Home delivery remains preferred, but price is making the difference
Research from Sendcloud reveals that 82.3% of UK shoppers still favor home delivery when given the choice. However, this preference shifts significantly when shipping costs come into play. When home delivery includes a fee and service point delivery is free, 61.7% of shoppers opt for the latter, compared to just 38.3% who are willing to pay for home delivery.
“Although sustainability and flexibility play a key role in the rise of out-of-home delivery, it’s ultimately the cost advantage that’s pushing consumers to make the switch,” says Sabi Tolou, Co-founder at Sendcloud. “Out-of-home delivery is more efficient for carriers, allowing them to deliver multiple parcels in one trip. Consumers expect those savings to be passed on to them, and this expectation is shaping their choices at checkout.”
Shoppers’ cost sensitivity is underscored by their willingness to pay for delivery. 58.9% of consumers cite lower shipping costs as a major factor in opting for OOH delivery. Additionally, 80% of UK shoppers believe that shipping costs should be lower, or even free, when selecting parcel lockers or service points. For a £50 order, UK shoppers are willing to pay £4.15 for home delivery, but only £3.32 for out-of-home delivery.
“While cost savings are a major driver for consumers, they also represent a significant opportunity for retailers,” Tolou adds. “Shipping to parcel lockers or service points is generally more cost-effective than home delivery. By offering OOH options, e-commerce businesses can reduce their shipping costs, improve profit margins, and meet growing consumer demand for flexible delivery. It’s a win-win: retailers who prioritize OOH delivery at checkout not only satisfy their customers but also gain a competitive advantage in the future of e-commerce.”
Retailers play a pivotal role in accelerating the adoption of out-of-home delivery. According to the research, 52.3% of shoppers would opt for OOH delivery more frequently if it were offered as a standard option at checkout. This underscores the need for retailers to make OOH delivery a default choice to meet consumer demand and stay competitive.
Find out more about Sendcloud here
https://couriernews.co.uk/blog/shipping-costs-have-more-shoppers-turning-to-out-of-home-delivery/