Why Free Shipping Promotions Could Hurt Retailers
Before you know it the holiday season is here and people will be rushing to stores online and off for their Christmas gifts. Based on last year’s offerings online, Internet shoppers will expect to get the same kind of promotions this year despite the ongoing economic crisis.
One of these valued promotions is the free shipping offer from online stores, which prove to be the main preference of online buyers.
According to the Conference Board and the TNS, 90 percent of all consumers are enticed to do their shopping online because of the free shipping promotions of sellers. Only about 73 percent shop because of the discounts and 50 percent because of the products.
In addition to these statistics, Shop.org found out that people use online stores for last minute shopping in 2007. There are about 35 percent of these shoppers that go to the Internet at the last minute and they value the free shipping offers.
Now that there is much need to scrimp on budget since there is a significant slowdown in the market, online shops that have offered the free shipping promo in 2007 are faced with the pressures of offering the same one come holiday 2008.
The uncertainty in the economic status makes it a bit harder to decide on these days.
Shop.org’s records show that there are about 71 percent of online shops that have offered the free shipping come-on with minimum orders. About 37 percent of these online sellers have given free shipping without any conditions at all. So, for this year, retailers are a bit worried on how to keep up with the expectations.
An alternative to the promo is to reduce the discounts given to cover for the free shipping. Others who do not agree on giving free shipping argue about the convenience and the savings that buyers already get when they buy online instead of consuming gas driving to the stores.
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For sure this time around, discounts, free shipping and all the other promotional tools are going to be difficult for retailers to offer. So one can see how the offerings of past years may be a tough act to follow this year.
I would prefer to take the free shipping offers for both purchasing and selling.