Using Free Holiday Shipping to Reel in Shoppers

[mandy]

Shipping has become a hot button in the e-commerce marketplace. In fact, many retailers view it as the most significant deterrent to sales because many customers abandon their purchases once the shipping charges pop up on their screens.

"Often, companies cannot calculate shipping costs until customers finish placing their orders, and many times these charges scare them off," explained Ted Vaughan, assurance partner at the tax consulting and professional services firm BDO Seidman. A poll by Harris Interactive buttressed this point: Fifty-one percent of online buyers opted for retail store purchases just to escape online shipping and handling charges, and 49 percent reduced their purchases at certain online stores because of unexpectedly high or hidden shipping charges.

Aware of the problem, companies are trying to attract gift-givers and move them from window shopping to purchasing by plastering the words "free shipping" on their wares. Such promotions do attract attention: Ninety percent of the participants in the Harris survey said free shipping would draw them to a site; this was the No. 1 enticement, followed by online discounts (69 percent), free or "no-hassle" return policies, (64 percent), free gift wrapping (27 percent) and gift certificates (24 percent)...

full article: http://ecommercetimes.com/story/Reeling-...60371.html

[amy]

many customers abandon their purchases once the shipping charges pop up on their screens.

That's the primary reason we went to $5.95 flat rate/free shipping on orders over $100--there aren't any surprises during checkout

[valleygirl]

I'm offering free shipping Fridays this holiday season.

[mandy]

A related survey:

53.6% of merchants offered free shipping this Christmas shopping season, compared with 46.4% that didn’t.

The survey also reveals that 79.3% of web retailers required their customers to spend a minimum amount before they became eligible for free shipping. A total of 32.6% of retailers required customers to spend from $76 to $100 to qualify for free shipping, compared with 28.3% that required spending of $100 or more, 23.9% from $51 to $75, 6.5% from $26 to $50, and 8.7% $25 or less.

68.4% of chain retailers offered free shipping this holiday shopping season, compared to 60% of catalogers, 49.2% of online-only retailers and 45.5% of consumer brand manufacturers...

full article: http://www.internetretailer.com/dailyNews.asp?id=24835