Consumers opt for free delivery of online purchase: NRF

Consumers want free delivery of the items they buy online and many are also ready to pick up their online purchases at a local store, according to quarterly Consumer View report released by the National Retail Federation.

Baby boomers (born 1946-1964) demand free shipping the most followed by Generation X (1965-1980), and millennials (1981-1994).

“Consumers want free delivery, and they’re willing to meet retailers halfway to get it,” NRF vice president for Research Development and Industry Analysis Mark Mathews said.

“If we can get their purchase to the store, they’ll come pick it up if that’s what it takes to avoid a delivery charge. And once they’re in the store, they are very open to seeing what else the retailer has to offer. This is part of the growing evidence that consumers see retail as retail regardless of how they make their purchases and get them.”

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“As the realms of physical and digital shopping converge, retailers are offering more choices than ever in terms of how and when shoppers receive their purchases,” the report said. “And consumers are embracing these new fulfilment options – as long as they’re free.”

The report found that 75 per cent of consumers surveyed expect delivery to be free even on orders under $50, up from 68 per cent a year ago.

Baby boomers (born 1946-1964) demand free shipping the most, with 88 per cent expecting it. That compares with 77 percent for Generation X (1965-1980), 61 per cent for millennials (1981-1994) and 76 per cent for Generation Z (1995 and later).

Many consumers now consider shipping costs even before getting to the checkout page, with 65 per cent saying they look up free-shipping thresholds before adding items to their online shopping carts. Consumers also want their products fast, with 39 per cent expecting two-day shipping to be free, and 29 per cent have backed out of a purchase because two-day shipping wasn’t free.

The survey found that 70 per cent of consumers who are aware of buying online and picking up in store had tried it, and the top reason for doing so was to avoid paying for shipping. Picking up at the cash register is still the most frequent practice, done by 83 per cent of those who have bought online and picked up in-store. But as options grow, 63 per cent would like to be able to use curbside pickup (tried so far by only 27 per cent), 56 per cent want merchandise delivered to the trunk of their cars (tried by 19 per cent) and 50 per cent want to retrieve purchases from a locker (tried by 16 per cent).

Whether they are in a store to pick up an online purchase or there to shop, consumers are attracted by special events. The survey found 58 per cent are interested in going to retail events, with 87 per cent saying they would come in for a sale or early/exclusive access to items, 81 per cent for a party, 80 per cent for a product demonstration, 71 per cent for a game or competition, and 69 per cent to interact with a product expert or to visit a pop-up shop.

Consumer View is a quarterly report issued by NRF that gauges consumer behaviour and shopping trends related to stores, online channels, customer loyalty, technology and other topics. Toluna Analytics surveyed 3,002 U.S. adults 18 or older. The consumer poll has a margin of error of plus or minus 2 percentage points.