Delivery costs increasing

As ecommerce penetration surges, the cost of delivery and retailer-advertised delivery costs are increasing, according to a new report from Shippit. Since 2018, delivery costs for standard shipping have increased from $9 to $10.26, while retailer-advertised delivery estimates have surged from 2 days to 5.6 days. For express delivery, they have increased from $12 and 1.4 days, to $14.24 and 2.3 days. 

However, actual delivery times are decreasing, with many retailers appearing to inflate their estimates to avoid falling short of customer expectations. Today, the average delivery takes just 2.2 days; less than 2.6 days in 2023 and considerably less than the 5.6-day estimate that retailers advertise.

Based on research of thousands of consumers and retailers, and a data analysis of hundreds millions of orders, the State of Shipping report also found that:

• Free delivery has decreased significantly, falling from 81% of retailers in 2018 to 70% in 2024;
  • The average minimum spend threshold to qualify for free delivery has increased 20%.
• In 2018, 49% of retailers provided free returns, but that number has now dropped below 20%.
• There has been a 136% increase in express shipping since 2018, as consumers prioritise getting their goods as fast as possible.
• However, there is a growing disparity in the supply and demand of same day delivery, with just 9% of retailers offering it, yet two in three (61%) customers would happily pay for it