REPORT
Exclusive insights from
the UK's top 100 retailers
Learn how to reduce costs and boost profits with
data-driven delivery and returns strategies.
The delivery and returns strategy for e-commerce leaders in 2025
Is your retail brand shifting the focus from top-line growth to business profitability? If so, pricing your e-commerce delivery and returns must be one of the biggest questions your team wants to answer before 2026.
- Real numbers that matter. See how your delivery costs and return rates compare to the UK's top retailers and what to fix first.
- Understand what really drives delivery choices. Forget fast and cheap — 35% of customers now want delivery that fits their schedule, including preferred carriers, flexible windows, and pickup options.
- More than a third of UK shoppers want greener delivery options. See how to tap into this 37% without your logistics costs going through the roof.
Is your retail brand shifting the focus from top-line growth to business profitability? If so, pricing your e-commerce delivery and returns must be one of the biggest questions your team wants to answer before 2025.
More than price and speed
It was previously believed that price and speed were the primary factors influencing delivery choices for online shoppers. Recent data, however, suggests that it's only part of the story.
While 32% of shoppers choose the cheapest delivery option and 17% are ready to spend more for the fastest delivery, 35% of customers do not have a clear preference for either speed or price. For the remaining 15%, delivery decisions are driven by specific factors like trusted carriers, pick-up availability, named day delivery, sustainable choices, etc. We have also found that 34% of customers are likely to change their delivery preference on repeat purchases.
Research shows that offering and visualizing 3 to 5 delivery options is optimal, providing flexibility without overwhelming customers and improving checkout conversions — brands that offer multiple delivery options see a 27% checkout conversion rate increase.
The end of free shipping?
Statistics reveals that UK consumers prioritize delivery cost before availability and speed. While free delivery options seem essential for competitiveness, they can be financially challenging for retailers.
About 59% of UK shoppers expect retailers to offer free delivery at checkout, but 38% say it depends on the type of product, and 30% of customers are willing to pay for delivery even when there's a free option, meaning they are ready to splurge on added value.
A/B testing is crucial for refining delivery strategies. Defining what to test is essential, as balancing conversion rate, average order value (AOV), and shipping revenue is tricky — positive outcomes in all areas are rare. Understanding the competitive landscape and how shipping price tweaks affect revenue is key.
Introducing a free shipping threshold, with careful calibration to avoid a significant drop in conversions, helps retailers avoid loss-making transactions, especially with low-margin items — 60% of customers say they will add items to cart to avoid delivery fees.
Some brands, like NET-A-PORTER , offer free delivery as a perk for customers who reach higher tiers in their loyalty programmes, encouraging frequent shoppers to maintain their tier status.
Effective strategies for reducing the burden and impact of returns
Get a free copy of Delivery and Returns Pricing Strategy 2024 by Harper and Ingrid to keep reading about the use of exchange platforms, product feedback analytics, engaging with serial returners, dynamic return windows, wardrobing prevention, and much more.
- 100 top UK retailers;
- Over 130 million deliveries;
- Data, insights, analysis;
- No fluff, just facts.
Delivery and returns as a strategic advantage
The delivery and returns offer and how the options are priced has become one of the main questions retailers are seeking to answer.
That's why we created this report — explore what the industry says about achieving the best customer experience in the most profitable way.
1. Insights
Insights gained from conversations with 45 of the UK’s top retailers as part of Harper & Ingrid’s breakfast series on Delivery & Returns pricing strategy.
2. Analysis
We analysed online delivery and returns offerings from UK's top 100 retailers the likes of ASOS, Boohoo, and Next.
3. Data
Data from over 130 million deliveries across Harper and Ingrid platforms.
Trusted by 250+ retailers
