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%.

Proposed next steps:

You need to be the project owner to select a next step.

In our initial findings, it is clear that there is some information on shipping and online shopping. We, therefore, propose to continue to provide 5-7 insights on: 1. The impact of free shipping on online e-commerce sales. 2. Impact of flexible return policy on online e-commerce sales.

We also propose to conduct industry analyses on 10 major players in the appliances space. The analysis will focus on how each tackle free/discounted shipping incentives, whether it is offered with a minimum purchase, the geographic area, how they tackle returns, details on in-store credit or money back, and the product condition to be qualified for return. Some players may include BestBuy, CanadianAppliance Source, Costco, RONA, Trail Appliances, Structube, IKEA, West Elm, Article, Casper, Endy, and Sleep Country.