Deloitte: Consumers expect more from 'fast shipping'

NOVEMBER 10, 2016 | BY DEENA M. AMATO-MCCOY

As Amazon continues to up the ante on convenient, fast shipping options, shoppers expect their favorite brands to follow suit.

 

Specifically, 42% of shoppers surveyed consider three- or four-day shipping "fast" – a significant drop from the 63% who said so last year. Instead, the majority (83%) of shoppers consider fast shipping to mean delivery within two days or less, according to the “2016 Deloitte Holiday Study,” a report based on responses from 5,038 consumers in the United States.

 

Nearly two-thirds (64%) of these shoppers think they should be allowed to order after Dec. 17 and still get free shipping by Dec. 24, and more than 7 in 10 surveyed shoppers (71%) plan to take advantage of free shipping opportunities this season, the study said.

 

Shoppers are also being more strict when it comes to expecting favorable return policies. For purchases made in physical stores, consumers mostly want refund options other than store credit (67%), and those purchasing items online want free online returns (82%). They also want the option to return a product purchased online to a physical store (69%), and refund options other than store credit (61%), data showed.

 

Retailers should consider these and other options as means of driving customer loyalty. For example, about half of consumers who shop at a physical store are more likely to remain loyal (58%) to the merchant, even when products are out of stock. However, when shopping online, 77% of consumers are more likely to look elsewhere for a product when they can't find what they want, the study said.

 

"With major online retailers finding new ways to appeal to customers' needs, they are raising the bar on consumer expectations. Just within the past year, we've found a dramatic change in customers' perception on shipping," said Rod Sides, vice chairman, Deloitte LLP and U.S. retail, wholesale and distribution practice leader. 

 

"We're seeing this trend transcend from shipping into other retail policies like returns, price matching and product availability,” he said. “This could prove a challenge for retailers as they streamline purchasing, delivery and return cycles to appeal to a well-informed, efficiency-demanding group of consumers."

 

A retailer’s response to data security could also drive loyalty. For example, three in four shoppers (73%) surveyed are concerned when a retailer has one or more data breaches, however very few (7%) are deterred from shopping that retailer again. Further, almost half (47%) say they would shop again if the retailer took action to regain consumers' trust, and 33% would continue shopping with the retailer but change their methods of payment, the study said.