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Retail Industry Updates Supply Chain Industry Updates

Cost Still Counts, But Delivery Often Closes the Deal

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Everyone loves getting a deal, but it looks like consumers’ definition of a good deal is evolving somewhat from emphasizing price to prioritizing fast fulfillment.

Merchants in a recent survey said that faster shipping was a more effective tool in driving conversions than offering discounts to customers. How effective? Ware2Go, a UPS company, said 65% of merchants reported an increase in e-commerce cart conversions of up to 25% when they offered a one- to two-day delivery promise. 

That compared to only 29% that said offering a free gift with purchases and 26% who said offering an in-cart discount were effective in getting people click “buy.” The survey also found:

  • 75% believed that offering two-day shipping made them more competitive. 
  • 71% said customers were willing to pay extra for one-to-two-day shipping.
  • 59% said that offering two-day shipping guarantees brought more repeat customers, and 39% said it got them better online reviews.

The obstacles retailers cited to making fast deliveries happen included insufficient inventory management (33%), incorrectly filled orders (31%), slow delivery speeds (30%) and lack of labor availability (30%). “Meeting consumer expectations for fast shipping requires powerful behind-the-scenes operations, from supply chain to last-mile delivery,” Ware2Go CEO Steve Denton observed. 

More survey results can be found here.

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