Pitney Bowes Survey: 80 Percent of Shoppers Say Shipping Really Matters When Making a Purchase
November 18 2013 - 11:00AM
Business Wire
49 percent of consumers have walked away
from a purchase due to shipping costs in the last year
Among Americans who purchased a product that required shipping
this year, 80 percent consider shipping options, including free
shipping, to be an important factor in their overall shopping
experience, according to a recent survey commissioned by Pitney
Bowes Inc. (NYSE:PBI). The survey polled consumers on attitudes
toward shipping through all channels, including in store, online,
catalog, and phone.
Retailers hoping to win sales this holiday season should prepare
to accommodate the new set of parameters that add up to delivering
a satisfying customer experience for today’s consumer.
“Shipping has become a considerable factor in consumers’ buying
choices. In fact, there’s now a blurred line between the decision
on a shipping method and the selection of a product when comes to
the overall buying decision and customer experience and free
shipping is just table stakes today,” said Jim Hendrickson, vice
president and general manager of shipping solutions, Pitney Bowes.
The survey found free shipping is by far more important to
Americans surveyed over fast shipping (77 percent vs. 19
percent). That number spikes further among those who’ve
shipped a purchase in the last year (82 percent vs. 16 percent,
respectively).
View infographic.
The National Retail Federation forecasts holiday sales will rise
3.9 percent to $602.1 billion – a slight improvement from last
year. eMarketer projects 2013 U.S. retail ecommerce holiday season
sales will to grow about 15.1 percent to $61.8 billion, up from
$53.7 billion in 2012. With that, the Pitney Bowes survey found
nearly half of Americans (47 percent) are paying more attention to
shipping as part of the overall shopping experience now compared to
three years ago.
With access to goods from many sources, consumers are prepared
to walk away from a purchase if presented with excessive shipping
costs. And, they do.
Among those surveyed, half (49 percent) have at some time
abandoned their shopping cart, whether online, in store, or over
the phone, due to shipping costs. On average, the threshold
for abandoning a purchase occurs when shipping fees are $20 or
more. Men have a higher threshold for cost, with $24 for shipping
being the average tipping point.
“For retailers, how they leverage and manage their shipping
costs and returns process and how they use that in creating an
experience for their client is going to be a big factor in their
sales this holiday season,” said Hendrickson. “Retailers need to be
thinking: How do I manage my shipping costs out of ecommerce so I
can ultimately give my client a lower cost for shipping or give it
to them for free? The entire purchase experience is what matters to
the buyer today.”
While 9 in 10 (89 percent) of Americans have made an online
purchase at some point this year, only half (46 percent) those
surveyed have returned a package through the mail. “Simplifying the
return process with enclosed return mailing envelopes, free
shipping, prepared labels and generous return policies are all part
of what the consumer now expects,” Hendrickson added.
The survey found that 81 percent of consumers who made a
purchase requiring shipping in the last year have tracked a
package, with 30 percent tracking once or twice, 21 percent
tracking 3-5 times and 30 percent tracking 6 or more times.
About the Study
Pitney Bowes conducted a survey to learn more about consumer
shopping and shipping habits leading up to the holiday season. The
survey results are based on the findings of a telephone survey
conducted with 1,005 adults 18 years of age and older, living in
the continental United States. Interviewing for this survey was
completed by ORC International in October 2013. Margin of error for
total respondents is +/- 3.1 percent at the 95 percent confidence
level.
The survey overview is available at:
http://pbi.bz/PBShip13doc
About Pitney Bowes
Pitney Bowes provides technology solutions for small, mid-size
and large firms that help them connect with customers to build
loyalty and grow revenue. Many of the company’s solutions are
delivered on open platforms to best organize, analyze and apply
both public and proprietary data to two-way customer
communications. Pitney Bowes includes direct mail, transactional
mail and call center communications in its solution mix along with
digital channel messaging for the Web, email and mobile
applications. @PitneyBowes http://www.pb.com/
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20131118006011/en/
Media:Pitney Bowes Inc.Barbara HannanManager, External
Communications203-351-7467 office203-828-7656
mobilebarbara.hannan@pb.com
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