Wary Online Retailers Step Up Offers

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Wary Online RetailersStep Up Offers

• Scott Santschi
• Megan Guild

2
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

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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

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Some participants

• Toys R Us and eToys.com
• Blue Nile Inc. jeweler
• Target
• Circuit City
• Sears Holdings
• Crate Barrel
• The Discovery Store
• Overstock.com

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The Online Surge

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

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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.

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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.

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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.

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Sources

• http//www.topix.net/content/ap/2007/11/wary-onlin
  e-retailers-step-up-offers