The assessment of cart stacking as a response to free delivery thresholds within South Africa's e-commerce

Abstract

This study explores the phenomenon of cart stacking within South Africa's e- commerce landscape, particularly in response to free delivery thresholds set by online retailers. The study delves into whether the allure of free shipping prompts consumers to alter their purchasing behaviour and basket size to meet the minimum spend required for free delivery. It aims to identify the demographic profile of cart stackers, the types of items they add to their carts, and the underlying motivations for their actions, including factors like cross-selling, up-selling, and habitual buying patterns. Despite the abundance of research on cart abandonment and free delivery incentives, there's a notable lack of studies focusing on cart stacking from a South African perspective. Given the burgeoning e-commerce market in South Africa, projected at a growth rate of 9.04%, in 2024 (Statista, 2024) understanding cart stacking behaviours is crucial for retailers looking to optimize revenue and profit margins. The research employs a mixed-method approach, incorporating both qualitative and quantitative analyses to offer a comprehensive view of the drivers behind cart stacking. The research employs a mixed-method approach, incorporating both qualitative and quantitative analyses to offer a comprehensive view of the drivers behind cart stacking. The quantitative results gathered results from 600 respondents, via an electronic survey. The qualitative interviews comprised of 9 in depth interviews, where respondents were frequent shoppers with a high level of income, the qualitative research was done to support the quantitative results in a two phased research design , allowing for further richness in the findings. The research examines how cart stacking aligns with various customer decision-making processes and how internal and external factors influence these behaviours. The study examines how cart stacking aligns with various customer decision-making processes and how internal and external factors influence these behaviours. Expanding on existing literature and exploring South African e-commerce customers' nuanced behaviours, this study aims to shed light on the strategic implications of free delivery thresholds and the factors influencing cart stacking. It also considers the potential impact of these behaviours on e-commerce practices, offering iii | P a g e recommendations for retailers to better cater to the needs of their customers and encourage more strategic purchasing decisions