Retail Shipping Is Evolving—and Surprisingly, So Are Customer Expectations

Consumers aren’t the only ones watching their wallets—retailers are cutting costs and spending smarter too. Shoppers can choose when and where to spend, often chasing the best overall deal, while retailers have less flexibility.

Retailers must cut costs carefully to protect customer experience and brand image—often by streamlining backend operations or using automation. Since the pandemic, many have taken bolder steps, especially around shipping, shifting away from “free and fast.” Shoppers have mostly accepted the changes, but only when certain expectations are still met.

Let’s take a look at how much consumers value shipping options. In a recent survey, Radial found that 3 out of 4 online consumers say that brands’ shipping options (cost and timing) are extremely or very important in determining whether they will shop with a brand.

So, making changes to these policies definitely comes with a high risk of losing customers to brands with more amicable policies. That said, retailers are taking the plunge.

Our study found that in the last 12 months, 85% of retailers have adjusted their shipping policy to boost profitability.

What have they done to do so?

Those are significant numbers, which may reflect an industry-wide trend that will establish and bolster a new set of expectations for customers. But how have customers reacted?

Only 5% of retailers say they have lost customers due to changing the shipping policy.

Consumers have not abandoned their desire for free shipping – in fact, they continue to pursue those options. Retailers report that 73% of shoppers choose longer shipping windows to get free shipping and 57% will increase spend to qualify for free shipping.

While they may choose longer shipping windows, 60% of consumers report that 3 to 5 days is the longest delivery timeframe that is reasonable. Retailers need to understand this threshold as it is likely a point of attrition for customers that cannot be guaranteed delivery within it.

Consumers are willing to accept modified shipping policies if brands offer multiple e-commerce fulfillment options:

It’s critical that retailers understand that these expectations underpin why consumers are willing to accept altered shipping policies.

If free shipping is not available at all, 50% of consumers are willing to pay for it and expect an economy shipping option.

For e-commerce retailers that may struggle with managing new shipping policies and how to meet customer expectations within those new policies, a fulfillment partner like Radial, can provide the expert guidance, streamlined omnichannel order fulfillment process, and proven ability to meet customer’s expectations for a great shipping and delivery experience.

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