Consumers Crave It, but Free Shipping is Killing Retailers’ Margins—Even Amazon
Perhaps the biggest selling point Amazon has to lean on with its Prime membership program is the promise of free two-day delivery. That one perk has resulted in a paradigm shift in the retail industry where everyone is competing to offer free and fast delivery, no matter the size of their operation.
The findings from a recent Walker Sands report show why this is practically a must. When asked which services would most likely convince them to shop online more, consumers far and away chose free shipping over other options like one-day shipping, free returns, same-day shipping, and in-store returns.
Nearly nine-in-10 consumers would like to see free shipping offered by online retailers, compared to seven-in-10 for one-day shipping and free returns.