Wonder

Impact of Shipping Incentives & Return Policies

Delivered January 4, 2020. Contributor: Jana C.

Goals

To obtain insights into the impact of shipping incentives and returns impact sales as well as how some major retailers in the appliances space are handling this issue. This will be used to develop a best in class strategy for shipping and returns

Early Findings

Shipping Incentives and eCommerceThe option to not pay for shipping is very attractive to consumers. Incentives such as free shipping impacts consumers decision to spend. 
Free shipping encourages online shoppers to spend more.
One company, Red Door Interactive, saw its orders increase by 90% as a result of offering free shipping.
Similarly, 2 Big Feet saw an increase of 50% in orders after introducing free shipping.
 It was also found that more items are added to a cart and the cart value increases when there is free shipping.
Other studies show that 79% of consumers have expressed that they would spend more online if there is free shipping.
 54% say if there was free returns and exchange they would be more likely to shop online.
If there is same day shipping, 42% more persons would shop online.
The availability of next day shipping increases shopping by 40%.
The offer of easy online returns increases shopping by 36%.
The existence of 2 hours or less shipping increases online shopping by 21%.

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