Online shoppers “will sacrifice fast shipping for free shipping”

A new white paper from Canada Post concluded that online shoppers “love a bargain”, and will therefore “sacrifice fast shipping for free shipping”. Canada Post added that this could mean that online shoppers “will buy from a competitor who offers free shipping or even delay their purchase because they expect a merchant to offer free shipping soon as part of a promotion”.

Canada Post commissioned the research for the white paper, “Is the price right? Designing an effective shipping pricing strategy“, so it could get a better understanding of what combination of shipping options Canadians prefer. More than 4,000 online shoppers shared their views.

“Canada Post works with retailers of every size to support their growth and success in e-commerce,” commented Jennifer Mach, Strategy & E-commerce Market Development, Canada Post. “This research gave us incredible data, which we’ve used to offer small- and medium-sized merchants strategies and tools they can apply as they create, adjust or even experiment with their shipping strategy.”

Nearly two-thirds of online shoppers have abandoned their carts in the past due to shipping costs being too high, Canada Post found. But, on the flipside, 70% of shoppers would shop more often with a merchant if they were offered free shipping with a minimum purchase.

The research suggested that free shipping has become a “table stake”.

“Conversion rates drop by as much as 50% if free shipping is not offered, and 66% of online shoppers will sacrifice fast shipping for free shipping,” commented Canada Post.