Free Shipping Statistics (2024): How Important Is It to Consumers? (2024)

FAQs

Free Shipping Statistics (2024): How Important Is It to Consumers? ›

70% of consumers prefer free shipping while shopping online

Free Shipping and Customer Loyalty

Multiple studies suggest that consumers tend to be more loyal to businesses that offer free shipping over those that don't. According to a survey by Deloitte, 60% of customers say that they are willing to increase their purchases from a retailer that offers free shipping.

While 80% of American shoppers expect free shipping above a certain order threshold, 66% expect free shipping on all orders. 50% of consumers have abandoned their online shopping cart due to shipping and/or delivery options. 82% of shoppers are more likely to complete a purchase if delivery is free.

It's no secret that online shoppers love free shipping. Seventy-three percent (73%) of consumers are likely to purchase items online because of free and fast shipping. It can be a difference maker in gaining more customers. Today, offering better delivery options is becoming a major selling point among online sellers.

A free shipping threshold is a clever marketing tool that entices customers to add an extra item or two to their shopping cart to reach the minimum purchase, thus increasing average order value.

Free shipping without conditions is best for high-margin products, where you can account for shipping expenses for the overall price of your products.

It increases sales

Free shipping can help boost sales. Shoppers believe they're getting a better deal when they don't have to pay for shipping costs. Customers will buy more to get it and will take their business elsewhere if they can't.

By providing numerous shipping options, an online retailer can capitalize on the booming ecommerce experience to generate revenue streams through increased sales. Free shipping entices customers to purchase by wrapping all costs into the price of each item.

Does the Customer Pay? Let's say an item's retail price is $20, and it costs $5 to ship. If the retailer charges $25 and announces, “free shipping”, then the customer is paying. This approach is still common among many third-party sellers on sites like Amazon and eBay.

The practice of shipping products for free has become standard in e-commerce. The Digital Commerce 360 Top 1000 Database shows that 74.4% of retailers offer some sort of free shipping: 20.4% unconditional for all orders, 45.1% with a value threshold, and 14.5% requiring membership in a loyalty program.

Do consumers really want to shop online? ›

Summary. Consumers are casual and prefer online shopping due to convenience and the consistent experience that they have online. However, whether digital or physical, losing sight of who your customer is and how they change can negatively impact your business.

Among U.S. consumers the two most popular categories for online purchases are Clothing and Shoes. 43 percent and 33 percent of consumers respectively chose these answers in our representative online survey. The survey was conducted online among 10,051 respondents in the United States, in 2024.

The factor analysis conducted by author pointed out to eight factors-positive attitude (“I really like buying at the Internet”, “I consider internet to be my first choice when I need any product or service”), perceived usefulness, product risk, perceived risk, price, traditional shopping, promotion, financial risk.

For one thing, offering free shipping leads to a reduction in cart abandonment – it helps push potential customers over the edge to close the sale. It can also set your company apart from the competition and increase perceived value.

Studies have found that shoppers will spend 30% more per purchase if a store offers free shipping, which means your overall profit margin can cover the cost of free shipping plus some and lead to higher ROI for your retail or ecommerce business.

In conclusion, offering free shipping on Etsy can bring significant benefits to your online business. From increasing sales and profit margins to standing out from competitors, this strategy has proven to be successful for many sellers.

Boosts Conversions. Fast shipping can reduce cart abandonment. Research reveals that 22% of customers abandon their carts due to slow delivery, and some may even cancel the delivery midway.