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Consumers Will Pay More for Fast Delivery

Online shoppers expect free shipping, but most will pay more money to get their order quicker.

That’s according to a new report from Dotcom Distribution titled “Driving Customer Loyalty With Fast Delivery and Quality Packaging.” The fulfillment and logistics services provider surveyed 558 shoppers—most of whom reported purchasing apparel online in the past year—to discover how the entire delivery process impacts customer lifetime value.

Not surprisingly, speed was important to almost all respondents, with 87 percent saying that the amount of time it took to receive an e-commerce order would influence their decision to shop with a retailer or brand again.

To that end, more than two-thirds (67 percent) would pay more to get same-day delivery if they needed to receive it by a certain date, while 47 percent would do so just to have it in their hands as soon as possible. This is especially true for people who purchased a luxury item, with 84 percent choosing to pay more for a shipment to arrive sooner.

Furthermore, 44 percent of online shoppers surveyed said fast delivery would motivate them to make a repeat purchase with new brands—almost twice as high as improved overall quality of the products themselves.

Though speed fosters loyalty, a lack of fulfillment transparency could hurt a consumer’s perception of a brand or retailer. Forty-seven percent of respondents said they chose not to order from a retailer again because of a lack of insight into the status of a package throughout the fulfillment and delivery process.

For some shoppers, fulfillment transparency is particularly important when an order is in transit. That’s when 21 percent of respondents said they’d like the most insight into its whereabouts.

Of the people surveyed, 78 percent said they purchased clothing online in the past 12 months, while 34 percent said they shop online once or twice a month. Millennials (those ages 25 to 34) made up 28 percent of respondents, while 20 percent ranged in age from 35 to 44.