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Published
Nov 7, 2017
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Deloitte holiday survey reveals free shipping tops consumer wish list

Published
Nov 7, 2017

Deloitte has released its 32nd Annual Holiday Survey, revealing insight into how consumers are demanding a fully integrated omnichannel experience. Free shipping and easy returns are top consumer expectations.



According to Deloitte, 51 percent of shoppers will be putting their holiday budgets towards online shopping, compared to 42 percent who will go in-store. Online shopping is the top preferred venue across all age groups and income levels, while mass merchants follow in second place.

Rod Sides, Vice Chairman, Deloitte LLP and U.S. retail, wholesale and distribution leader, said that consumers have adapted quickly to online shopping and their expectations have changed accordingly. At one time consumers looked online mainly for questions of price and convenience, but now they are trusting the online shopping experience to help them evaluate product value and, accordingly, are making larger purchase decisions.

Deloitte's survey revealed free shipping is the top benefit customers expect from online shopping. 9 out of 10 consumers said free shipping is more important to them this holiday season than expedited shipping. Another interesting consumer expectation is that 65 percent of shoppers believe they should get free shipping even if they place their orders after December 17.

Sides said, "The online experience has also redefined people's expectations of the physical store." It should come as no surprise, then, that online retail is outpacing in-store for customer preference.

With respect to omnichannel integration, 43 percent surveyed said they plan to use the buy online and pick up in store option retailers are offering. The key reason they will use this feature is to avoid shipping charges. Clothes, home appliances and electronics are the top categories consumers are planning to buy online and pick up in store.

Two thirds of shoppers cited generous return policies as another reason they will buy online. Shoppers value the option to return to any store, followed by return options other than store credit. Half those surveyed said they wanted extended return policies ranging from 30 to 90 days, and 41 percent said they wanted to be able to make returns without receipts.

The study also revealed millennials will shop at off-price retailers, Gen Z will shop at fast fashion apparel retailers, and Gen X and Boomers will shop at traditional department stores. Seniors and households earning less than $50,000 will shop at supermarkets.

To complete the study, Deloitte sampled 5,000 US consumers in September. The study has a margin of error of 1 to 2 percentage points.

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