Shipping

As the retail industry continues to evolve and consumers are presented with ever-increasing options to complete their shopping journey, retailers must understand shopper preferences to stay competitive. This year, we surveyed 2,500 shoppers in the United States and Canada to understand shopper preferences and expectations. Where can retailers improve? Our results revealed that the basics still rule. In-store execution, favorable online shopping features, creating a shopping experience wherever the customer happens to be, and giving customers a personalized experience are most critical to consumers. In order to stay on top, here are some suggestions from our research.

Just in time for Christmas, Amazon.com and the U.S. Postal Service are teaming to make "every day an Amazon prime delivery day." The e-retailer announced Monday that it will be rolling out Sunday delivery services in Los Angeles and New York to customers who are eligible for free, two-day shipping. In 2014, the service will be expanded to the broader U.S., to include such cities as Dallas, Houston, New Orleans and Phoenix. For the cash-strapped Postal Service, news of more deliveries for one of the biggest retailers of the internet age can't be that bad.

MarketLive, an e-commerce platform provider, has released its annual online retailer survey and recommendations for the 2013 holiday retail season. Among the many report findings, MarketLive found that an overwhelming majority of holiday shoppers will respond to retailers’ promotions offering free shipping, and they will ultimately shop with the retailer who can guarantee an on-time delivery date and/or the best shopping experience. The survey sample included 1,000 consumer questionnaires. The report illustrates consumer survey results with tactical examples drawn from promotional campaigns by Nordstrom, Sport Chalet, Sephora, Lowe's, Home Depot, Pottery Barn, REI, Restoration Hardware, Amazon.com, Blue Nile and Francesca's.

Amazon.com has raised its free shipping minimum order to $35. The change came after a decade of free shipping to U.S. addresses on a minimum order of $25 on Amazon's site. It took effect Tuesday, just ahead of the holiday shopping season, according to Amazon Spokeswoman Julie Law. Amazon now finds itself in the mid-range of major retailers that offer free shipping on online orders. Wal-Mart and Target offer free shipping on many purchases of over $50, while Best Buy's minimum order is $25. Earlier this year, Amazon warned that its shipping costs were going to increase during the holiday season.

eBay on Tuesday said it plans to expand its same-day delivery service, dubbed eBay Now, to 25 cities next year, and it also launched a couple new features for its site that makes browsing more personalized. The company said eBay Now is now live in Chicago, and Dallas will follow within the following weeks. Next year, cities such as London will receive the service, bringing the total to 25. eBay already has offered same-day delivery in San Francisco and New York for about a year. 

For the typical e-commerce startup that's selling a physical product, shipping is often an afterthought. Compared to splashy marketing campaigns and new product features, shipping isn't exactly the sexiest topic. However, efficient shipping operations directly affect revenue and future growth, and companies that don't adhere to best practices run the risk of having increasing sales without raking in enough profits. Consider implementing these six tips:

Neiman Marcus Group is looking to revitalize its e-commerce business before the holiday season's fervor begins by offering permanent free shipping and returns year-round for all domestic purchases made through neimanmarcus.com and bergdorfgoodman.com as well as at retail locations. By removing some of the burdens that deter consumers from shopping online, Neiman Marcus may see a surge in e-commerce. Additionally, Neiman Marcus Group's move demonstrates that retailers are still adjusting to the digital sphere and determining the right balance between in-store and online.

The U.S. Postal Service proposed on Wednesday to increase its rates more than the standard, inflation-based cap that typically constrains price bumps, citing its financial condition and the uncertainty of legislative action to justify the emergency measure. Known as an "exigent rate increase," the Postal Service Board of Governors must demonstrate to its regulatory body — the Postal Regulatory Commission — "either extraordinary or exceptional circumstances" that require higher rates.

Dick's Sporting Goods is leveraging omnichannel fulfillment. Over the past four years, the retailer has rolled out omnichannel capabilities, providing the ability to create online orders in stores, create an endless aisle experience for customers, and ship orders placed in-store for free. In addition, Dick's has utilized vendors to ship directly to customers for several years, improving inventory turn.

Amazon.com has written and rewritten the rules of e-commerce since the late 1990s, and muscled more than a few traditional retailers into an early grave. Times have changed, however. Retailers large and small now have access to strategies and solutions that leverage their brick-and-mortar locations to fuel their e-commerce storefronts while increasing foot traffic at the same time. Better yet, the technology is available in the cloud, meaning lower capital expenditures and faster results.