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Free Shipping Day Comes But Once A Year?

Written by RetailWire Staff

According to organizers Kinoli Inc, Americans made Free Shipping Day last year the third-heaviest day ever (at that time) for online shopping. "The total of $942 million spent in that single day was an increase of nearly 60 percent over 2009, and bested Black Friday in online sales by $300 million."

There seems to be clear evidence from the National Retail Federation (NRF) and ComScore that shoppers do not like, and will not accept, delivery charges. Some refuse to shop with certain retailers and even cancel orders if they get to checkout and find that they are about to pay for delivery. Conversely, they might spend more to reach the minimum purchase required for free delivery. With the fourth annual Free Shipping Day scheduled for December 16 in the U.S. and December 9 in the U.K., some retailers who normally charge may find a sudden surge in sales when they stop.

Heather Dinolfo of Atomic PR points to digital agency iProspect's clients who "are hoping for a piece of the pie which last year saw an increase in sales of 61 percent YOY for the event," adding "27 percent have purchased items they didn't plan to buy to qualify for free shipping." NRF's research found that 36.3 percent of shoppers will spend more online this year if shipping comes free.

Change has come rapidly. Brad Tuttle in Time refers to a New York Times story in November 2010 noting that 41 percent of online orders were shipped free and says it was "an impressive figure at the time." Since then, it has become more of the norm. Extra enticements may be available in reduced (or eliminated) minimum purchase requirements. And a potential increase in small businesses, including some 190 Esty artisans and 150 eBay re-sellers, offer a more individual range of presents than big retailers. Catherine Clifford in entrepreneur.com reviewed the experiences of three small businesses, comparing the attraction of new customers with reduced profits from absorbing shipping costs. Perhaps paid delivery really is genuinely a thing of the past.

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