Retailers understand that consumers want free shipping. But they are challenged by and grappling with the rising costs of shipping online orders, according to “The State of Shipping in Commerce,” a report from Temando, a shipping and fulfillment software platform provider.
The report confirms that shipping causes shopping cart abandonment. Fifty-four percent of shoppers abandoned their carts due to expensive shipping, while 39% abandoned their carts due to no free shipping. And 26% abandoned their carts due to slow shipping.
According to the study, 59% of shoppers will opt to buy from a bricks-and-mortar store if they perceive that the delivery fee for buying the same item online is too high. And while 66% believe that the high cost of shipping is not relative to the experience provided, 51% of retailers listed the rising cost of carrier services as a key challenge.
While retailers are experimenting with premium delivery services, they have limited knowledge of how much these services cost and/or are held back by operational barriers. Temando’s research highlights that retailers are struggling to find a profitable model for premium delivery services, and as a result, retailer adoption has slowed down:
● 53% of retailers…