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Study: Shipping promos to drive holiday shoppers online

October 24, 2007

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Washington, D.C.—According to a Shop.org and Shopzilla study, the e-commerce sector will continue to receive a larger portion of consumers' incomes this year as one-third of online shoppers said they plan to do more of their holiday shopping online than they did a year ago.

Leading the online-sales drive will be a variety of shipping promotions, according to the 2007 "eHoliday Study," conducted by BizRate Research for Shop.org and Shopzilla. The most popular shipping promotion will be free shipping with conditions, which means a customer must purchase a particular item or spend a certain dollar amount before receiving the offer. The majority of retailers (78.6 percent) will offer this promotion for the 2007 holiday season.

Retailers will also use a variety of other marketing techniques to increase sales online: Nearly two-thirds (63 percent) will offer online-only sales this year, while others will tout "refer-a-friend" promotions (55.6 percent), repeat-buyer discounts (37 percent) and early-shopper discounts (35 percent).

According to the study, consumers' top reasons for shopping online instead of in stores is the ability to shop at any time of the day (58.5 percent), not wanting to fight crowds in stores (43.8 percent), the general convenience of shopping online (38.7 percent), the ability to compare prices online (36.2 percent) and the ease of finding items online versus in stores (29.9 percent).

Most important for consumers, however, is knowing that the Web sites they turn to provide good value for the money (which received a rating of 4.52 out of 5). Shoppers also like to see clear product descriptions (4.37), have a good sense of the merchant's reputation (4.31) and be guaranteed on-time delivery (4.28).

In addition, the study finds that retailers will be integrating their stores and Web sites more than ever this year as a way to increase sales company-wide. Four out of five online retailers with stores will offer in-store advertising for their Web sites (80.6 percent), and 75.8 percent will offer e-mail registration for customers who do not yet subscribe.

The eHoliday Study surveyed 2,695 online buyers (defined as anyone who has made an online purchase in the last 12 months) and 116 online retailers from Sept. 27-Oct. 8, 2007.
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