E-COMMERCE / FREE SHIPPING OR ELSE

Online shoppers beginning to expect it, even as growth of e-commerce falters

From Wednesday's Globe and Mail

Online retailers are increasingly offering free shipping to attract recession-weary shoppers. According to U.S. research company ComScore, 42 per cent of e-commerce sales were shipped for free in the third quarter of 2009, compared with 31 per cent in the beginning of 2008. ComScore chairman Gian Fulgoni says shoppers are beginning to expect delivery to be included in the price.

"Retailers who do not offer free shipping deals this holiday season may find themselves at a significant disadvantage versus those who do."

In the same report, ComScore estimates third-quarter online retail sales will fall by 2 per cent, compared with the year-earlier period.

Retail e-commerce growth rates*

Q1 2008 11%

Q2 2008 13%

Q3 2008 6%

Q4 2008 -3%

Q1 2009 0%

Q2 2009 -1%

Q3 2009 -2%

* Excludes travel, autos, auctions and large corporate purchases

Staff, ComScore

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