Shipping costs are the number one reason that holds a customer back from ordering. Its a two way sword, while free shipping will increase the order value of businesses by multiple folds, it also costs them if the customers return the product back.
But the pros are way greater than the cons. For every $1 billion in sales, retailers typically deal with $145 million in returned merchandise, that’s 14.5% of total revenue.
Free shipping not only helps businesses get new customers, it also helps them retain a good amount. To shed more light on the topic, here is a list of free shipping statistics as of 2024.
Importance of Free Shipping At a Glance
- 62% of online shoppers won’t purchase without free shipping.
- 48% of consumers will abandon their cart due to extra shipping costs.
- People are willing to spend $40 on average for free shipping.
- 72% of B2B businesses prefer free shipping.
- 45% of people want free return shipping.
70% of consumers prefer free shipping while shopping online
70% of people say free shipping is the reason why they shop online. 62% of them say it’s so important to them that they won’t make a purchase without it. This shows that the convenience of free shipping could be what decides whether someone buys online or goes to a store for the same item.
| Reason to shop online | Share of Online Shoppers |
| Free delivery | 70% |
| Coupons and discounts | 39.50% |
| Customer reviews | 32.60% |
| Next-day delivery | 31.80% |
| Easy returns policy | 31.40% |
| Simple online checkout | 30.40% |
| Loyalty points | 25.70% |
| Social likes and comments | 22.40% |
| Eco-friendly credentials | 18.60% |
| Cash on delivery | 18.20% |
42% of all eCommerce transactions in the U.S. include free shipping
4 out of 10 eCommerce transactions in the United States include free shipping. This highlights that consumers like getting free shipping and often expect it when they shop online. It’s become a crucial part of e-commerce stores to attract shoppers.
48% of online shoppers will abandon their cart due to extra shipping costs
48% of shoppers abandon their online purchases at checkout due to additional costs such as shipping, taxes, or fees, with the second most common reason receiving only 26% of the votes. This highlights the significant role that free shipping plays in converting customers.
82% of shoppers will wait for extra period of time to get free shipping
A PRN survey of over 5300 shoppers revealed that 82% of shoppers would rather get free shipping over expedited shipping. Shoppers also revealed that they would go in-store to purchase an item to avoid paying for shipping.
Customers will always go for options that allow them to save money. Selecting an extended shipping option helped customers save money by 38%.
Waiting times for free international shipping among online shoppers
66% of shoppers in the United Arab Emirates were okay with waiting between one and seven days for international deliveries if it meant getting free shipping. In India and China, 58% of people felt the same way about waiting for international purchases.
Australian shoppers were even more patient, with 66% willing to wait up to two weeks to avoid paying for shipping. Likewise, over 60% of shoppers in Brazil, South Africa, and Japan were also happy to wait for free shipping.
Younger generations are more patient than older ones when it comes to international free shipping
Up to 50% of global consumers are willing to wait one week for their cross-border orders to arrive. Younger shoppers tend to be a bit more patient compared to older generations. 51% of Gen Z and 49% of Gen X are willing to wait for up to seven days to receive international free shipping.
These figures drop to 44% for Baby Boomers.
65.4% of online retailers offer free shipping on certain conditions
Around 65.4% of online retailers provide free shipping on orders under certain conditions like reaching a minimum order threshold, subscribing to memberships, using a store credit card, or in the form of promo codes.
Only 17.5% of global online retailers provide free shipping on all their orders.
80% of customers are willing to meet the minimum purchase threshold for free shipping
8 in 10 online shoppers are willing to meet the minimum purchase threshold to avoid shipping charges.
However, there’s a disparity between consumer willingness and retailer requirements. On average, consumers are willing to pay up to $43 per order to qualify for free shipping, whereas retailers typically set the minimum order value for free shipping at $64
This table shows the average spending threshold for consumers based on their income:
| Income level | Spending threshold to get free shipping |
| Less than $50k | $32 |
| $50k to $99k | $38 |
| $100k to $199k | $46 |
| Over $200k | $53 |
shipping with order minimums as an upselling strategy, which can raise your average order value by multiple folds, let’s have a look below.
37% of retailers increased their average order value by providing free shipping
A Stamp.com survey revealed that 37% of retailers who provided free shipping saw an average increase of more than $7 in their order value.
The research also revealed that free shipping orders produce an average of 15 to 20% higher order values than orders without the promo.
This table shows the increase in order value after providing free shipping:
| Increase in avg. order value | Share of retailers |
| Did not increase | 12% |
| Increased by less than $1 | 1% |
| Increased by $2 to $3 | 6% |
| Increased by $4 to $6 | 15% |
| Increased by more than $7 | 37% |
72% of B2B retailers prefer free shipping
Free shipping is not only preferred by online shoppers but also by the majority of B2B retailers.
When asked “When selecting retailers to do business with online from a shipping and delivery point-of-view, which are the most important factors”
72% of B2B retailers voted for Free Shipping. Speed of delivery and ready to ship stock was the 2nd and 3rd most voted option.
62% of customers are willing to increase their purchases from a retailer that offers free shipping
A Deloitte study revealed that Offering free shipping not only boosts immediate sales but also builds trust and makes customers come back.
62% online shoppers said they will buy from a retailer again if they offer free shipping. This positive experience encourages satisfied customers to spread the word, which is crucial in today’s shopping era where 99% people look for reviews before making a purchase.
So providing free shipping not only means retaining customers but also gaining new customers by the power of reviews!
45% of consumers want Free return shipping
45% of consumers said free return shipping is most important to them when purchasing an item online, around 24% said it’s the ease of processing a return.
Having a free return shipping option is as crucial as having free shipping with 84% of people checking out the return policy when they make a purchasing decision.
Free return shipping comes at a cost to retailers
Retail goods worth $743 billion were returned in 2023. As a percentage of sales, the total return rate was 14.5%.
This shows that for every $1 billion in sales, retailers typically deal with $145 million in returned merchandise. Online purchases have an even higher return rate, with 17.6% of the $247 billion in goods bought online being sent back.
42% of consumers would cancel their eCommerce subscriptions if free shipping were discontinued
42% of eCommerce subscription holders say they would cancel their subscription if the provider discontinued free shipping
39% of consumers prioritize free shipping when choosing subscription plans. 93% of successful merchants, recognized for their strong customer loyalty and higher spending rates, typically include free shipping in their offering.
Offering free shipping in eCommerce subscription becomes more crucial as 30% of Subscribers Account for Nearly 80% of Subscription Merchant Revenue.
Final Word
With a significant 70% of shoppers preferring free shipping and nearly 48% abandoning carts due to additional costs, its impact on purchase decisions is profound. Retailers strategically offering free shipping not only attract but also retain customers, with 62% indicating they are more likely to return to businesses providing this benefit, underscoring its role in fostering loyalty.
Financially, free shipping plays a dual role for retailers. While 37% see an increase in average order values, managing costs, especially associated with free return shipping, poses challenges. Despite these complexities, consumer willingness to meet minimum purchase thresholds to qualify for free shipping highlights its importance in balancing customer expectations with operational realities.
