Shoppers would rather wait longer for their grocery delivery than pay more for faster service, according to a new report from Mercatus.
That is the principal conclusion of new shopper behavior research from Mercatus, a Toronto-based grocery e-commerce specialist. The report said that many consumers simply avoid grocery delivery services because of higher costs and because consumers have a desire to select their own produce.
It is not the prices they pay for online products which turn consumers away, but additional service-related costs the report found.
One in five U.S. households used an online grocery delivery service during the prior month, according to the study. Among the households that chose not to use delivery, the top two reasons were tied at 62% each between “I do not want to pay for the extra charges, fees and tips” and “I like to select my own fruits and vegetables.”
The oldest customer group, those over age 60, was significantly more concerned with picking their own produce versus younger shoppers (75% vs. 53%), while the desire to avoid paying the service-related costs was the same across all age groups. Only one in seven households (14%) cited “the products are more expensive online than in the store” as a reason for not using a delivery service.
When deliveries happen, and what charges are involved, are also an important factor. When presented with a fixed fee of $9.95 for a large order (greater than $100), over 30% of customers selected to receive their order within 30 to 60 minutes. In addition, more than 40% selected to receive it within one to three hours, and fewer than 10% opted for the next day or later.
However, when offered a variable fee that scaled down as the delivery time was extended, the share of shoppers that selected delivery within the 30- to 60-minute and one- to three-hour windows declined by more than half, while over 40% of customers selected to receive the order next day or longer. Customers are much more likely to select a time slot later the same day, or even the next day, if that meant they could pay a lower delivery fee, Mercatus found.