U.S. consumers are more enticed by free shipping than same-day delivery that is deemed too expensive, according to a survey from Boston Consulting Group.
The firm polled 1,500 U.S. consumers and asked what would convince them to shop more online. Only 9% said same-day delivery is a positive factor in their decision to make online purchases, while nearly 75% cited free delivery. Half of the respondents said lower prices convince them to shop online.
Shoppers said they would pay an average $7.50 to have a $50 purchase delivered on the same day. The consulting firm noted that the average response sits well below what most retailers charge for the service.
Retail giant Amazon.com (AMZN) has offered same-day delivery for certain items since 2009, depending on the city where a consumers resides.
United Parcel Service (UPS) is backing a startup, Shutl, which has offered same-day delivery in the U.K. for the last three years. Shutl is bringing its service to the U.S. in a few weeks.
FedEx (FDX) and the U.S. Postal Service have recently begun to offer same-day delivery in some U.S. areas.
Meanwhile, the Boston Consulting Group report said same-day delivery will likely prove to be a niche service.
Urban shoppers aged 18 to 34 who make over $150,000 annually reported greater interest in it, according to the survey, but only account for 2% of the market. Consumers overall said they would only consider same-day delivery if a particular situation, such as a last-minute gift, called for it.
The firm suggested that retailers should only offer shoppers same-day shipping for a limited number of products that are small and demand higher margins, including electronics and apparel. However, respondents did not show a willingness to pay extra to have those items delivered the same day an order is placed, the repot said.