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.
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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 (NASDAQ:AMZN) has offered same-day delivery for certain items since 2009, depending on the city where a consumers resides.
United Parcel Service (NYSE: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 (NYSE: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.