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February 19, 2025
How Important Are Speedy Online Deliveries?
A survey from McKinsey found that 90% of consumers are willing to wait two or three days for deliveries as concerns over cost, reliability, and flexibility become more important in a fast last mile.
Speed ranked highest when consumers were asked to rate the importance of various delivery priorities in 2022, but it fell to fifth in 2024, according to McKinsey.
Coming in as more important than speed were:
- Cost: Cost of delivery was cited as the highest in importance, with more than 90% of respondents indicating that they are likely to abandon an online purchase if they learn it will involve high shipping costs. The shift comes as many retailers have stopped offering free shipping or raised minimum purchase thresholds to qualify for free shipping. Many also no longer offer free online returns.
- Transparency: Transparency of shipping moved up to second in importance around delivery from third in 2022 with respondents indicating their willingness to accept slower deliveries — especially in return for less expensive shipping — as long as the items are being delivered within the promised arrival window. About 50% of respondents indicated they track the status of orders to ensure that the shipment is progressing and remains on time. Consumers were also found to be forgiving over slightly late deliveries, especially if given alerts. About 85% of respondents do not consider an order “unacceptably late” if it arrives within one to two days of the expected delivery time.
- Flexibility/ease of returns: Flexibility and ease of returns moved up to third in importance around online delivery, up from fifth. More than half of survey respondents place importance on being able to schedule deliveries, while over 65% said they are likely to abandon an online shopping cart if the return policy on items is inflexible — such as if items are final sale with no returns allowed.
- Choice of delivery location: Choice of delivery location continued to rank fourth, just ahead of speed. About 45% of respondents have online shipments delivered to locations other than their home, such as their workplace, a brick-and-mortar store, or a delivery locker. Around 70% place importance on being able to schedule delivery times.
Other recent surveys similarly show a decreased emphasis on fast delivery in favor of other factors.
A FedEx-commissioned survey of 2,103 U.S. adults taken in May 2024 found that 75% of shoppers will wait longer for delivery to save money, with 81% willing to add more items to their order to avoid delivery charges. Among other priorities around delivery, 69% said order tracking has become a consideration before purchase, and 62% are more likely to buy online if the retailer offers free returns.
In its third annual Ecommerce Home Delivery Consumer Sentiment Report, Descartes surveyed 8,000 consumers in Europe and North America in the first three months of 2024 and found that more than two-fifths (44%) cite “lowest cost, speed is less important” as the top delivery preference in 2024, up from 39% in 2023. Furthermore, 20% say they want a “precise delivery window, with speed being less important,” with just 15% rating “fastest delivery, with timeliness being less important.”
Similar to McKinsey’s findings, Descartes’ survey found security, or delivery reliability, as well as delivery tracking, ordering ease, and returns cost and ease all ranking higher than past surveys in importance to consumers.
With the consumer’s greater emphasis on cost, McKinsey’s suggestions included adding incentives to nudge consumers toward slower or more consolidated deliveries, as well as considering increasing thresholds to qualify for free shipping. Other advice included tailoring flexibility and optionality to the preferences of target customers. McKinsey added, “Shippers and providers might consider focusing on three elements: keeping delivery promises, finding optimal trade-offs between steady reliability and quick delivery speeds, and leveraging technology to improve real-time tracking and sharing with consumers.”
Descartes said its study’s findings demonstrated “the importance of evolving from a monolithic delivery model towards one that offers consumers real choice. Retailers who cater to each customer’s specific characteristics throughout the buying process, including delivery, will be better positioned to maximize revenue and improve customer loyalty.”
Discussion Questions
Have consumer priorities around online delivery shifted with fast delivery becoming less critical?
Where do retailers need to particularly focus on improving amid changing expectations around delivery?
Poll
Loading …BrainTrust
David Biernbaum
Founder & President, David Biernbaum & Associates LLC
Shep Hyken
Chief Amazement Officer, Shepard Presentations, LLC
John Hennessy
Retail and Brand Technology Tailor
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From our research we have found that’s speedy delivery is often psychologically important, even where the product is not actually needed in a short timeframe. A lot of online shoppers like the idea of getting their orders quickly so they can put the transaction out of their mind and not worry or think about delivery. However, for the non-urgent purchase, the sweet spot is really next day or two-day delivery. Same-day and super-fast delivery are mostly important for very urgent purchases which make up a small fraction of online orders.
I think your research and your personal opinion answer the question accurately. If the consumer doesn’t need the product immediately, and the retailer charges a fee for speedy (same day/next day) delivery, the consumer will remove the emotion out the transaction and replace emotion with practicality. And speedy deliveries are – as you state – a very small portion of total online purchases.
Our latest study on online grocery shopping, out yesterday, found that 44% of online shoppers were willing to pay an additional fee for guaranteed delivery within two hours. So clearly, there is a market for folks who desire to have their goods delivered quickly, at least when it comes to groceries.
Speed counts when you need it. Amazon trained the public on how convenient it is to deliver something quickly. However, if the trend shows consumers are willing to wait, maybe it’s time for a change… BUT… If you have two retailers, and one can get something delivered to you a day or two before the other retailer, they win the business. Furthermore, customers will pay for better service, which includes faster delivery.
Was fast delivery ever critical? That was certainly an assumption, and we saw a race-to-the-bottom with ever more absurd timeframes built upon the premise, but I ‘ve seen precious little evidence it’s actually true. ” Reasonable”, and equally – if not more -important “reliable” seem like the appropriate metrics.
Retailers should prioritize optimizing delivery speed regardless of recent survey results, as it still directly impacts customer satisfaction.
Customer loyalty and repeat purchases can be enhanced by faster delivery times. A lack of delivery speed can result in increased customer dissatisfaction, negative reviews, and the loss of business.
Market share can be affected by customers choosing to shop with competitors who offer faster delivery options. Moreover, slow delivery can damage a brand’s reputation, preventing them from retaining or attracting new clients.
While optimizing delivery speed can be challenging for retailers, there are several factors to consider. The logistical challenges include coordinating with multiple carriers, managing inventory levels across multiple locations, and managing complex supply chains.
The cost of speeding up delivery can also be significant, potentially affecting margins if not managed carefully. Retailers can gain a competitive edge by investing in efficient logistics and supply chain management.
When consumers need something fast, no surprise, speed is critical. However, transparency from checkout to receipt and guaranteed LOS go a long way to satisfying customers’ expectations of delivery.
Ninety percent of online shoppers are happy with 2-day delivery. I am one of them.
The ridiculous short delivery times are a red-herring point for the pundits to discuss.
Delivery timing expectations are category specific. Category level shopper preferences would help brands and retailers align delivery service levels with shopper needs.
Getting something within an hour or a day was a fun little trick for a while, an amusement. Now that it is old news, and the challenges are out in the open, the majority of the market realizes we really do not need that “name a product” in an hour or a day.
Except that Pepperoni Pizza. THAT needs to get here fast!!!
Consumers want consistency and for retailers to keep their promise on delivery times more than anything. If you’re promised 2-day delivery, it needs to active in 2 days, and ideally include the ability to track its progress. Do consumers frequently need same-day or 1-day delivery? Sometimes. I agree most consumers do not need same day delivery for most products other than possibly prescriptions/medications and certain grocery items. Most other items 2-day will suffice, but 1-day will delight. There’s a reason Amazon is so focused on increasing the number of products available for 1-day (or overnight) delivery.
More importantly, consumers are not willing top accept shipping costs, especially for returns. Sure, this is tough to swallow for many retailers, but the ship has sailed on this one and there is no turning back. Retailers that charge for shipping, especially returns, are simply pushing consumers to competitors. Of course, having constraints on free shipping, say, minimum order value, is acceptable for most consumers. But, if you had free shipping for the purchase, you expect to have free shipping for a return!
Fast online delivery continues to be a priority for customers, even if they don’t need their purchase immediately. They’ve become accustomed to quick, reliable deliveries, the sense of near-instant gratification.
To improve, retailers need to focus on their communication. What options are available, what do they cost and are there any benefits, such as discounts, to selecting slower shipping times?
Yes, customers desire speedier deliveries, but they are tired of paying extra for speed, especially when retailers struggle to deliver on those promises anyway.
What matters now is clear communication, fair shipping costs, and hassle-free returns. If retailers want to keep customers, they need to stop overpromising on speed and start focusing on consistency.
Give shoppers accurate delivery windows, real-time tracking, and flexible options. If a package is late but they’re informed, most people understand. But unexpected fees or complicated returns? That’s what drives them away.