Germans Want to Pay Less for Online Shipping

Sendcloud has released the “E-Commerce Delivery Compass,” created by the market research institute Nielsen. The results reveal the following insights: Decreasing willingness to pay for shipping costs while maintaining high demands for flexible delivery conditions and the highest return rates. The level of shipping is crucial for success.

(Munich) German consumers are becoming increasingly cost-conscious when it comes to shipping costs for their online orders. For a 50-euro order, they are now willing to spend only 4.30 euros. Nevertheless, many German consumers still have high expectations for shipping services and appreciate fast deliveries as well as high flexibility in delivery. German online shoppers are also the “return masters” in a European comparison and therefore primarily desire convenient and free return processes. This is evident from a new study published by the all-in-one shipping platform Sendcloud, which surveyed 7,873 consumers from eight European countries.

Shipping Costs Hinder Purchase Decisions

High shipping costs continue to be one of the main reasons for cart abandonment during online shopping. Up to two-thirds of German consumers abandon their shopping carts without completing a purchase if the shipping costs are too high. The amount consumers are willing to pay is heavily dependent on the value of the individual order: For an order of 15.00 euros, the German consumer is willing to pay 3.10 euros, while for an order of 150.00 euros, it is 5.40 euros. Compared to the previous year, consumers in Germany have become much more cost-conscious regarding the shipping of their online orders: In 2020, they spent an average of 3.40 euros and 5.60 euros on shipping their online orders.

Still High Expectations for Delivery Services

However, it is noticeable that while consumers want to spend less on shipping, they still have very high expectations for delivery service. In addition to shipping fees (87 percent), delivery time (71 percent) and delivery flexibility (58 percent) are considered important delivery criteria. Consumers increasingly want to decide for themselves where, when, and how their order is delivered. While still over two-thirds of consumers (66 percent) opt for standard delivery, 35 percent choose delivery on their desired day. Customers can select the delivery date themselves. Additionally, other premium services such as weekend delivery (19 percent), same-day delivery (11 percent), and evening delivery (19 percent) are becoming increasingly popular.

German Online Shoppers are the Return Masters in Europe

Not only do German consumers have high expectations for delivery, but they also have high expectations for returns: In Germany, the return rate for online-ordered goods, especially in the categories of “fashion and accessories,” is much higher than the European average: 65 percent of German online shoppers return goods to the retailer if they are not satisfied. The European average return rate in this case is only 52 percent.

Therefore, the return conditions offered by online retailers—from the cost to the maximum waiting time for a refund of the purchase price—are a crucial factor for many consumers in Germany when making a purchasing decision. If an online shop offers convenient and free return processes, the likelihood of more frequent orders increases. German customers are thus not only very demanding when it comes to delivery service and low shipping costs but also regarding the return of products.

Shipping Service Level Becoming Increasingly Important for Success

Rob van den Heuvel, CEO and Co-Founder of Sendcloud, concludes from the survey results: “Shipping has become one of the most important decision criteria in e-commerce. If a package is not delivered on time or if the shipping costs are too high, online shops risk losing their customers. Given that consumers have very high expectations for delivery while wanting to pay little for shipping, it has become more challenging for online retailers to compete with e-commerce giants like Amazon and Zalando. Collaborating with multiple carriers can help improve service levels while also reducing shipping costs. For online businesses that want to retain their customers in the long term, this is the significant challenge today.”

Study Methodology

For the “E-Commerce Delivery Compass” study, the market research institute Nielsen surveyed 7,873 participants from eight European countries (Germany, Netherlands, Belgium, France, Austria, Italy, Spain, and the United Kingdom) in June 2021. 1,002 of the study participants are from Germany.

The complete results of the study provide insights into the latest trends in e-commerce logistics and are available for download at the following link:

https://www.sendcloud.de/e-commerce-lieferkompass-2021

Graphic: © Sendcloud