Could Free Shipping Be the Key to Higher Customer Retention?

Could Free Shipping Be the Key to Higher Customer Retention? Featured Image

(Image Source: Parcel Monitor)

There is no denying that free shipping has a substantial effect on customer retention among many others. Several studies have shown how customers who receive free delivery are more likely to return for repeat purchases from the same retailer. In line with this, our media partner Parcel Monitor has conducted a study in partnership with Rakuten Insight to examine the impact of free shipping on consumers’ shopping behavior in Southeast Asia. Here is what they found:

  1. The majority of Indonesian customers consider up to four days of waiting time for packages to be acceptable, even if free shipping is involved.
  2. 85% of Malaysian customers indicated price as one of the top factors affecting their decision to make a purchase.
  3. For 60% of Thai consumers, customer service is key to customer satisfaction and subsequently, retention.
  4. Singaporean shoppers are the least likely bunch to increase basket size just to qualify for free shipping.

Despite the fact that free shipping is a great way to remain competitive for e-commerce businesses, Parcel Monitor urges them to weigh the pros and cons before taking the plunge. To find out more, click here to view the full article.

About Parcel Monitor

Parcel Monitor is the leading platform for e-commerce logistics insights. By leveraging on our data capabilities, Parcel Monitor creates an open space for the ecosystem to discover, collaborate and innovate. 

Through data and the collective wisdom of the community, we believe we can inspire change in e-commerce logistics and deliver a better experience for consumers, merchants, and carriers.

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