How Shipping Affects Your Brand

In the era of getting everything yesterday, e-commerce retailers are held to high standards to meet or exceed customer expectations. Now, more than ever, customers are blaming companies, not carriers, for slow delivery, expensive delivery, or lost packages. Shipping and delivery are an extension of a company’s brand, and they can significantly impact a customer’s view. The real question is, how much does shipping affect a brand’s bottom line?

Free-Delivery Options Matter

In 2019, the National Retail Federation researched what customers want in shipping. They found that 75 percent of consumers surveyed expect delivery to be free even on orders under $50. They also found that 39% of those surveyed expected free two-day shipping to be free and that 29% have backed out of a purchase because two-day shipping was not free. These stats prove that customers value free shipping and make their purchasing decisions based on it. 

Loyalty is Key

Not only does it affect their consumers’ desire to follow through with the purchase, but shipping also affects brand loyalty. A recent study done by Convey, a delivery experience management provider, found that 98.1% of US internet users agreed that shipping impacts brand loyalty. On top of that, 83.5% of that same group surveyed said they wouldn’t buy from a retailer after a bad shipping experience. 

While you could argue that brand loyalty is not the most important thing, we’re here to challenge that notion. Brand loyalty is more than just consumers liking your logo or colors; instead, it affects how much they spend. Brand loyalty means loyal customers. According to Benefit, it costs 5 to 10 times more to acquire a new customer than to keep current customers. On top of that, Benefit also found that current customers tend to spend 67% more than new customers. Brand loyalty is more about keeping existing customers excited and connected to the brand than attracting new customers. Obviously, in a growing business, you want to do both, but the numbers tell us to focus on current customers. 

Attracting New Customers

Brand loyalty is a huge factor that gets customers to buy over and over again, as well as attract new customers. According to the Harvard Business Journal, companies that are loyalty leaders grow 2.5 times faster than their competitors. Small Biz Genius found that “56% of customers stay loyal to brands which ‘get them.’” Additionally, Fundera found that 80% of customers are willing to pay more for a better customer experience. Customers want to be brand loyal; in fact, it’s human nature to be dedicated to brands and products. Capturing a brand loyal customer is highly lucrative to businesses of every size. 

Shipping directly relates to brand loyalty mainly because it’s about the experience given to the consumer. The consumer is willing to add more to their cart to get free and fast shipping. Customers are more likely to abandon a cart if they have to pay for shipping. In an era of “I want it yesterday” culture, e-commerce retailers must readjust their shipping strategies to meet consumer expectations.