Retail Insight Network Mentions First Insight | Survey: Consumers Willing to Spend More on Holiday Season Shipping
A recent survey by First Insight has revealed that a significant 33% of US consumers are willing to shell out a minimum of $10 for shipping, setting the stage for potential shifts in shopping behaviour.
The study, entitled ‘The State of Consumer Spending: Retail Holiday Shopping Trends 2023’, is in its second annual iteration, highlighting key changes in consumer habits.
In a notable finding, the survey underscores that shipping costs have experienced a substantial 62% year-over-year increase, emerging as the primary factor influencing online purchasing decisions.
Regardless of the amount consumers are prepared to spend on shipping, the majority anticipate delivery times ranging from three to five business days.
High shipping spenders: a lucrative target for retailers
A closer look at consumers willing to invest more in shipping reveals a segment that retailers should strategically focus on this holiday season. Those open to spending more than $15 on shipping are 2.5 times more likely to increase their overall holiday shopping budget compared to last year.
Moreover, older consumers, specifically Gen X and Boomers, show a strong willingness to spend $20 or more on shipping, contrasting with younger shoppers.
However, despite their openness to spending, this group is bargain-conscious, with 42% requiring promotional offers ranging from 35% to 50% to encourage conversions.
First Insight CEO Greg Petro emphasises the potential benefits: “Targeting those consumers who are willing to spend more on shipping can reap countless rewards for retailers’ bottom and top lines this holiday season.”
He suggests a shift away from the expectation of free and fast shipping, signalling changes in consumer behaviour.
Social media’s impact on high shipping spenders
The survey also uncovers that 78% of consumers willing to splurge on shipping use social media to aid their gift-finding quests, compared to a mere 37% of those spending $5 or less on shipping.
While newer platforms like TikTok gain traction, Facebook remains the top choice for almost two-thirds of respondents, with YouTube and Instagram following closely behind at 57% and 56%, respectively.
Read the full article on Retail Insight Network.