Fast delivery is losing to lower prices, ICSC survey finds

A new survey from ICSC suggests shoppers are becoming less willing to pay a premium for speed, as rising delivery expectations, return costs and fulfillment fees push value to the front of the purchase decision.

Conducted online from May 13 to May 15, among a demographically representative U.S. sample of 1,000 respondents, the “Cost of Convenience” survey found that consumers increasingly see convenience as something to be earned, not assumed, especially when lower prices are on the table.

ICSC said 90 percent of shoppers would accept slower shipping in exchange for savings, while 61 percent said lower cost matters more than convenience when shopping online. At the same time, 70 percent said retailers should offer shipping that is both free and fast, underscoring the tension between consumer expectations and retailer economics. The findings point to a shopper mindset that still values convenience, but only when the value exchange is clear.

According to the survey, 70 percent of online shoppers have abandoned a cart because of shipping costs, while 67 percent said return fees make them less likely to buy online. Another 65 percent said they have stopped, or would consider stopping, shopping with a retailer because of delivery fees, slow shipping or inconvenient returns.

The research also shows that the willingness to pay for speed is not evenly distributed. Millennials and Gen Z are the most likely to pay extra for faster shipping, at 78 percent and 74 percent respectively, compared with 32 percent of Baby Boomers. Half of Gen Z respondents said they have already stopped shopping with a retailer because of slow delivery, inconvenient returns or delivery-related costs.

Transparency may be one of retailers’ best tools for softening consumer resistance. ICSC found that 56 percent of shoppers believe retailers are not upfront about return fees or costs before purchase, while 71 percent said they would be more accepting of return fees if they were disclosed upfront.

Meanwhile, brick-and-mortar stores continue to play a practical role in this shift. ICSC said 57 percent of consumers value stores for avoiding shipping fees and wait times, 63 percent for immediate access to products, 61 percent for the ability to see or try items before buying and 44 percent for easier returns and exchanges.

“The cost of convenience has become a key part of the shopping decision. As the K-shaped economy continues to shape behavior, consumers are evaluating delivery fees, return policies, and fulfillment options alongside price, and those considerations increasingly influence where they shop and which retailers earn their loyalty. Our research shows that shoppers are willing to make tradeoffs when the value is clear, while also placing a premium on transparency and flexibility. Physical stores remain an important part of that equation because they help solve many of the practical challenges consumers encounter when shopping online," Tom McGee, president and CEO of ICSC, said in a statement.