Free delivery: a christmas cracker
Wednesday 11 November 2009
TAGS: Christmas | eCommerce |
There was a prominent effort from online retailers to offer free delivery during Christmas 2008. John Ryder looks at last years figures in an effort to see what we can learn and apply to 2009.
There was a marked increase in the number of online retailers offering free delivery over Christmas last year. Merchants who had never offered free delivery were doing so and there were others, such as Amazon; who dropped their minimum spend for free delivery in an effort to be even more attractive.
Free delivery has always been something that online shoppers have suggested strongly influences their purchase decisions. But does it really work?
Show me the figures!
The Top 30 UK Online Retail Satisfaction Index measured customer satisfaction with prominent online merchants during the Christmas shopping period in 2008. In total, 7,000 shoppers we’re monitored.
In particular, one report from that study measured the effects of free delivery. Here are the key findings…
Everyone’s doing it
Free delivery offers are becoming increasingly common. Two thirds of shoppers in the study said that they had been offered free delivery in 2008, compared to just over half in 2007.
Free delivery please
17% of respondents suggested that delivery costs were the reason why they chose to buy from the high street. Bad news for most multi-channel retailers.
On the other hand, 31% of respondents said that a free delivery offer was the reason that they purchased on a website instead of in a store.
Compete or lose out
Over half of the 7,000 shoppers in the study said that they chose to purchase from one merchant over another because of a free delivery offer.
Summary
Shoppers, regardless of season; are influenced significantly by delivery cost. Not only might they chose a willing competitor over a merchant that charges for delivery, it also affects their decision whether to buy in a high street store.
If you’re a retailer and have serious ambitions this Christmas, free delivery has to be a given careful consideration.
John Ryder is the Commercial Director at Silverbean. If you have any questions or would like to discuss how Silverbean can help you achieve your oneline marketing objectives through good usability; please contact John using one of the following.