Compared to 2020, the preference for home delivery over BOPIS is up 10%, importance of fast delivery is up 16%, and demand for free shipping is up 10%.
The COVID-19 pandemic accelerated the shift to e-commerce and transformed consumer behavior and purchasing habits that require retailers to adapt, according to the results of a new study released today by LaserShip, the largest regional e-commerce parcel carrier in the U.S. and leader in last-mile delivery. Consumers still overwhelmingly prefer home delivery over buy online, pick up in-store (BOPIS) and other forms of click and collect, and are increasingly choosing retailers that can provide faster delivery.
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LaserShip commissioned the study from Hanover Research to survey over 3,000 consumers to understand how their shopping behaviors and preferences have evolved since the start of the pandemic. The research, including takeaways and recommendations for e-commerce retailers, is outlined in LaserShip’s whitepaper.
Key insights from the study include:
- Consumers still prefer home delivery, despite the growth of BOPIS and click and collect: Eighty-nine percent of consumers prefer home delivery over BOPIS, up nearly 10% from 2020.
- Slow delivery is costing retailers business: Seventy-three percent of consumers view fast delivery as critical online shopping criteria, a 16% increase from 2020, and they are choosing retailers that can deliver their items more quickly. In 2021 alone, slow delivery caused 64% of consumers to not try a new retailer and 54% to switch retailers.
- Consumers want their items to arrive faster and are willing to pay for it: Nearly 60% of shoppers surveyed paid for faster delivery, with 69% of those having paid more for next-day delivery. These findings are particularly compelling and reflect the extent of the pandemic’s impact on shopping behaviors, as 62% of consumers surveyed in June 2020 had never paid for expedited delivery.
- Consumers will switch retailers to get free shipping: High shipping cost is the leading cause of cart abandonment, driving nearly half of consumers to abandon their carts in 2021. Moreover, 81% of consumers switched retailers because shipping was too expensive.
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“The pandemic has only increased shoppers’ preferences for free and fast home delivery,” said Josh Dinneen, Chief Commercial Officer of LaserShip. “This study provides retailers with key insights and strategies to help them build flexible, resilient supply chains that meet consumers’ expectations and respond to evolving shopping behaviors in to acquire customers and increase brand loyalty.”
Through fast, reliable last-mile delivery, LaserShip delivers competitive advantage to leading e-commerce retailers, helping them build brand loyalty, create supply chain flexibility, and reduce delivery cost. LaserShip has 35 years of delivery experience and is continuously innovating to better serve its customers through its investments in technology, automation, and machine learning to stay ahead of the evolving e-commerce landscape.