Free shipping is a powerful tool that retailers use to drive sales and customer satisfaction. Free shipping can potentially increase a retailer’s sales by up to 10% and has been shown to influence buyer behavior significantly.
Interestingly, orders that come with free shipping have a 30% higher average order value compared to those that do not. Notably, businesses providing free shipping experience a substantial 20% higher conversion rate compared to their counterparts who charge for shipping.
To provide a clear picture of its impact, I’d like to share the most important free shipping statistics that are crucial to note immediately. 📊📈
Free Shipping Statistics: The Key Data
- 66% of consumers expect free shipping on all online purchases.
- 48% of online shoppers abandon their carts due to shipping costs.
- Free shipping can increase retailer sales by up to 10%.
- Free shipping has led to a 90% increase in e-commerce orders.
- Free shipping orders have a 30% higher average order value.
- Businesses that offer free shipping have a 20% higher conversion rate than those that do not.
- 84% have made a purchase specifically due to free shipping.
- 58% of customers have added additional items to their carts to qualify for free shipping.
- 90% of consumers say that free shipping is their primary reason for shopping online.
- 27% of consumers will avoid shipping costs by shopping in-store.
Sources: (PR Newswire, Hot Jar, Square Up, Shift 4 Shop, USPS Delivers, Up Sell It, E-Consultancy, Martech, Shopify.)
Table of Contents
66% of Consumers Demand Free Shipping for Online Buys
Important takeaway:
| Insight from Data | Rationale |
| Free shipping is no longer a luxury but a necessity for online retailers. | With 66% expecting it, businesses that don’t offer free shipping risk alienating a significant portion of their customer base. |
| Consumer habits and expectations are evolving. | The high percentage indicates a shift in what consumers view as standard online shopping protocol. |
| Cost-effective logistics and supply chain strategies are crucial for e-retailers. | To meet consumer demands and maintain profitability, efficient shipping solutions are essential. |
Source: PR Newswire
High Shipping Costs Push 48% to Abandon Online Carts
Important takeaway:
| Insight from Data | Rationale |
| Shipping costs are a significant deterrent for online shoppers. | Nearly half of online shoppers refrain from completing a purchase due to additional shipping fees. |
| Transparent pricing strategies are crucial for e-retailers. | Hidden or unexpected shipping costs can disrupt the customer journey and deter sales. |
| Offering competitive or free shipping can be a competitive advantage. | Addressing the primary concern of 48% of shoppers can give businesses a substantial edge in the e-commerce landscape. |
Source: Hot Jar
Retailers See Up to 10% Sales Spike with Free Shipping
Important takeaway:
| Insight from Data | Rationale |
| Free shipping is a potent sales driver for retailers. | A potential boost of up to 10% in sales signifies the tangible value of this incentive for customers. |
| Incorporating free shipping can provide a significant return on investment. | Though retailers absorb shipping costs, the increase in sales can outweigh the associated expenses. |
| Consumers view free shipping as a valuable proposition. | Offering it can enhance brand loyalty and promote repeat purchases in the competitive retail landscape. |
Source: Square Up
90% Surge in E-Commerce Orders Attributed to Free Shipping
Important takeaway:
| Insight from Data | Rationale |
| Free shipping is a game-changer for online businesses. | A staggering 90% increase in orders illustrates its monumental influence on consumer behavior. |
| E-commerce platforms must prioritize shipping strategies. | Such a pronounced increase signifies that shipping policies can make or break an online retail business. |
| Consumers place immense value on shipping incentives. | The data suggests that for many, the decision to purchase online hinges significantly on shipping costs or the lack thereof. |
Source: Shift 4 Shop
30% Higher Order Value Noted for Free Shipping Purchases
Important takeaway:
| Insight from Data | Rationale |
| Free shipping incentivizes consumers to purchase more. | A 30% increase in average order value showcases the compelling pull of free shipping offers. |
| E-retailers can capitalize on enhanced profitability with free shipping strategies. | By encouraging larger purchases, businesses can potentially offset the costs of offering free shipping. |
| Consumers perceive significant value in free shipping. | The willingness to add more to their carts indicates that consumers seek to maximize the benefit of free shipping deals. |
Source: USPS Delivers
Free Shipping Yields 20% Conversion Boost for Businesses
Important takeaway:
| Insight from Data | Rationale |
| Free shipping is a definitive catalyst for consumer action. | A 20% higher conversion rate underscores its efficacy in nudging customers to finalize purchases. |
| Not offering free shipping can be a competitive disadvantage. | Businesses that abstain are potentially missing out on a fifth more in conversion opportunities. |
| Free shipping removes a significant barrier in the purchase journey. | By eliminating this hurdle, businesses streamline the path to purchase, leading to a higher likelihood of transaction completion. |
Source: Shift 4 Shop
84% Shoppers Driven by Free Shipping Incentives Alone
Important takeaway:
| Insight from Data | Rationale |
| Free shipping is a primary decision-making factor for the vast majority of consumers. | With 84% being influenced, it’s evident that free shipping holds paramount significance in purchasing choices. |
| E-commerce strategies must prioritize free shipping to capture more sales. | Neglecting this influential factor could mean missing out on a substantial portion of potential buyers. |
| Free shipping isn’t just a perk, it’s a determinant of sales. | Such a high percentage indicates that for many, free shipping isn’t an added bonus, but a decisive factor in their buying journey. |
Source: Up Sell It
To Secure Free Shipping, 58% Add More to Their Carts
Important takeaway:
| Insight from Data | Rationale |
| Free shipping thresholds effectively encourage increased purchasing. | The fact that 58% of customers add more to their carts suggests a direct correlation between order size and shipping incentives. |
| Setting a free shipping minimum can strategically boost sales volumes. | This approach capitalizes on consumer desire for value, prompting them to reach specified purchase amounts. |
| Consumers are willing to adjust their shopping habits for perceived savings. | The act of adding items reveals a behavioral inclination to maximize deals, even if it entails higher initial spending. |
Source: E-Consultancy
Free Shipping Tops the List for 90% of Online Shoppers
Important takeaway:
| Insight from Data | Rationale |
| Free shipping is the foremost motivator for consumers in the digital shopping landscape. | A commanding 90% aligning their online shopping habits with this incentive speaks to its unmatched appeal. |
| Brick-and-mortar retailers face stiff competition from e-commerce’s shipping incentives. | The high percentage suggests physical stores may need to innovate to compete with such a compelling online offering. |
| E-commerce strategies must prioritize free shipping to optimize customer acquisition. | As the principal reason for most consumers, not offering free shipping could mean significant missed opportunities in the market. |
Source: Martech
27% Choose In-Store Shopping to Sidestep Shipping Fees
Important takeaway:
| Insight from Data | Rationale |
| Shipping costs can drive a notable segment of consumers to physical stores. | 27% opting for in-store shopping to evade shipping fees signifies its deterrent effect on e-commerce. |
| Brick-and-mortar stores retain a unique advantage in the face of e-commerce growth. | They offer immediate product access without additional shipping costs, appealing to a substantial consumer segment. |
| Balancing shipping fees with other value propositions is crucial for e-retailers. | To counteract the 27% predisposed to in-store shopping, e-commerce platforms must offer compelling reasons to shop online. |
Source: Shopify
More Amazon Resources: https://www.onlinedasher.com/amazon-statistics/
