Free Shipping Key To Brands Competing Online

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Online shoppers are a value-conscious bunch. If a retailer doesn’t offer a deal – free shipping, especially – consumers are less inclined to make a purchase.

Online measurement firm comScore concluded in its e-commerce data for 2009 that free shipping factored into more than 40 percent of e-commerce transactions during the holiday season.
 
Tuesday, December 15 ranked as the heaviest US online spending day in history at $913 million. About 10 percent of households did holiday shopping online. [more]
 
The largest online retailers, led by Amazon and Wal-Mart, gained the market share of e-commerce sales, proving that consumers tend to remain loyal to brands they have dealt with before. Amazon.com’s net sales increased 42 percent to $9.52 billion in the fourth quarter of 2009 thanks to robust Kindle sales and loyal shoppers.

Offering them free shipping is a small price to pay for long term repeat business.
 
Brands that enact an effective online consumer reach are in a better position to keep shoppers and grow their numbers virally. ComScore concluded that the online media channel is also an important driver of offline purchase behaviors. Smart brands retain a healthy online presence, as they understand consumers frequently establish their purchase process routines and build brand loyalty via the Internet.

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