The Must Have for Holiday 2011? Free Shipping
Forget Cabbage Patch Dolls or Tickle-Me-Elmos. The biggest wish list item this coming holiday season for consumers will be free shipping.
Panelists at eTail Boston earlier this week agreed that free shipping continues to be an enormous factor when it comes to converting online shoppers to buyers.
Jay Schaffer, CMO of California Delicious, noted that because of high gas prices people are making conscious decisions about where they shop. “People don’t want to drive 30 minutes to buy $6 worth of socks,” he said.
The holiday season typically accounts for about 40% of CBS Sports’ online store business, added Michael Merhab, vice president of ecommerce for CBS Interactive. Considering that an email promotion around July 4 offering free shipping pulled four-time better than other offers tested, he anticipates that trend continuing for the December holidays.
Of course, Schaffer added, you need to remember that shipping charges are typically equivalent to 20% of an order for most etailers. “Are you willing to give away a 20% discount at the holidays? And what if you’re 30% behind plan on December 7?”
Another potential hitch to keep in mind is that consumers aren’t the only ones feeling the pinch of rising gas prices. Shippers like FedEx and UPS are also feeling the pain, and that could mean fuel surcharges.
At eTail, speakers also touched on another possible financial drain down the road for online merchants
