Customers love shipping at a discount. Customers love discounted shipping so much that many retailers offer loyalty programs with free shipping or two day shipping. Customers feel like they are getting a deal, especially during holidays when shipping can become a costly extra when shopping online.
Amazon Prime members enjoy the lowest ratesFlatteningThe last twelve months saw a 8% increase in Prime’s growth. This is the lowest annual rate since Consumer Intelligence Research Partners began tracking Prime in 2012. This is due to other retailers catching on and including Prime members in their loyalty programs. The retail giant is no longer the only option for consumers — they can shop elsewhere and get two-day shipping.
A recentsurveyAccording to Mike Williams (CEO of Prime), 72% of Prime members cited free shipping, not music or videos, as their primary benefit.uShip. “Customers are drawn to online retail because they can shop anywhere and everything is available. He said that Amazon Prime has shown that fast and free shipping is a requirement for the reimagined loyalty programme.
Major retailers are starting to notice.
Many have included shipping perks to their membership plans. Wayfair, Amazon’s rival, now offers a loyalty program with next-day delivery for free. Sally’s Beauty has also launched a new loyalty program.Membership programMembers who spend over $200 per year in their store receive free shipping on online orders.
Holidays: Two-day free shipping
Target recently launched a campaign to increase holiday sales.AnnouncementTwo-day shipping is free for all season. All consumers are eligible to receive this promotion. There is no minimum purchase or membership. This is a smart and competitive move that gives customers more reasons to shop at your store during the holidays. This encourages customers to return to your store for more. Why would they buy from a retailer that requires a paid membership in order to receive free shipping when they can get it from you?
Williams states that while many retailers, such as Nordstrom, offer free shipping, consumers are expecting free two dayshipping. However, free shipping is essential for revenue and loyalty.
Shipping expectations are shaping customer loyalty programs
According to Williams, Amazon holds the top market position due to their ability to offer free two-day shipping. Smaller retailers must look at reworking their shipping processes if they want to stay competitive. Even if your company doesn’t have billions to spend on technology, you still have valuable technology to communicate with customers during the shipping process.
Williams says that text and email alerts, in-home setup, accessing a customer service representative, and scheduling delivery times are all great touch points for the last mile. It doesn’t require a large budget. You can still compete with fast shipping and two-day delivery if you have the resources to do so, but you will not be able to compete for reliability or flexibility in the longer process.
Fast facts from the 2018 Omnichannel Buying Report
BigCommerceA study of more than 3,000 shoppers was conducted to determine how they are shopping in 2018. To find out how shoppers are buying in 2018, we conducted a study of over 3,000 consumers.
- 39% of digital consumers visited the brand’s website.
- 36% Read customer reviews
- 33% tried to price match the product online
- Amazon: 32% of customers found this brand
Survey respondents spend an average of 69% of their discretionary income in-store each month.
Factors for Buying in-Store:
- Consumers are 3x more likely to purchase items in physical stores if they can touch them and try them on.
- 67% of customers who visit a store to return an item purchased online will browse and shop there.
The study shows that physical stores are becoming increasingly digitally connected. Websites, social media channels, reviews and product descriptions are all valuable tools that help consumers make a decision about whether or not to shop at your store.
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