The online retail sales in US will grow to $32 Billion in this year holiday season, an increase of 18% over 2005 holiday season, according to JupiterResearch forecast. A record 114 million users, a 6% increase over last year, will buy online in 2006 holiday season.
“Retailers can maximize their opportunity with online shoppers and especially last minute shoppers,” said David Schatsky, President of JupiterKagan. “One strategy is to use upgrades to free shipping strategically with customer segments that are particularly sensitive to shipping costs, and less aggressive offers to buyers who have purchased last minute at full shipping in the past.”
75% of shoppers said free shipping is the most important factor that determines where to shop online. According to the eHoliday Mood Survey by Shop.org and BizRate Research for Shopzilla.
"In terms of the promotions, much of what the e-retail people are thinking of doing revolves around free shipping," says Joan Broughton, VP of content and education, Shop.org. "That's a good choice considering most consumers say that that's what they're looking for."