Attention E-Shoppers: Thursday Is Free Shipping Day

One of the most dependable draws for online shoppers is free shipping -- but that can be trumped by fear that gifts won't arrive in time as the holidays draw near. Free Shipping Day is designed to quell that worry and encourage consumers to place online orders with confidence that they can get both a deal and just-in-time delivery.

Move over Black Friday and Cyber Monday, and make room for yet another retail-inspired shopping event. Free Shipping Day is here -- or rather, it will be here on Thursday, Dec. 18 -- the last day someone can order a gift online and have it guaranteed to arrive on Christmas Eve with free shipping.

Free Shipping Day is the brainchild of Luke Knowles, who hatched the idea just a few weeks ago. There are now 250 retailers participating in the campaign.

Knowles seized upon the idea when he realized that online holiday shopping peaks weeks before offline shopping because people are afraid their gifts will not arrive in time.

Last year, for example, the online shopping season peaked on December 10, with US$881 million in sales, he pointed out. However, shoppers at brick-and-mortar stores continued to spend heavily during the weeks before and after Christmas.
Big Money

Free shipping has proven to be a reliable inducement for online shopping. Shortly after Thanksgiving, Knowles floated the idea of highlighting it with a special "last day" promotion and was amazed at the reception it received.

"Judging by the interest and excitement, I think this could be as big as Cyber Monday in a few years," he told the E-Commerce Times.

If the reaction of Lisa Christopher, a public relations account manager in Winchester, Calif., is any indication, he may be right.

"I only shop where and when I can get free shipping," Christopher told the E-Commerce Times. "Disney online for example, will offer free shipping if you spend a certain amount of money. I always make sure I hit that minimum; I'd rather get something for my money than not. This holiday season, I haven't paid for shipping, and 95 percent of my gifts have been purchased online."

Within a few years, Free Shipping Day will become so popular that it will increase online holiday sales by hundreds of millions of dollars, Knowles predicted.
Something for Free

There is little doubt that free shipping does help to increase sales, Tony Hsieh, CEO of Zappos, told the E-Commerce Times. Offering free shipping for both purchases and exchanges, he added, "really helps to drive sales and customer loyalty."

Free shipping is even more important this year because of the economy, Carolyn Groobey, vice president of consumer marketing at Bill Me Later, told the E-Commerce Times. "Our recent research with Ipsos Insight determined that holiday deals are proving more popular than ever. One third of survey respondents say that they will only buy items for which they can find holiday deals."

Indeed, even for products that would cost very little to ship, such as jewelry, the inducement is important. "In this economy, people are trying to save a penny any way they can -- and free shipping day gives them that opportunity," Yomesh Shah, President of B2CJewels.com, told the E-Commerce Times.

Who's Participating?

Bloomingdale's, JC Penney, Kohl's, Macy's, Nordstrom, Sears, Circuit City, Crate & Barrel, Eddie Bauer, Kmart, Sears, Sur La Table, Target and Zappos are among the retailers participating in Free Shipping Day.

This year, the event was put together hastily. Next year, however, Knowles will begin planning far in advance and will consult more with participating retailers to determine what is the latest possible shipping day.

Free Shipping Day 2009 will be selected in January, he said. It will likely fall around the same time as this year, give or take a day.

Text to Purchase - Buy It?

In light of the hysteria surrounding CyberMonday I thought I'd share a new purchasing tactic that is being used by Amazon this holiday season - using text messaging to buy products from your mobile phone.

TextBuyIt was first implemented by Amazon in April 2008. As consumers are dealing with an economic crisis, this method allows them to do their comparative shopping while in store. Unlike surfing the web at home where you only find deals at online stores, you can actually text the product as you see it on sale in the store. You can search on any keyword (e.g. item name, author, artist, etc.) or ISBN/UPC code. This applies to any item that you'd typically search for on Amazon. Google's new phone, G1 allows you to scan a UPC which you can send to Amazon and they'll find the product for you.


Save a bit this holiday season with free shipping and no sales tax while doing your in-store shopping. Sure Amazon may not have the best deal on every item but then you'd be wasting your time. Cool stuff.

Multi-Channel Holiday Shoppers Prefer Online vs. In-Store

The holiday shopping season of 2008 has brought us a new first: For the first time, the web has surpassed the store as the preferred way for multi-channel shoppers to purchase holiday gifts, according to the e-tailing group’s third annual “Mindset of the Multi-Channel Shopper Holiday Survey.”


Nearly half (49%) of those shoppers say they intend to do their holiday gift buying online, compared with 44% who plan to do so in-store, found the online survey of over 1,000 adults who shop online four or more times per year, spending at least $500 annually.

Reasons for shopping online start with saving time (88%), locating hard-to-find products (84%), greater selection (83%) and avoiding the crowds at the mall (83%) - all surpassing saving money, which is still an important factor (80%).

Because of the tough economic climate, 52% of consumers plan to buy fewer holiday gifts this year. The average number of gifts is projected to be down from 16+ last year to 11-15 this year.

Although consumers plan to buy fewer gifts and spend less for those gifts, 72% (vs. 65% in 2007) are planning to research products online prior to purchasing.

Over 91% plan to purchase the same number or somewhat more gifts online; that’s equal to last year’s levels.

“Value spending is definitely the mantra as these multitasking consumers watch and monitor the web to get the best deals,” said Lauren Freedman, president of the e-tailing group. “Holiday gift buying is particularly impacted by this propensity for shopping smart as consumers preview online to get the most for their money.”

Convenience and efficiency have clearly made shoppers more comfortable with the online channel, as evidenced by more products’ being sold across a broader range of categories as well as increased usage of tools and information, according to the e-tailing group.

The No. 1 customer reason for not buying more online is the high cost of shipping; that’s according to 78% of those surveyed:

Free shipping (95%) and sales/specials (83%) are at or near the top of the list of what influences the buying of gifts online; another is keyword search (86%).

For 42% (vs. 30% last year), gift cards will account for 11-50% of their online holiday spending. Wish-list use has also accelerated, with 35% (vs. 25% last year) reporting that they have shopped online from someone else’s wish list three or more times.

“Although the internet is now the shoppers’ channel of choice, economic pressures are making the stakes high for merchants. They need to continually learn from and react to their customer’s multi-channel demands,” cautioned Kelly O’Neill, e-commerce marketing director for ATG. “It is imperative that practical solutions be deployed wisely throughout the holiday season and into 2009.”

Alternative Online Payment Options: Here to Stay?

In light of eBay's billion-dollar acquisition of BillMeLater, which cut 1,000 jobs - are alternative online payment options here to stay? These solutions might attract consumers who are hesitant about placing a large purchase on a debit or credit card. PayPal has offered credit solutions for its customers but now eBay is banking on its own merchant services.

But what if you could offer your customers your products for free for things that they apparently want to do anyway? It turns out that you could get paid as if customers purchased from you directly. This is where alternative payment companies like TrialPay, Webloyalty and Affinion help. TrialPay is a different kind of alternative payment, a conversion tool for the large numbers of customers who ordinarily would not pay. Just as BillMeLater can help convert a customer who might not have enough cash to make a purchase, TrialPay helps convert customers who wouldn't normally purchase -- period -- by allowing those customers to "pay" when they transact with a trusted partner for which they have a high willingness to pay. Those companies pay TrialPay for the customer acquisition, which covers the cost of the product or discount you give away to the customer.

My two cents: As people continue to struggle through our country's economic crisis, these options offer assistance to those whose budgets are tighter than ever. However, there is definitely much concern when the decision results in significant job loss for workers.

Social Shopping

We all know that testimonials and reviews on products influence shoppers' decisions and purchasing behavior online. What if we throw in a viral community of shoppers that share their experiences and make suggestions like social networks? Introducing Social Shopping, a unique experience that combines social networking and e-commerce.

Shopping is becoming more experiential and a few sites are reminding us how their users best communicate with each other - by sharing. Online social shopping sites aim to give shoppers a similarly interactive, personal and communal experience. "It's like going shopping with a friend versus going alone," Chris Kensler, editorial director for social shopping site Stylehive. "You get to bounce ideas off of each other and get new ideas. It's the kind of discovery that comes from shopping in a group that makes the site work."

Here's a run-down of the top social shopping networks:

Kaboodle is a social shopping community where people discover, recommend and share products. Kaboodle's tools allow people to organize their shopping through lists, discover new styles, get discounts on popular products and find best prices. Community members create and join groups, share advice, feedback and product suggestions and personalize their profiles with polls and other widgets. Kaboodle was launched in 2006 and has 550,000 registered users and over 7 million monthly visitors.

Part social-networking club, part pop-culture lab , Stylehive.com is one big ensemble cast of trendsetters creating, discovering and buying the next big thing! A hip hybrid that connects online style addicts with one another, as well as to their favorite fashion, home goods, and other fun stuff, Stylehive.com has become the go-to address for all things fresh, hip, and now.

Founded in 2006, ThisNext is a social shopping network where people interact with community-validated taste makers and influencers to discover recommended products.
Reaching millions of visitors each month, ThisNext has become the place to find and experience the best, most unique products on the Web. ThisNext is funded by Anthem Venture Partners and Clearstone Ventures Partners and is redefining online commerce as a genuine social shopping experience.

Check em out. They may be talking about your products already!

USB Wristbands...The Evolution of Live Music Recordings

With the amount of digital downloads over the past year, it's no surprise that CD's are quickly becoming a thing of the past. Apple has made it so easy to obtain music through its iTunes store. Napster and Rhapsody are back in the fray. There are rumors that Best Buy, Target, and even Wal-Mart will eventually stop selling CDs and revert to downloads online.

While all of this is exciting for the digital community, what about all of the live shows we go to and supporting those artists? What happens when they stop selling CDs at their merch booth? I found out what happens at a Slightly Stoopid concert last night at Red Rocks: Silicon wristbands with USB drives built-in to them.

These are not your ordinary wristbands. You can take live recordings of the show home with you on your wrist and then listen to the live show on your computer, burn it to a CD, or upload it to your iPod or any MP3 player! These USB wristbands are Mac and PC compatible. A limited number of these USB Wristbands were available for purchase at the merchandise booths approximately 15-20 minutes following each artist's performance.

The idea was first implemented last night and to prove it successful, there was so much demand that opening acts' performances sold out the wristbands. This buzz quickly became widespread within their community, and the band will now make them available online for those who missed out on the show.

eTail 2008: Embracing Web Analytics and Social Networking

Speakers at the eTail conference in Washington stressed both web analytics and social networking as the most effective means to understand both data and human behavior.

While many companies look at what the consumer is buying, they are missing out on predictive modeling, seasonal cycles, buying/browsing patterns, and gauging the value of "action words" that give more insight into the behavior of consumers. Sheldon Gilbert, founder and CEO of Proclivity Systems, whose company focuses on analytics and predictive behavior modeling, added that “customers are telling us things constantly, but we don't see it. Many of you are sitting on a goldmine."

Gilbert added that “the data will tell you what to offer,” and that “human behavior is fairly predictive.” The best way to create offers is to learn what customers of one particular product are also buying. He also pointed out that this type of modeling behavior will only get more advanced as we tap into social media groups, blogs, videos and customer reviews for data.

In addition, the “wisdom of the crowds” mentality and how it comes into play regarding purchasing patterns was discussed. “People who are friends, consciously and subconsciously, buy similar products,” he said.

Also speaking at the conference, Pattiann McAdams-Russell, president of Avon's online division, said that the cosmetics direct merchant is digging deeper into social networking as a way to give its sellers more power. By year's end, Avon representatives will have the ability to blog on their personal Avon Websites. This will enable them to further tell the story of the products they sell. Reps will also be able to chat live to help customers make their decisions.

Avon is also testing with Facebook and MySpace to attract a younger business. The company is integrating with Facebook to allow reps to have a storefront within that social network. McAdams-Russell said this type of social integration "will allow for engaging testimonials, and allow users to share knowledge of their products with their friends."

My POV - the ecommerce landscape is constantly evolving. As we gain insights into how people shop, we start speaking their own language. This only helps make the transaction run smoother, kinda like your good ol' fashioned "relationship". All you need is honesty, loyalty, and trust.

As Gas Prices Increase, Are More Retailers Willing To Drive Online Shopping?

In light of increasing gas prices, some online retailers are offering incentives such as free shipping to increase sales volume...and it's working. Top retailers are seeing a double-digit increase in online sales while struggling with sluggish sales from their brick-and-mortar stores.

Read this interesting article from the NY Times.

Amazon's checkout can be yours

Move over PayPal and Google Checkout...

Amazon just opened the door for online retailers to process transactions using their checkout. Online merchants simply add Amazon's checkout cart on their site and Amazon will handle the payment process from there. They also launched Amazon Simple Pay, so if you already have an account with Amazon, your info is stored so you can avoid re-entering and calculating shipping costs and sales tax.

Of course there are transaction fees, starting at 2.9% of the entire order. Beats doing it yourself.

Read more about Amazon Checkout and Simple Pay here.

Pandora's web app brings streaming radio anywhere

I discussed the use of iPhone's web apps for online shopping. This post demonstrates how Pandora will change the way people listen to and interact with radio through the use of their web app.

I was at a sushi restaurant recently, sitting at the bar and struck up a conversation with the bartender while listening to their music. It kinda went like this...

Me: "This is a good mix, where did you get it?"

Bartender: "Pandora on my iPhone 3G. I created my own station and it's playing through the speakers in the restaurant."

This means you can listen to Pandora anywhere - your home theater, car, even a jog around the block - on your iPhone. Check it out for yourself.

Read more about Pandora's web app here and be sure to check out the video.

Are online auctions fading?

Let's face it - the online marketplace has changed drastically over the past decade. Ebay's revenue is down, considerably, and they are in a desperate state of overhaul.

Read this to learn more about the future of eBay.

Can new logo for Wal-Mart repair its image?

Wal-Mart, err...uh, Walmart (no dash) has a new look. But is it as environmentally-conscious as it's new logo suggests?

Read more here!

Who Knew...Hulu

NetFlix revolutionized shopping for DVDs online without having to leave your house. YouTube allowed users to upload their own videos and watch their favorite clips for free. Now a site called Hulu merges both worlds.

Unlike YouTube, Hulu's flash content is at a higher resolution and bit rate which yields a better picture on a larger flash player. Although you're still streaming here, you have the option to pop out, view full screen, share, or watch theater-style. TV clips, episodes and videos are supported by the major networks, so you don't have to worry about the link being taken down or clicking through hundreds of user-uploaded videos to find the original. Hulu also categorizes full-length episodes from short clips.

With NetFlix, you order and wait. Before you order, you hope that there is a short line in your queue. With Hulu, all you have to do is search their library and start watching excerpts or feature films. Films are categorized by type so you can browse the lineup, which changes every so often.

So how can they get away with this? Hulu is owned by NBC Universal and News Corp, so the majority TV episodes you find are from NBC and FOX. You will also see advertising at the beginning of play with limited interruption - sometimes outside of the actual player - during commercial breaks.

What about paying for content? If you want to own an episode, all you have to do is click on a link that will take you to Amazon.com to purchase. In light of Apple allowing iTunes users to rent movies and download programming, you can watch it in just about any format (they give you a list of options). Plus you can take it with you to watch on another computer. The highest resolution is 480p, which is standard but by no means HD content.

Now...time to catch up on old episodes of LOST.

Shop from your iPhone using web apps

The new iPhone 3G has some pretty impressive features, but the most compelling may be the use of web applications. Web apps allow for developers to create their own content. Apple will even help guide you through the Developer Connection with tutorials, videos, sample codes, and reference libraries. You can sign up for a free Apple Developer Connection, which will give you access for submitting your own web app.

The first to take advantage of Apple's web apps for e-tail is AOL Shopping. Their web app has the same functionality as their website - allows the user to search information about the products, read product details, get links to where the items are selling online, and get phone numbers, addresses, and directions to stores - all on your iPhone.

AOL Shopping uses their massive search engine to find the best prices on products offered from multiple retail outlets, such as Amazon, Barnes & Noble, and Target. Enter your zip code to calculate shipping and tax. You can see available stock and purchase with the touch of a button. So imagine this: You go to a store to find that they are sold out of your product. Instead of calling stores and waiting for someone to check stock, you can bust out your handy iPhone and see for yourself. Not to mention, you can compare prices from a slew of retailers. Genius!

Paper or plastic? I'll take a box.

For those of you who understand the frustration of going to the grocery store to find that your favorite brand has been replaced with a cheaper, less-appealing knock-off, you will be happy that you can probably find it at the same place you pay your bills. A couple years in the making, Amazon Grocery now offers more than 22,000 non-perishable items and provides its superior shipping services while keeping you updated with special offers and new items.

Now I know what you're thinking, "What is so convenient about that when I need it now?" Here's the catch...what if the local store doesn't have what you need? Then where do you go? Another store. So then you repeat that process until you give up - due to multiple trips - and eventually buy something similar, to be ultimately disappointed. The benefit online is that special varieties of products or regional favorites can be easily found with a few clicks rather than unnecessarily running around town.

In addition, value is a concern. "What is economical about shipping a jar of my favorite salsa?" Amazon Grocery might have your salsa in a multiple pack - or even a case - which helps them keep their per-unit costs competitive.

There are also questions with shipping. Not every item will make sense for an online purchase. For heavy or bulky items, you'll be safer sticking to your store since those may cost more than their weight/size to ship. Also, you won't want items not worth waiting for. Some items don't ship immediately - most within a few days. Although, your items could qualify for free shipping. At least you won't have to worry about sales tax.

The most intriguing feature of Amazon Grocery is their interactive shopping list, making it easier to locate and track routine buys. As with all Amazon products, there are reviews, ratings, and suggestions which you can take advantage of while adding items to your cart.

All in all, shopping for grocery items online is nice, but may only be convenient for particular items. It doesn't seem to eliminate the need for a trip to the store, unless you are searching for one item in particular.

Another alternative to shopping at the store would be paying extra for a local home delivery service. Kroger stores offer this service, HomeShop® to Colorado customers through King Soopers/City Market, and Alaska customers through the Fred Meyer chain. This type of service is especially handy for elderly and disabled individuals who can't physically shop at the store. I'd probably take advantage during the next blizzard.

Will other grocers follow suit? Time will tell.