Pitney Bowes Survey: 80 Percent of Shoppers Say Shipping Really Matters When Making a Purchase

49 percent of consumers have walked away from a purchase due to shipping costs in the last year

STAMFORD, Conn., November 18, 2013 - Among Americans who purchased a product that required shipping this year, 80 percent consider shipping options, including free shipping, to be an important factor in their overall shopping experience, according to a recent survey commissioned by Pitney Bowes Inc. (NYSE:PBI). The survey polled consumers on attitudes toward shipping through all channels, including in store, online, catalog, and phone.

Retailers hoping to win sales this holiday season should prepare to accommodate the new set of parameters that add up to delivering a satisfying customer experience for today’s consumer.

“Shipping has become a considerable factor in consumers’ buying choices. In fact, there’s now a blurred line between the decision on a shipping method and the selection of a product when comes to the overall buying decision and customer experience and free shipping is just table stakes today,” said Jim Hendrickson, vice president and general manager of shipping solutions, Pitney Bowes. The survey found free shipping is by far more important to Americans surveyed over fast shipping (77 percent vs. 19 percent). That number spikes further among those who’ve shipped a purchase in the last year (82 percent vs. 16 percent, respectively).

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The National Retail Federation forecasts holiday sales will rise 3.9 percent to $602.1 billion – a slight improvement from last year. eMarketer projects 2013 U.S. retail ecommerce holiday season sales will to grow about 15.1 percent to $61.8 billion, up from $53.7 billion in 2012. With that, the Pitney Bowes survey found nearly half of Americans (47 percent) are paying more attention to shipping as part of the overall shopping experience now compared to three years ago.

With access to goods from many sources, consumers are prepared to walk away from a purchase if presented with excessive shipping costs. And, they do.

Among those surveyed, half (49 percent) have at some time abandoned their shopping cart, whether online, in store, or over the phone, due to shipping costs. On average, the threshold for abandoning a purchase occurs when shipping fees are $20 or more. Men have a higher threshold for cost, with $24 for shipping being the average tipping point.

“For retailers, how they leverage and manage their shipping costs and returns process and how they use that in creating an experience for their client is going to be a big factor in their sales this holiday season,” said Hendrickson. “Retailers need to be thinking: How do I manage my shipping costs out of ecommerce so I can ultimately give my client a lower cost for shipping or give it to them for free? The entire purchase experience is what matters to the buyer today.”

While 9 in 10 (89 percent) of Americans have made an online purchase at some point this year, only half (46 percent) those surveyed have returned a package through the mail. “Simplifying the return process with enclosed return mailing envelopes, free shipping, prepared labels and generous return policies are all part of what the consumer now expects,” Hendrickson added.

The survey found that 81 percent of consumers who made a purchase requiring shipping in the last year have tracked a package, with 30 percent tracking once or twice, 21 percent tracking 3-5 times and 30 percent tracking 6 or more times.

About the Study

Pitney Bowes conducted a survey to learn more about consumer shopping and shipping habits leading up to the holiday season. The survey results are based on the findings of a telephone survey conducted with 1,005 adults 18 years of age and older, living in the continental United States. Interviewing for this survey was completed by ORC International in October 2013. Margin of error for total respondents is +/- 3.1 percent at the 95 percent confidence level.

The survey overview is available at: http://pbi.bz/PBShip13doc

About Pitney Bowes

Pitney Bowes provides technology solutions for small, mid-size and large firms that help them connect with customers to build loyalty and grow revenue. Many of the company’s solutions are delivered on open platforms to best organize, analyze and apply both public and proprietary data to two-way customer communications. Pitney Bowes includes direct mail, transactional mail and call center communications in its solution mix along with digital channel messaging for the Web, email and mobile applications. @PitneyBowes http://www.pb.com/