Transcript Wary Online Retailers.ppt

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
http://www.topix.net/content/ap/2007/11/
wary-online-retailers-step-up-offers