Wary Online Retailers Step Up Offers Scott Santschi Megan Guild.

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Presentation transcript:

Wary Online Retailers Step 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 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

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 wary-online-retailers-step-up-offers