As the e-commerce landscape heats up ahead of the holiday shopping season, a new white paper from FedEx and Morning Consult shines a spotlight on a trend retailers can’t afford to ignore: free shipping is no longer a luxury—it’s an expectation.
According to the report, “Bridging the e-Commerce Divide: Meeting Consumer Demands with Merchant Offerings”, a staggering 75% of consumers prioritize free shipping over fast delivery, and 81% are willing to spend more to meet minimum thresholds for free shipping. However, only 48% of retailers are meeting this demand.
“The consumer preference for free shipping over fast delivery—and their willingness to build bigger baskets to hit the threshold—is a significant behavioral shift,” said Jason Brenner, senior vice president, digital portfolio, FedEx. “As the holiday season approaches, the question is not whether retailers can afford to offer free shipping—it’s whether they can afford not to.”
Cart Conversion Hinges on Shipping Costs
Consumers surveyed revealed that free shipping outranks even price competitiveness, with 57% identifying it as a top priority in online shopping. Retailers, take note: shoppers are not just abandoning carts over high shipping fees—they’re actively looking for ways to maximize savings.
While consumers prefer no minimum threshold for free shipping, they’re not shy about spending more to avoid fees.
Convenience is Still King—At a Cost
Beyond free shipping, the report highlights consumers’ willingness to pay for convenience, with 55% of shoppers ready to shell out for same-day delivery and 45% for next-day delivery.
A Winning Formula for E-Commerce Success
The study outlines a roadmap for retailers to boost cart conversion:
- Free shipping and returns to eliminate purchase barriers.
- Accurate tracking to build trust.
- On-time delivery to ensure customer satisfaction.
For merchants, the implications are clear. Consumers are increasingly savvy, willing to spend strategically for value and convenience. As competition tightens, the ability to adapt to these preferences could be the deciding factor for long-term success.
Retailers who ignore this call to action, especially during peak shopping periods, risk leaving money on the table—and alienating their customer base.
The full white paper can be accessed on the FedEx E-commerce Resources page.
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