Cost of Shipping is number one challenge for ecommerce today
The cost of shipping is the number one challenge for ecommerce today, according to a recent report released in the US.
Nearly 47 per cent of consumers will spend a minimum amount to get free shipping.
Forty-two percent of consumers say their willingness to shop with a retailer again if a package is lost depends on how the issue is resolved.
Sixty percent of consumers surveyed declared they do at least half their shopping online, compared with 41 per cent the previous year, while 61 per cent prefer to purchase online when given the choice.
Fewer merchants are offering universal free shipping this year versus the previous year when 22 per cent did, and 18 per cent offered it most of the time.
Ten percent of online shoppers wanted same or next-day delivery in 2022, down from 18 percent in 2021 and 21 percent of merchants say supply chain disruptions are regularly impacting shipping operations vs 38 per cent in 2021.
Sixty-eight percent of ecommerce merchants are utilising two to four carriers. Many e-commerce players have over the last few years been subsidising shipping to gain market share but most are deciding that this is not sustainable for long term commercial growth.