As a longtime Amazon Prime member, I’ve come to expect my orders to arrive fairly quickly.
Sometimes, though, Amazon exceeds my expectations.
Not long ago, I placed an order for some first-aid supplies, expecting them to show up the next day. Roughly two hours later, my dogs started barking like lunatics — a sure sign that an Amazon delivery truck was pulling into my driveway.
My experience isn’t unusual. For years, Amazon has trained shoppers to expect quick delivery. And that promise of speed has been one of Amazon’s biggest competitive advantages.
The company has spent billions of dollars building one of the world’s largest logistics networks, making fast shipping a core reason millions of people subscribe to Amazon Prime and keep coming back for more purchases.
But consumers may be starting to rethink what matters most when they shop online.
A new survey from the International Council of Shopping Centers (ICSC) suggests that while shoppers still appreciate fast delivery, they’re becoming much more focused on saving money.
That’s an important shift that could have implications, not only for Amazon, but for nearly every major retailer that’s spent heavily trying to match its delivery speeds.
Consumers are putting savings ahead of speed
ICSC’s findings show that price is beginning to outweigh convenience for many online shoppers. Specifically:
- 90% of consumers would accept slower shipping if it meant saving money.
- 61% say lower prices matter more than convenience when shopping online.
- 60% are willing to accept slower shipping in exchange for savings, even though they still view free and fast shipping as the standard expectation.
“Our research shows that shoppers are willing to make tradeoffs when the value is clear, while also placing a premium on transparency and flexibility,” said ICSC CEO Tom McGee, as reported by Retail Brew.
Related: Big changes could be in store for Costco
For shoppers, the math is simple. If waiting an extra day or two saves several dollars on shipping or helps lower the overall purchase price, that trade-off becomes much easier to make, especially for non-urgent purchases.
The findings also reflect broader economic realities.
Even as inflation has moderated, many consumers remain cautious about discretionary spending and continue looking for ways to stretch their budgets. Saving money often outweighs receiving a package 24 hours sooner.
For Amazon, that’s a challenge because speed has long been one of the company’s strongest selling points.
Shutterstock
Amazon isn’t the only retailer facing this problem
Amazon’s success has forced nearly every major retailer to spend heavily on shipping and fulfillment in an effort to keep pace.
Walmart has significantly expanded same-day delivery and express delivery options while growing its fulfillment network to reach more U.S. households faster. The company has also invested in automation and regional distribution centers to reduce delivery times.
More Retail:
- Costco sees major shift in member behavior
- Retail chain shuts all locations as legal changes hit industry
- Costco makes major investment in online shopping for members
Sam’s Club has also expanded same-day delivery while investing in digital shopping tools and fulfillment capabilities designed to better compete with warehouse rivals and online retailers.
Target, too, has leaned heavily on same-day fulfillment through Drive Up and Order Pickup.
These investments made sense when delivery speed functions as a way to win customers. But if shoppers increasingly prioritize price over convenience, retailers may need to rethink how they compete.
That doesn’t mean fast shipping is going away. Consumers still expect it to be available, particularly for urgent purchases. The difference is that many shoppers may no longer be willing to pay a premium simply to receive an order a day earlier.
For Amazon in particular, that creates a more difficult balancing act.
The company has spent years racing to deliver packages faster than ever. But the next phase of competition may be less about shaving hours off delivery times and more about finding ways to lower prices without sacrificing profits.
Maurie Backman owns shares of Amazon.
