What to Do to Meet the Expectations of Buyers The Dilemma of Online Retailers
In 2007, about 71% of online retailers delivered their merchandises to their buyers for free if they reach a minimum quantity or amount.
About 37% of these ecommerce sites have delivered goods for free unconditionally. Since buyers got spoiled that way, they expect the same offers come Christmas season on 2008, when they are expected to do their online shopping again.
But, online sellers cannot accommodate the same amenities anymore because of the market slowdown and the lingering economic crisis. So what can they do now? Be more creative – that’s one. Here are some other things they can do too:
• Maintain the minimum purchased amount required for the free shipping, or increase it. The regular buyers will still welcome the discounts but they will get a little disappointed that there was a better deal for them last year.
• Work on other marketing promotions instead of the free shipping if it is not really viable. Transportation costs continue to be high for freight services so that could really kill one’s margins if they insist on offering free shipping.
• Lower the price-spread or give small discounts to those who opt for 2-day shipping or express overnight freight.
• Do some creative and unique product bundling, which could help buyers minimize their shopping routines. This will encourage the buyers to buy more, therefore subtly pushing them to the minimum amount for free shipping. This helps the retailer retain a good margin while still satisfying the whims of the buyers.
• Create loyalty programs to build a group of active and regular buyers from whom you can get regular business with. This will encourage repeat business or repeat sales, which is good for the retailer.
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