As more consumers are turning to eCommerce, retailers are scrambling for customer attention, which creates the deep hunger as to why shipping speed matters. The shipping of orders has become the most critical component of the supply chain, creating the highest cost of expenses experienced by businesses; however, home delivery service is a necessary evil. Retailers must just efficiently deliver products and services to customers in order to retail them.
To understand the role of shipment speed, the consumers’ attitude towards speed has changed over the years, driven majorly by Amazon after it unveiled its free Prime membership in 2005. The company promised its customers free, 2-day shipping, which helped the company differentiate itself from other competitors like Target and Walmart.
Why Shipping Speed Matters to Consumers
In a survey conducted by eConsultancy, it was found that retailers with longer waiting times increase the rates of abandoned carts. According to the survey:
• 7% of the carts abandoned were associated with an estimated delivery time of 3 days from the time the order was placed.
• 15% of the carts abandoned were as a result of the delivery time expected to be 4-5 days from the time the order was placed.
• 15% was when the estimated delivery time was 6-7 days after the ordered date.
• Nearly 40% were abandoned when the delivery time hit eight days.
These survey findings are clear: with slow delivery time, retailers tend to lose their customers and is a prime reason as to why shipping speed matters.
Fast Shipping Increases the Listings’ Visibility of an eCommerce
The eCommerce marketplace becomes increasingly crowded with items and merchants each day. To enhance the convenience of consumers, retailers are already permitting their customers to filter items through a range of features. Often, fast delivery is the most highlighted option. Filtering options of major retailers like eBay allow shoppers to prioritize their delivery speed.
Fast Shipping Reduces Fear Among Consumers
Fast shipping policies are always associated with assured delivery dates. In the case of Amazon Prime, buyers have the option of accepting delivery within 24 hours in some cities. With the eBay Guaranteed Delivery program, consumers can trace the delivery time between one and four days after placing an order. With these programs in place, customers gain confidence in the retailers and can make a purchase on any items because they are assured of the fast and reliable delivery system.
Fast Shipping Increases Chances of Good Reviews
Exemplary customer services include quick delivery of goods or services, reliable shipping, and smooth transactions. Looking at eBay’s customer reviews, many customers praise the retailer’s shipping program and smooth transactions. With the direct correlation between reviews and conversion rates, fast shipping is considered another key component of conversion.
Customers are always willing to Pay More for Shipping Speed
Numbers on the importance of fast delivery to customers do not lie. About 65% of consumers are willing to pay extra money for same-day delivery. In fact, retailers who provide their consumers with a same-day delivery option have an 85% competitive edge over other competitors, and the speed of product delivery can even impact customer loyalty. The point here is that consumers are willing to part with extra cash just to ensure they receive their services faster. This means that fast delivery helps eCommerce businesses to stay competitive even in saturated markets.
With fast shipping, customers remain happy, encourage repeat purchases, and boost the listings’ visibility of an enterprise. Furthermore, fast delivery is associated with higher conversion rates due to increasing consumer satisfaction. Any company that sells to consumers should be flexible in their operation and offer customers the option of expedited shipping in order to meet their expectations. This will not only lead to higher profit margins but also retained customers and more revenues.
Contact Port City Logistics to Improve Your Business's Shipping Speed
When your business needs to optimize its shipping process, Port City Logistics is the perfect partner. Our experienced staff has created numerous solutions that will revolutionize the way your business sends your products. Your products, materials, or goods will get to your business faster and often cheaper than ever before. If your supply chain needs optimization, contact Port City Logistics and learn what we can do for you.