Walmart WMT, -0.41% on Tuesday announced free “NextDay” delivery on 220,000 commonly purchased items, hot on the heels of Amazon AMZN, +1.69% 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.
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.”
Another study by the marketing company Retention Science concluded that people actually choose free shipping over a dollar discount. They may see it as a more lucrative perk, and it makes their online shopping experience more seamless, just like “one-click” shopping.
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