AIAIO: Our Blog

AIAIO: Our Blog

The pulse of Alexander Interactive

Managing expectations

The big news in ecommerce this week is consumers’ growing expectation of free shipping from online retail sites. It’s no longer seen as a perk; people are instead planning their shopping around free-shipping promos.

This, of course, is leading to a big game of cat and mouse. Ecommerce sites are setting hurdles for purchases to get free shipping, hoping to make up the $7 or so in costs with increased sales. This in turn frustrates consumers, who look for ways to stock up on items, leading to lower purchase frequency, or who become frustrated and abandon their carts. (I watched my wife fall $0.04 short on free shipping last week and yell at the retailer’s website.)

I’m curious to see where this goes in 2010. Does free shipping become de rigueur among mainstream ecommerce sites instead of promotional? Will hurdle levels shift? Or will discount programs alter to accommodate shifting margins?

Business

One Comment

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