Oct 27, 2009
Online Retailers Promote Holiday SalesBy Business-Journal.com

Washington — The economy is not only impacting shoppers, but online retailers as well. This holiday season, shoppers can expect to see changes in retail marketing and promotions.

“Retailers know that times are tough so they have created promotions and incentives to help Americans save money this holiday season,” said Scott Silverman, executive director of Shop.org, which released its annual eHoliday Study conducted by BIGresearch. “From free shipping to Facebook, online retailers are combining new initiatives with tried-and-true tactics to make their companies stand out.”

With an understanding that many of today’s shoppers use Facebook and Twitter regularly and because these tools are more cost-effective than traditional advertising, 47.1% of retailers surveyed will be increasing their use of social media this holiday season. More than half said they have added or improved their Facebook page (60.3%) and Twitter pages (58.7%), while 65.6% have added or enhanced blogs and RSS feeds. In addition, to provide consumers with an extra incentive to start shopping, 34.3% say they will offer holiday deals earlier this year.

As another sign of the times, free shipping offers will abound. At some point in the season, 79.4% of retailers will offer free shipping with conditions — meaning customers must purchase a specific item or spend a minimum dollar amount — while 57.4% also plan to offer free shipping without conditions. Some 35.7% said their budgets for free shipping are higher than last year, and 30% said free shipping offers will start earlier than a year ago.

Online retailers also are compensating for the economy by making operational changes to help them protect their profits. According to the survey, 41.4% have scaled back on inventory levels and 22.9% have hired fewer people in their stores.

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