Free Shipping is Key for Online Retailers

Shipping costs are a big factor in the decision to buy online, according to a study done by The Conference Board and TNS, a market research firm. More than 90 percent of consumers surveyed said
free shipping would be an incentive to spend more online this holiday season. Thirty-five percent said free return postage would increase their online holiday purchases. More than 65 percent also said special offers or deals not available in stores would boost their online spending.
Consumers are saving their bigger purchases for in-store shopping. Only 5 percent of households that shop via the Internet said they planned to spend more than $500 online this holiday season. About 30 percent said they planned to spend less than $100 online. But 22 percent of online households said they planned to spend more than $500 in stores and only 16 percent said they would spend less than $100 in stores. Books, movies and clothing top the shopping lists of most online shoppers.
The study also indicates that almost as many women as men are looking for bargains online – a change from previous years. Both sexes said the most frustrating aspects of shopping on the Internet are shipping charges, not being able to physically handle merchandise, and having to give out credit card information.