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Consumers Flock to FreeShipping.com - Take Note

Posted on 11.16.2008

The holiday season is heating up, and consumers are warming to the idea of savings wherever they can find it. And that includes shipping costs. FreeShipping.com saw a record surge in enrollments in October, rising 300% over 2007 totals.

"Now more then ever we're finding that our service is resonating with consumers. Online shoppers are looking for deals, and we provide the perfect solution," stated Vincent Villano, Managing Director of Clarus Marketing Group, the parent company of FreeShipping.com

The website offers rebates to consumers if they incur shipping costs - up to $500 per year. Some 1,000 retailers are included on the site, such as Wal-Mart, Target, Dell and Best Buy. There are also several buyer protections in place, including free extended warranties, price protection measures and return shipping.

What it Means to You

Shipping costs is one of those areas where an online retailer can really make an impact with consumers. Offering free shipping, discounted shipping for bulk orders or rebates is an excellent way to entice consumers to purchase when saving a few dollars is an important theme this season. And there's evidence to show that it's going to be an important strategy for etailers this year. According to the 2008 eHoliday Study, conducted by Shopzilla for Shop.org, a full 78% of online retailers plan to offer free shipping with conditions (higher purchase amounts for eligibility, for example) during the holiday season. And how do they plan on doing this? According to the study, 40% plan on renegotiating terms with shipping providers, 33% by closely managing company headcount, and 15% by reducing other promotions.

FreeShipping.com's unique visitors have climbed more than 187% over last year.

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