Consumers have the potential to drive demand in nearly every industry, and in the e-commerce world they’re speaking loud and clear when it comes to how they want their purchases delivered – free and fast. But when you put speed and cost head-to-head in the eyes of consumers, which is more important?


A recent study from Internet Retailer and Bizrate Insights dove into shipping expectations, and found that shoppers place a higher value on free shipping than they do on getting their purchases fast. The study surveyed 2,815 U.S. consumers and revealed that:

  • 50.2 percent value free shipping over fast shipping
  • 2.5 percent value fast shipping over free shipping
  • 47.4 percent see free and fasting shipping as equally important

As customer expectations have clearly moved to wanting – and often demanding – free shipping, retailers must find ways to deliver. But as they know all too well, free shipping is only “free” for the customer, so they need to find ways to absorb the costs.

There are many ways to do this, including strategies that can help reduce, as well as those that can help offset costs. And when used together in a well-designed shipping strategy, these approaches can even result in a net positive on the bottom line. As an experienced carrier that works exclusively in e-commerce and takes a consultative approach to working with retail clients, Newgistics is in a unique position to help retailers develop customized shipping strategies.

“…when you put speed and cost head-to-head in the eyes of consumers, which is more important?”

For example, the luxury apparel and accessories provider, DSTLD, partnered with Newgistics when it relaunched and needed free and fast shipping to compete with in-store experiences. The result? Strategies like diversifying carriers and outsourcing fulfillment to house merchandise in multiple locations closer to customers helped DSTLD offer free and fast shipping in a cost-effective manner. Now the company can economically delivery orders in two to four business days, regardless of a customer’s location.

To learn more about how Newgistics can enable free and fast shipping for online retailers, please