What: Shipping fees are the lifeline of online profitability.

Why it is important: Customers are increasingly accepting to pay for shipping fees, but it needs to come with perks

The challenge of abandoned shopping carts in e-commerce remains significant, with many customers leaving their carts due to unexpected shipping costs. Recent surveys reveal that attitudes towards shipping are changing: a growing number of consumers are willing to pay for shipping, with a third of respondents indicating a willingness to pay at least $10 and older generations (Gen X and Boomers) are okay with paying $20 or more. Additionally, there's a shift in delivery expectations, with most customers now comfortable with a three to five-day delivery window, rather than two days.

Despite this, the desire for discounts persists, with only 30% of customers willing to pay full price for gifts and many expecting substantial discounts. The notion of 'free shipping' is being re-evaluated as customers recognize it’s often included in product prices. Around 75% of e-commerce businesses offer free shipping, but strategies are evolving. For example, Amazon increased its Prime membership fee and introduced surcharges for small orders to manage growing fulfillment costs.

Returns also pose a logistical challenge, with three-quarters of customers deterred by return fees. Overall, the e-commerce sector continues to evolve, balancing consumer expectations with profitability and logistical realities.

Shoppers getting used to shipping fees – as long as they get a good deal