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Research Outline
Prepared for Omid F. | Delivered January 4, 2020
Impact of Shipping Incentives & Return Policies
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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
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Early Findings
Shipping Incentives and
e
C
o
m
m
e
r
c
e
The 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%
.
T
h
e
existence of 2 hours or
l
e
s
s
shipping increases
online shopping by 21%
.
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