Table of Contents
- What do ecommerce customers expect for shipping and delivery?
- What is the best shipping service for low delivery costs?
- Which shipping services are best for sustainability?
- What is the most reliable shipping service?
- Which shipping service offers a convenient return process?
- How can I exceed customer expectations?
- Key Takeaways
As a proactive business leader, you always seek the best ecommerce shipping service to save money and protect your profit margins. However, depending on what each customer values, your go-to shipping service may not always be the best option. It’s important to offer choices.
Customer expectations play a pivotal role in customer satisfaction and the likelihood of repeat business. Let’s look at four of the most recent consumer concerns and the corresponding ecommerce shipping services you can consider for your shipping strategy.
What do ecommerce customers expect for shipping and home delivery?
Because of the strong precedent Amazon sets, you may assume that everyone expects free shipping and 2-day delivery. However, it’s a mistake to base business decisions on assumptions instead of data. To better understand what ecommerce shoppers value, Descartes conducts an annual ecommerce consumer sentiment study.
Our annual survey asked consumers to rate their shipping and delivery concerns and other factors they consider when shopping online. Then, we compiled the findings and statistics about customers’ online spending habits and delivery preferences. Let’s look at four key customer preferences: low delivery costs, sustainability, reliability, and an easy returns process. We’ll also explore some popular shipping services related to them.
What is the best shipping service for low delivery costs?
Our study found that 66% of consumers surveyed want lower delivery costs when shopping online. It’s no secret that customers sometimes abandon the cart due to sticker shock if the shipping cost is higher than expected. It’s always wise to include a low-cost shipping option, then let the consumer decide to pay more for a different shipping service if they want to.
One popular shipping and delivery service that provides low delivery costs for US domestic shipping is USPS Ground Advantage. With commercial rates starting lower than $5.00 and reliable shipping within 2-5 days, USPS offers some of the cheapest shipping rates. You can use a rate shopping tool to quickly compare USPS Ground Advantage to shipping services from other carriers and find the most affordable shipping option.
Which ecommerce shipping services are best for sustainability?
Our survey discovered that concerns about sustainability and the environmental impact of shipping and delivery have decreased recently, with a report of 65% in 2022, 63% in 2023, and just 58% in 2024. However, the data shows a significant difference in sustainability concerns by age group.
Only 43% of people aged 65+ answered they had sustainable home delivery concerns. However, 83% of people aged between 18 and 24 said that environmental impact and sustainability are a concern for them when purchasing. Depending on your business’s core demographic, offering sustainable shipping could be a major competitive advantage.
Sendle offers a 100% carbon-neutral shipping service for sustainability-conscious customers, with no subscription fees, extra costs, surcharges, lock-in contracts, or hidden fees. You can create a Sendle account for free and offer an environmentally friendly shipping option for customers who want it.
FedEx is another carrier that has committed to a goal of carbon-neutral operations globally by 2040. FedEx’s Priority Earth project includes vehicle electrification, sustainable energy, and carbon sequestration. FedEx was ranked #3 with an Environmental Score of 73.68 in the Transport & Logistics Industry for “America’s Most Responsible Companies 2023”. UPS followed closely, coming in at #4 with an Environmental Score of 75.20.
What is the most reliable shipping service?
According to our recent study, shipping and delivery issues were cited as one of the biggest grievances when shopping online. One in five people questioned said they had a negative delivery experience the previous year. Twenty percent said regular deliveries were unreliable, and 17% claimed to have been dissatisfied with the delivery process when ordering online.
Shipping service reliability always matters, but it’s especially crucial for delivering time-sensitive orders such as Mother’s Day gifts or solar eclipse glasses for a rare event. If your business frequently uses event-based promotions or experiences seasonal spikes in order volume, consider using a highly reliable shipping service, even if it’s not the cheapest option.
UPS has dominated on-time delivery for the past five years, leading the industry for reliable shipping in the 2023 US holiday season with a 97.5% on-time delivery rate. UPS also has an excellent reputation for home delivery amongst shoppers, who may appreciate the option to choose UPS shipping at checkout.
Which shipping service offers a convenient return process?
The fourth important aspect identified by consumers in our study was the frustration surrounding returning an item. Seventy-five percent of people view ease of returns as important. This pain point is essential in businesses selling clothing, shoes, or gifts, as their customers are likelier to return an item. Customers are far less likely to make another purchase if they have a negative return experience.
UPS and FedEx offer convenient returns by accepting parcels at drop-off locations that consumers regularly visit, like Walmart or the grocery store. In the US alone, there are over 60,000 UPS Access Point drop-off locations, like CVS and Advance Auto Parts. FexEx also offers thousands of drop-off locations, including Walgreens, Walmart, and Dollar General. For USPS returns, customers can visit their local post office.
Shipping software offers ways to make returns easier, such as automatic return label printing for many carriers, including USPS, UPS, and FedEx. This feature allows you to print a return label with each outbound label, among other options. Customers will feel secure knowing that returning an item won’t require obtaining a printer or inputting information, another task off their mind.
How can I exceed customer expectations?
The path to delighting your customers starts with understanding what they want and deciding to make it happen. Now that you have some facts about consumer expectations and ideas for different ecommerce shipping services, it’s time to strengthen your shipping strategy.
Multi-carrier shipping software is the best way to utilize multiple shipping services to satisfy various customer delivery expectations. Integrating a strategic variety of carriers and all your sales channels in one user-friendly platform allows you to easily select the right service for each order using automation rules.
Not sure which software to try? Here is a helpful guide to choosing the best shipping software for your business. Your customers (and your bottom line) will appreciate the improvement.
Key Takeaways
- 66% of consumers want lower delivery costs when shopping online. USPS Ground Advantage shipping service offers low-cost rates for delivery within 2-5 days.
- 58% of consumers expressed concerns about sustainability. Sendle offers a 100% carbon-neutral shipping service, and FedEx is committed to carbon-neutral operations by 2040 with vehicle electrification and carbon sequestration.
- One in five people say they had a negative delivery experience, with 20% saying deliveries were unreliable. UPS has an excellent reputation with a 97.5% reliable delivery rate.
- 75% of consumers viewed ease of returns as important. UPS and FedEx offer thousands of parcel drop-off points in the United States, conveniently located in grocery stores, pharmacies, and other locations people regularly visit.
How does Descartes ShipRush help with shipping service selection?
Descartes ShipRush helps businesses like yours make the shipping service selection process seamless and effortless. We offer discounted shipping rates and 90+ integration partners, including USPS, UPS, FedEx, DHL ecommerce, and Amazon Shipping. You can add as many carrier accounts as you want, then use our rate shopping tool to compare rates and delivery speed.
Our multi-carrier, multi-channel shipping software can help you automatically select the most appropriate service for each order via business automation rules. We even offer free live support to help you build custom rules!
Try it for free today and see how easy it is to ship with Descartes ShipRush! With reliable and affordable shipping software, you can improve efficiency and exceed customer expectations.
About the Author
Troy Graham is VP of Customer Success for Descartes’ ecommerce suite of solutions. His area of expertise includes warehouse automation, parcel shipping, fulfillment, and ecommerce sales channel integrations with other programs. Troy brings over 15 years of experience in ecommerce-related technology and optimizing fulfillment operations.