The number of companies offering free shipping this year has spiked compared to previous years. One of the reasons behind the spike is that surveys done last year by customers that made online purchases during the holiday seasons showed a strong inclination towards purchasing from companies that offered free shipping, especially when there was no defined minimum purchase. One survey even had as many as 85 percent of customers describing free shipping as either important or very important in influencing their decision to make the purchase. In addition, companies are now competing in the arena of fast free shipping-that is shipping within two days of making the purchase. More companies have begun to jump on this bandwagon this year than in any previous years.
Different Techniques Used
Amazon went against the grain slightly, increasing the purchase minimum from $25 to $35 for customers that opt not to sign up for an Amazon Prime account. Many brick and mortar establishments also decided to join in the online frenzy, choosing to supplement black Friday sales with items offered online for the same price. In addition, some companies such as Sears and Kmart offered fast free shipping when customers signed up for loyalty programs. This option is a win for both sides, as the programs are free for customers and increase the likelihood that online customers will return before their membership expires.
Ebay went a step beyond the rest, offering free same-day shipping to customers in San Francisco that purchased from certain local businesses. Though there is a $25 minimum purchase limit, this offer is valid up until Christmas Eve. Fast free shipping may just change the way that retailers do business throughout the holidays.