While consumers value speed in making online purchases, price remains a key driver in their decisions, according to a UPS Capital report. The report shows that almost two-thirds (64%) of 1,000 consumers surveyed indicate they are more likely to buy from a retailer that offers better prices over free expedited shipping.

The 2024 Need for Speed report, released December 10, nevertheless indicates that consumer demand for shipping speeds of two days or less is increasing, and that merchants “face a delicate balancing act in meeting these consumer demands: providing expedited delivery while managing rising operational costs.”

In the past five years, the report found, the number of merchants offering two-day shipping has increased by 47%. While 43% of consumers surveyed say they receive their online orders within two days on average, even more expect this to be the norm. Only 18% feel that two-day shipping is unnecessary.

The demand for even faster delivery is also growing. Next-day shipping has increased by 58%, and same-day shipping has surged by an impressive 164% in five years, UPS Capital said.Nearly three in five (59%) merchants surveyed believe Amazon is responsible for the shift in quick shipping standards. “The eCommerce giant has set a high bar, forcing smaller retailers to adapt or risk losing customers,” the report went on.

For 61% of consumers surveyed who have shopped with cut-price brands such as Temu and Shein, price has been the influencing factor when shopping globally.

Nearly half (47%) of participants say they would be more likely to shop with international retailers, rather than domestic giants like Amazon or Target, if those retailers offered free expedited shipping on all orders. However, the business model adopted by Temu and Shein – as well as a new sales channel proposed by Amazon to rival them, Amazon Haul – usually means goods take several days, and even weeks, to arrive.

The report, commissioned by UPS Capital, includes insights from 500 e-commerce merchants and 1,000 U.S. consumers.