The effect of threshold free shipping policies on online shoppers' willingness to pay for shipping

Huang, Wen‐Hsien; Shen, George C.; Liang, Che-Ling

doi:10.1016/j.jretconser.2019.01.015

Cited by 31 publications

(37 citation statements)

References 40 publications

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“…The consequences of delivery in light of the expansion of online shopping has been widely recognized [9][10][11][12][13][14][15][16]. Given the latest technological developments in e-retailing, this study advances our perception of delivery efficiency in Bangladesh's online shopping setting.…”

Section: Introductionmentioning

confidence: 89%

“…In the online shopping context, delivery time refers to the time between order placement and delivery [65,66]. On-time delivery is considered one of the most important elements leading to success in the e-commerce market [15,67]. The outcome benefits that result from delivery efficiency include customer satisfaction, e-trust, e-loyalty, repurchase intention, value perceptions, and willingness to pay more [9][10][11][12][13][14][15].…”

Section: Delivery Efficiency Online Customer Satisfactionmentioning

confidence: 99%

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Will Consumers Pay More for Efficient Delivery? An Empirical Study of What Affects E-Customers’ Satisfaction and Willingness to Pay on Online Shopping in Bangladesh

Saha

Zhuang

2020

Sustainability

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The delivery of products to the end consumer has been widely considered in the e-commerce sector as new challenges to reach customers and provide them with timely and efficient delivery have surfaced. Less focus has been given to information about delivery efficiency that impacts online shoppers’ relations with e-retailers. This study’s research model builds on the extended unified theory of acceptance and use of technology (UTAUT-2) by adding the critical e-commerce variables of delivery efficiency, cost-saving efficiency, and online purchase experience (shopping satisfaction and subsequent willingness to pay). The conceptual model was tested, and samples were collected using an online survey hosted on Google Forms using e-mail in Bangladesh. The findings show that consumers’ willingness to pay is enhanced by satisfaction with online shopping and delivery efficiency. The study also contributes insights into how cost-saving efficiency affects online customer satisfaction and the intention to repurchase. Also, by applying hierarchical regression analysis, this study contributes to understanding how e-retailers can provide a functional online experience for customers. Finally, our findings offer guidelines to e-retailers regarding increasing shopping satisfaction, the intention to repurchase, and the willingness to pay more.

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Section: Introductionmentioning

confidence: 89%

Section: Delivery Efficiency Online Customer Satisfactionmentioning

confidence: 99%

Will Consumers Pay More for Efficient Delivery? An Empirical Study of What Affects E-Customers’ Satisfaction and Willingness to Pay on Online Shopping in Bangladesh

Saha

Zhuang

2020

Sustainability

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show abstract

“…To guide the e-tailers to choose the best solution, Gümüs et al [23] propose a stylized game-theoretic model to capture the competitive dynamics between the partitioned and combined strategies. Based on the dual entitlement principle, Huang et al [4] developed a conceptual model to examine the possible influence on the relationship among threshold level, freight, and delivery time.…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, the discount of the product will affect the brand of goods, and the shipping-fee discount will not. e extant literature indicates that the optimization of the transportation costs is significant enough to improve the sales volume of e-tailers [4,31]. However, even though researchers can detect such effects from the shipping fee, there is no guideline regarding the shipping fee and the best set of products to recommend.…”

Section: Literature Reviewmentioning

confidence: 99%

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Maximizing E-Tailers’ Sales Volume through the Shipping-Fee Discount and Product Recommendation System

Guo

Zeng

et al. 2020

Discrete Dynamics in Nature and Society

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E-tailers can impact customers’ order incidence and cart size by offering an attractive shipping fee; they can also influence customers to purchase other products using a recommendation system. This article provides a combined model in which the shipping-fee discount and product recommendations occur jointly to maximize the sales volume of e-tailers. Selection of recommended products and discount of shipping fee are the dynamic issues involving the complexity of business environments. The proposed model first determines the optimal shipping-fee discount to attract customers and then establishes the most suitable product recommendation list to encourage customers to spend more money on other products. Through the use of a shipping-fee discount and simultaneous product recommendations, e-tailers maximize the sales volume. As for consumers, they can always get additional savings from the subsequent shopping process because the product’s shipping fee is lower than the original shipping costs. Experimental results indicate that the proposed approach is feasible and better than alternative methods for achieving sales volume maximization. Furthermore, sensitivity analysis validates the stability of the proposed model in the face of an uncertain environment. Therefore, using the shipping-fee discount and product recommendation system as a united marketing strategy can maximize e-tailers’ sales volume.

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Free shipping policy for imported cross-border e-commerce platforms

et al. 2022

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The effect of threshold free shipping policies on online shoppers' willingness to pay for shipping

Cited by 31 publications

References 40 publications

Will Consumers Pay More for Efficient Delivery? An Empirical Study of What Affects E-Customers’ Satisfaction and Willingness to Pay on Online Shopping in Bangladesh

Will Consumers Pay More for Efficient Delivery? An Empirical Study of What Affects E-Customers’ Satisfaction and Willingness to Pay on Online Shopping in Bangladesh

Maximizing E-Tailers’ Sales Volume through the Shipping-Fee Discount and Product Recommendation System

Free shipping policy for imported cross-border e-commerce platforms

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