Free next- and same-day shipping could make a shopper out of you.
Walmart WMT, -0.23% on Tuesday announced free “NextDay” delivery on 220,000 commonly purchased items, hot on the heels of Amazon AMZN, +1.71% offering free one-day delivery to its Prime members, who pay $119 per year. Consumer psychologists say you should think twice before clicking buy, as the “free shipping” option and instant gratification will make you even more likely to spend.
“Next-day delivery causes shoppers to buy more items, and to buy items more often from the retailers,” said consumer psychologist Bruce Sanders, author of the book “Retailer’s Edge.”
Walmart debuted free two-day shipping on $35-and-up orders in 2017. Competitor Target TGT, -0.62% also offers free two-day shipping at the $35 minimum, while non-Prime Amazon customers get free regular shipping on eligible items totaling a $25 minimum. Amazon introduced Prime two-day shipping in 2005.
Walmart customers must hit a $35 minimum on eligible items in order to receive the free next-day shipping. What if your bill only comes to $30? Sanders said it will encourage you to reach the free-shipping minimum. It may sound counter-intuitive, but spending that extra $5 can make you feel like you’re getting a discount. Consumers, consumer psychologists say, love anything with the word “free.”
“People always like to get things faster,” Peggy Sue Loroz, a consumer psychologist and professor of marketing at Gonzaga University in Spokane, Wash., told MarketWatch. “They start thinking, ‘What else can I throw into this basket? Oh, we’re kind of getting low on shampoo. The kids are going to need new socks.’” That list could go on and on.
Free shipping is a big incentive for click-happy consumers. Nearly eight in 10 people cite free shipping as a factor that would make them more likely to shop
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