"Free Shipping" For The Holidays: Not So Fast

The economy is "bust", the "bailouts" are upon us, and who cares who fault it is. So what do e-commerce merchants do for the Holiday Season to get sales?

In the past "Free Shipping" worked wonders, but now e-commerce merchants have to think twice about absorbing this cost, as margins on products sold shrink.

I am no expert so I instead turn to friends of eTaildTail who are experts. 

Here is some great advice for e-commerce merchants who willl battle with the dilemma of how to "entice" customers withoiut providing free shipping and get away with it, during the holiday shopping season.

This is an important read!

-- Chip Arndt

From: Natalia Zumeda, Advertising Age

No Such Thing as Free Shipping?

Facing Rising Costs, Online Retailers Likely to Attach Strings to Holiday Promos

"Retailers counting on online shopping to buoy sales in a tight economy are wrestling with a big problem: free shipping.

Shipping discounts, which have become a mainstay of the holiday season, are being carefully analyzed by retailers as they weigh the benefits against the mounting costs. Transportation costs have skyrocketed in the last year, with diesel prices rising 50% year over year. In response, fuel surcharges applied by UPS and FedEx have more than doubled to 10.5% for ground packages and 34.5% for air packages..."

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Comments

[metalk12]

I agree shipping is never free. It is either part of the price or billed seperately. However, margins dropping and sales slow, it is going to be tough this holiday season for buyers and sellers alike. However, nothing is forever, we will be back riding high by this time next year.

[Amrendra]

Ya getting a discount in a such a perished economy is almost impossible rather it can be a market stunt from the sellers. however it will never for ever we have to watch for the better time.