There is an increasing number of consumers that are giving more emphasis on fast delivery than free shipping, according to Portland SEO's Augusto Beato.
According to Beato, although online shipping fees are advertised as free, the cost is included in the price of the product. It is also partially subsidized by an annual membership fee in the case of some sellers like Amazon.
He added that the free shipping scheme is also getting clients to purchase more goods even those that are not that necessary to reach an online seller’s free shipping minimum.
Beato, who is the CEO of Portland SEO, was reacting to a new study from Pitney Bowes which revealed that while 79 percent of U.S. consumers still favor free shipping over fast shipping, the figure has dropped 86 percent in 2017.
This was primarily driven by millennials, with 35 percent of them preferring fast shipping, up from 20 percent the year before. "The millennials are looking at their bills and realizing that there's nothing for free, so they'd rather push online merchants to deliver more quickly," Beato pointed out.
While according to Deloitte's 33rd annual "Holiday Survey" of consumer spending intentions and trends, there was no change in the percentage who prefer free shipping over fast delivery, he pointed out that according to Deloitte vice chairman Rod Sides expectation about delivery speed have changed considerably to two days or less.
In the said Deloitte survey, 88 percent of respondents prefer free shipping over receiving their holiday packages faster (12 percent) for the second consecutive year.
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