Wary Online RetailersStep Up Offers

Scott Santschi

Megan Guild

2007 Holiday Season

Expected to be weakest growth since 2002

Number of NEW online customers is leveling off

Online retailers pushing specials and promotions to attract new customers

Black Friday and Cyber Monday

Cyber Monday

Monday after Thanksgiving

Online retailers offering special one-day or two-day sales to kick off shopping season

Online only sales

Free shipping

Competitors having discount wars

Some participants…

Toys ‘R’ Us and eToys.com

Blue Nile Inc. jeweler

Target

Circuit City

Sears Holdings

Crate & Barrel

The Discovery Store

Overstock.com

The Online Surge

41.4 % of online retailers offering free shipping with no conditions. 36% last year30% increase in Cyber Monday deals in two years. From 42% up to 72%More than half of adults are expected to shop online at workShrinking holiday budget for 2007

Online Sales off to a good start

Already this holiday season black Fridays online sales grew to 22% to $531 million.

Cyber Monday is expected to exceed $700 million.

Shopping Online

High gas prices are leading many consumers to shop online and take advantage of promotions such as free shipping.

Due to the busy lifestyle people are living now days online shopping has become more convenient for the average consumer.

Many customers are saying that shopping online makes them shop more sensibly and stick to a budget.

Promotions

L.L Bean is having free shipping on all their products without a minimum purchase through the holiday season. They are also offering online only sale items. Blue Nile is offering free FedEx overnight shipping. Endless.com is offering ‘negative $5 overnight shipping and free shipping with an additional $5 off a customers total order when shipped overnight. Amazon.com is offering 99 cent gift wrap in addition to free Super Saver shipping on orders $25 or more.

Sources

http://www.topix.net/content/ap/2007/11/wary-online-retailers-step-up-offers