The e-commerce delivery specialist ParcelHero has conducted
a study which revealed that free
shipping is the number one incentive pushing nine out of ten shoppers to
spend more money. Orders with the normal costs are 30% lower on average. 57% of
British customers say this feature is key to their choice of retailer.
David Jinks MILT, Head of
Consumer Services at ParcelHero
advanced that a compulsory plastic
bag-style charge will significantly discourage customers to spend online. He
argues that while the UK economy needs more an increase in consumer spending,
people are trying to hold to their savings because they are concerned about job
security. Moreover, the anxiety related to visiting crowded stores is still
prevailing.
Amidst of all this, the
government has announced that it is planning to introduce another tax on online
deliveries. According to analysts, this charge will be a minimum of £2 per
order or an additional 2% on the overall spend. This decision will definitely
have a psychological impact on customers and will affect their purchasing
habits.
Considering that free
shipping is such a huge incentive and with consumer confidence being
exceptionally fragile at the moment, experts are advancing that this move could
be disastrous. Not having to pay delivery costs is driving customer to spend
money and this might stop.
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