MEMPHIS, Tenn., October 29, 2024 – FedEx Corporation (NYSE: FDX) today released a new white paper with Morning Consult that reveals that 75% of consumers prioritize free shipping over fast shipping, emphasizing a significant trend in consumer behavior and the growing importance of free shipping in the online shopping experience.
Free shipping has become an expectation for a majority of consumers. Over half of those surveyed (57%) prioritize free shipping when making an online purchase, even more than finding the best prices (54%). In fact, 81% of shoppers are willing to increase their spending to meet a retailer’s free shipping threshold.
Despite this trend, less than half of the retailers surveyed (48%) currently offer free shipping.
“The consumer preference for free shipping over fast delivery, and the willingness to build bigger baskets to hit the threshold, is a significant behavioral shift that has a sizable impact on cart conversion and average order value,” 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.”
While consumers prefer not to have a minimum dollar amount to qualify for free shipping, most are willing to spend more to avoid paying for shipping. This presents an opportunity for merchants to improve sales by setting a higher but attractive minimum threshold, enhancing the customer experience and encouraging larger cart sizes without deterring purchases.
Based on the data, the winning formula for securing higher conversion rates includes a combination of free shipping, free returns, accurate tracking, and on-time delivery.
The white paper also highlights that despite recent economic headwinds, convenience is still valuable for today’s consumers, many of whom are willing to pay extra for same-day or next-day delivery. Forty percent of consumers prefer next-day home delivery from local retailers, far outweighing in-store pickup (19%) and curbside options (18%). Furthermore, 55% of consumers are willing to pay for same-day delivery, with 45% willing to pay for next-day delivery.
See the full findings of the FedEx white paper, visit our Ecommerce resources page.
About the Survey
Morning Consult conducted two surveys, one among consumers and one among merchants. The consumer survey was conducted between May 23-28, 2024, among a sample of 2,103 U.S. consumers. Results from the full survey have a margin of error of +/-2%.
The merchants survey was conducted between May 31-June 11, 2024, among a sample of 510 U.S. merchants. Merchants are defined as an employee or owner of an organization with over $100k in annual revenue that sells goods online. Results from the full survey have a margin of error of +/-5%.
About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. With annual revenue of $88 billion, the company offers integrated business solutions utilizing its flexible, efficient, and intelligent global network. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 500,000 employees to remain focused on safety, the highest ethical and professional standards, and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about.