Two-Day…. Next-Day… Same-Day
For today’s shopper there is perhaps no bigger incentive that drives purchases than free shipping. In fact, 80 percent of U.S consumers cite free shipping as a factor that would make them more likely to shop online, according to a 2018 Walker Sands Future of Retail Report. For most online retailers, free shipping is just table stakes in today’s competitive e-commerce environment. It’s a basic requirement to attract buyers and keep them satisfied.
However, free shipping is no longer enough. Consumer expectations continue to accelerate and faster is always better in today’s ‘on-demand’ economy. Giant online retailers, such as Amazon, have conditioned consumers to expect more, faster, and on-time.
On April 25, 2019, Amazon once again raised the stakes in the race for faster delivery. It announced free, one-day delivery for all of its Amazon Prime members. To put that in perspective, Amazon Prime has more than 100-million subscribers, according to a January 2019 report from Consumer Intelligence Research Partners. Each Prime subscriber pays $119 per year and spends an average of $1,300 on purchases through Amazon.
Not to be outdone, Walmart also has announced free, next-day delivery for orders of $35 or more. Walmart previously offered free, two-day delivery for the same order. Walmart has no subscription requirement for their deliveries. As the two behemoths go toe-to-toe, who is paying for all of this free shipping?