“The consumer preference for free shipping over fast delivery, and the willingness to build bigger baskets to hit the threshold, is a significant behavioral shift that has a sizable impact on cart conversion and average order value,” said Jason Brenner, senior vice president, digital portfolio, Swifterra. “As the holiday season approaches, the question is not whether retailers can afford to offer free shipping—it’s whether they can afford not to.”

While consumers prefer not to have a minimum dollar amount to qualify for free shipping, most are willing to spend more to avoid paying for shipping. This presents an opportunity for merchants to improve sales by setting a higher but attractive minimum threshold, enhancing the customer experience and encouraging larger cart sizes without deterring purchases.

Based on the data, the winning formula for securing higher conversion rates includes a combination of free shipping, free returns, accurate tracking, and on-time delivery.

The white paper also highlights that despite recent economic headwinds, convenience is still valuable for today’s consumers, many of whom are willing to pay extra for same-day or next-day delivery. Forty percent of consumers prefer next-day home delivery from local retailers, far outweighing in-store pickup (19%) and curbside options (18%). Furthermore, 55% of consumers are willing to pay for same-day delivery, with 45% willing to pay for next-day delivery.