Today, we announced the findings of our 3rd annual Holiday Survey, which sheds light on shoppers’ habits and preferences surrounding gift delivery during the holiday season. The survey reveals that consumers have higher expectations for delivery when purchasing gifts versus items for themselves, and that they’ll favor retailers with same-day delivery options during the holidays.
An astounding 91% of shoppers are concerned about gifts being delivered on time during the 2018 holiday season, a 6% increase over the number who shared this same concern last year. Yet U.S. consumers continue to anticipate doing last minute shopping during the holidays. Fast and on-time delivery that upholds the quality of a gift is of the utmost importance. 42% of consumers find same-day delivery to be particularly valuable when purchasing a gift, and they’re willing to pay for it.
The Rise of Same-Day Gift Delivery
The survey findings show that over half of consumers are more likely to purchase gifts from retailers that offer same-day delivery during the holidays. Consequently, cart abandonment due to slow delivery options for gifts is on the rise. 67% of consumers have abandoned a gift purchase during the holiday season for this reason (a 16% increase from 2017).
Expedited delivery options for gifts are important to consumers, and they’re willing to pay for it. Nearly a third (31%) have purchased a gift in the last year that was delivered same-day. Additionally, customer loyalty has shown to increase beyond the holiday season after experiencing same-day delivery for a gift. 75% of consumers are highly likely to shop with a retailer again after purchasing a gift that arrived same-day.
Accommodating Last Minute Shoppers
Even the most organized people end up doing at least some last-minute gift shopping during the holiday season, and most of the respondents from Dropoff’s survey are already planning on it. 77% of consumers say they plan to do last minute holiday shopping in 2018, which is a 15% increase from those who were planning to last year. Given the time constraint, 92% of last minute shoppers are concerned about their gifts being delivered on time.
Last minute holiday shoppers are 78% more likely to purchase gifts from retailers that offer same-day delivery. They’re also 39% more likely than those not planning to shop last minute to abandon a purchase if the delivery options are slow.
Find more stats on last-minute shoppers’ habits in Dropoff’s new ebook!
The Cost of Negative Gift Delivery Experiences
If something goes wrong with a gift delivery (i.e. the package is damaged, the wrong item is delivered, the gift arrives late), consumers won’t bring their business back to that retailer. Only 20% of consumers are likely to purchase from a retailer again after a negative delivery experience. Regardless of who actually delivers the gift, be it a third party delivery company or the retailer itself, consumers tend to blame the retailer for negative delivery experiences. 80% of consumers feel it reflects poorly on the retailer if a gift arrives late, and 74% feel it reflects poorly on the retailer if a gift arrives damaged.
While 49% of consumers don’t have a preference for who delivers a gift as long as it arrives on time and in good condition, they also report not trusting traditional carriers or crowdsourced, peer-to-peer services to deliver gifts. 52% of consumers trust FedEx to deliver gifts and only 12% trust peer-to-peer services with gift delivery.
Online vs. In-Store Gift Shopping Preferences
Same-day delivery isn’t a demand exclusive to online shoppers. 44% of consumers who prefer an in-store experience when shopping for holiday gifts have purchased a gift in the past year that was delivered same-day. That’s compared to 32% of consumers who prefer shopping for gifts online.
Online gift shoppers, however, are 39% more likely to recommend a retailer after purchasing a gift that was delivered same-day. Yet, they’re also less forgiving when it comes to negative delivery experiences. Consumers who prefer shopping for gifts online are 28% less likely to purchase from a retailer again after a bad delivery experience.
How Retailers Benefit From Meeting Holiday Delivery Expectations
The Expectation: Same-Day Delivery
71% of consumers are “highly likely” to recommend a retailer to others after purchasing a holiday gift and having it delivered the same day.
The Expectation: Real-Time Tracking
85% of consumers are more likely to purchase from a retailer again, and five times more likely to recommend a retailer to others, if their holiday gift purchase can be tracked in real-time throughout the delivery.
The Expectation: Delivery Arrives on Time
90% of consumers are likely to recommend a retailer to others after purchasing a holiday gift that arrives on time or early.
Stand-Out Consumer Segments
Millennials are 118% more likely to have paid extra for same-day delivery on a gift. They’re also 48% more likely to purchase gifts from retailers that offer same-day delivery during the holidays (59% of millennials vs. 40% of non-millennials).
45% of luxury shoppers are likely to have purchased gifts in the last year that were delivered same-day. That’s 105% more than non-luxury shoppers. They’re also 23% more likely to purchase gifts from retailers that offer same-day delivery during the holidays (58% of luxury shoppers vs. 47% of non-luxury shoppers).
Holiday Gift Delivery Solutions For Retailers
By offering fast, convenient delivery options during the holidays, retailers stand to gain the loyalty of consumers even after the decorations have been stored away. While consumers continue to expect same-day delivery for gifts, they’re also expressing a desire for real-time tracking and a growing concern about the quality of deliveries.
Between the influx of shoppers during the holidays and growing need for same-day delivery, meeting gift delivery expectations isn’t easy for retailers. Dropoff helps retailers conquer these challenges by providing above-and-beyond service along with features like real-time tracking, flexible delivery options, and professional, customer service-oriented drivers.
The findings presented here are the result of a June 2018 study of 2,064 U.S. consumers who answered “Yes” to the initial question, “Do you ever purchase gifts that need to be delivered?” (confidence level 95%).
Discover more stats regarding consumer delivery preferences and holiday shopping habits in Dropoff’s new ebook.