86% of consumers define fast delivery as two days or less and 63% will switch retailers if they cannot receive their items within this timeframe
VIENNA, Va. — September 11, 2023 — In today’s digital era, instant gratification has become the expectation, and consumers are increasingly choosing retailers that provide faster delivery. According to a new study released by leading e-commerce parcel carrier OnTrac, the majority of online shoppers expect to receive their deliveries within two days or less, with the availability of next-day (74%) and same-day (67%) delivery overwhelmingly driving consumers to make a purchase from a retailer. While faster delivery is helping retailers capture more share of wallet, slow delivery is driving customers away. Slow delivery caused 63% of consumers to switch retailers, 60% to not purchase again from a retailer, and 43% to abandon their carts or stop shopping with that retailer.
OnTrac commissioned the study from Hanover Research to survey 5,000 consumers to understand how their shopping behaviors and preferences have shifted and what factors drive their online shopping decisions. The research, including takeaways and recommendations for e-commerce retailers, is outlined in OnTrac’s whitepaper.
Key insights from the study include:
- Eighty-six percent of consumers define fast delivery as two days or less: Sixty-three percent of consumers expect to receive their items within this timeframe and will switch retailers if their expectations are not met. More than one-third (39%) demand this same caliber of delivery speed no matter what, even if a retailer offers free shipping or other benefits, and are not willing to wait longer than two days.
- Faster delivery matters and consumers are paying for it: Fifty-eight percent of consumers paid for faster delivery, a 53% increase from before the pandemic. Most shoppers would spend at least $3 for next-day delivery (71%) and $5 or more for same-day delivery (55%).
- The demand for home delivery is growing: Almost all consumers (95%) plan to maintain or increase their use of home delivery, with 81% planning to make this their primary shopping method. Forty-one percent expect to transition to home delivery within the next year.
- Free shipping remains critical amid inflation: Since inflation, nearly 60% of consumers reported that they will not shop with a retailer that does not offer free shipping. High shipping costs also led consumers to choose a different retailer (63%), stop shopping with a retailer (57), and shop in-store (56%).
“Faster delivery has become the standard. Consumers are expecting to have their items delivered within two days, and retailers that can’t keep up will lose business,” said Josh Dinneen, Chief Commercial Officer of OnTrac. “As retailers seek to differentiate themselves and rebuild brand loyalty, those that provide faster home delivery can win more customers and increase share of wallet.”
For more information or to schedule an interview, please contact Manu Aggarwal at email@example.com.