Shipping subscriptions have become a powerful tool for retailers seeking to boost sales in an uncertain consumer spending climate. A recent study conducted by shipping platform Sendcloud has shown that more than half of consumers (56%) are willing to increase their orders from marketplaces if they offer shipping subscription packages. Additionally, 40% of respondents stated that they are more likely to order from marketplaces that offer subscription services.
The popularity of shipping subscriptions is already evident, with 41% of participants surveyed already investing in such services, and Amazon Prime being the top choice. What is even more interesting is that even consumers who shop infrequently, such as once every two weeks or once a month, are willing to pay for a subscription. The main incentive they seek from these subscriptions is free delivery, with 68% of respondents prioritizing this benefit. A smaller percentage (17%) value the option of same-day delivery, and only 10% are enticed by special discounts on products. However, consumers are only willing to spend a maximum of £10 per year on a subscription, likely due to the fact that they are already paying for multiple subscriptions as retailers and marketplaces continue to offer them. Popular services like ASOS Premier in the UK have gained traction, with consumers spending approximately £50 per month on such subscriptions.
The rise of shipping subscriptions can be seen as a strategic move by retailers to establish stronger connections with customers and foster increased loyalty to their webstores. By offering exclusive shipping benefits, marketplaces and retailers aim to become the preferred choice for consumers when making purchase decisions. This not only ensures repeat business but also increases the chances of customers choosing to buy products available on multiple sites from a specific retailer.
In conclusion, shipping subscriptions have the potential to significantly drive sales for retailers and marketplaces. By providing consumers with desirable perks, such as free delivery, these subscriptions can motivate customers to increase their orders and align their shopping habits with a specific retailer. As the popularity of such services continues to grow, it will be crucial for retailers to offer competitive subscription packages and stand out from the competition to attract and retain customers in an increasingly crowded marketplace.
Useful links:
– Sendcloud: Shipping platform mentioned in the study
– Amazon Prime: Popular shipping subscription service.
