eCommerce Sales are Up?
Nov 18, 2009
I don’t think I’ve ever seen discounting and special offers like I’ve seen so far this season and Black Friday and Cyber Monday aren’t even here yet!
Walmart yesterday issued a statement giving shoppers a sneak peek at some of the bargains to expect on items like plasma TVs, DVD players and deep discounts (some up to 60%) off popular kids toys. The mega-retailer also entered into a DVD price war recently with Amazon.com and Target, but weren’t able to match the deals.
While nearly every eCommerce store is in discount mode another theme very popular this year is free shipping. Whether it be ground service at no charge with a minimum order or just plain free shipping, the offer is luring in shoppers. But will these promotions and discounts help merchants turn a profit this year?
Internet Retailer commissioned a survey that found that October 2008 compared to October 2009 showed a 12.6% increase in sales, but don’t jump off your chair in excitement yet, according to the article:
…even though total sales were up by 12.6% year over year, the industry’s health was little changed from a year ago because total sales owed so much to discounted items, sales of which were up 112%, and because the depth of discounts increased from an average of 24.6% in October 2008 to 28% this October. Online retailers saw sales drop 2.6% on non-discounted goods from the same period last year.
This clearly shows that shoppers are extremely price conscious and are out there looking for the merchant who can give them the best possible price and service. So what is a merchant to do in this so called “new economy?” Not all of us can afford to offer deep discounts or free shipping, but we can provide value in other ways.
Customer Service – while service may not be what your customer is shopping for, give it to them and they may choose to fork over their credit card to you rather than mega-mart who you can’t even call to have a question answered. Make sure you make yourself accessible to your customers in case they have questions about a product you’re selling and make sure the person on the other end of that call or email knows what they’re talking about. Everyone who works for you should be an expert of the products you’re selling, if they’re not…. well, stop reading and start training.
Hook ‘Em – you’ve got that potential sale on the phone or in your in-box, don’t let them get away. Ask them what you can do to get their order today. If that means throwing in a small dollar amount gift card, giving a little off, working a deal on shipping or throwing in a free item, consider doing it. You paid a lot to get that lead and have that lead call you, now don’t lose them. Ask for the order, but don’t be pushy.
Shipping Deals – if free shipping is the magic elixr shoppers are looking for this season, it may be high time you look at your margins and see if you can offer some variation. But like I said above, not all of us can afford to do it. If a free shipping promo is definitely out of the question, what about offering a flat rate shipping promotion such as $4.95 ground or free shipping on select items.
Gift Cards – perhaps the best kept secret in the industry. In 2007 Consumer Reports reported that 27% of gift cards go unredeemed. That’s a lot of cash floating around out there. So why not have a promotion where if you spend $X you get a gift card or gift certificate for your store for $X. If those numbers still stand true, only 73% of people will redeem that card or certificate.
Some of you may be saying “I don’t need to discount or make deals for my customers to buy from me.” If that’s the case, congratulations, but I don’t believe you. Unless you’re the only person selling electric blankets to the Eskimos, nobody needs to buy from you. You have competition and competition this season is FIERCE. Let me say that again, competition this season is FIERCE. Having a solid holiday promotional plan now will help you “ring” in the new year on a happy note!


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