Slow Delivery Times Drive Online Shopping Cart Abandonment

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Slow Delivery Times Drive Online Shopping Cart Abandonment

05/23/2016

Consumers today can get their hands on a product faster than ever before. So it might not come as a surprise that six in 10 (60 percent) of them reported that they decided to abandon their virtual shopping cart when told that delivery will take longer than they anticipated, a new study from delivery service provider Dropoff revealed. Respondents also reported that faster delivery times make them more loyal and less likely to shop around.

But a desirable speed can differ from consumer to consumer; exactly what do consumers see as a reasonable amount of time for delivery? While the median expectation for retail delivery is two days, 40 percent of respondents said they would like it to be the same day, the study revealed. This suggests that desires do not align with expectations, as only 1 percent of consumers reported that they expect retailers to be able to deliver products the same day.

“This gaps shows how quickly consumer desires are changing and that retailers need to have urgency around getting faster delivery options on their roadmaps,” Dropoff CEO and cofounder Sean Spector tells Retail Leader.

Additionally, the study uncovered an interesting connection between delivery speeds and the time period when retailers began offering free shipping. Of the 93 percent who said they had experienced free shipping from a retailer, 80 percent said that experience made them more likely to purchase from that retailer again. Meanwhile, 41 percent said it made them expect free shipping from that retailer’s competitors, and 30 percent said they became irritated when a competitor didn’t offer free shipping.

“We expect delivery speeds to follow the same trend,” Spector says. “What this means is, those first to market with same-day delivery will have a huge opportunity to increase purchases and drive loyalty.”

Of course, speed and free delivery aren’t the only things consumers cited as important to their delivery experience. According to the survey results, three-quarters (75 percent) of respondents said they find the ability to track their purchase to be important. Meanwhile, more than one-third (35 percent) placed importance on a person arriving in uniform, while one-fifth (20 percent) placed importance on the friendliness of the delivery staff.

“This data shows that whether retailers create their own delivery network or use a partner, they need to be considering more than simply how fast a package can get from point A to point B,” Spector explains. “They need to vet technology, professionalism and delivery staff as well.”