March 14, 2008

Shipping Issues Continue To Plague Online Retailers

2007 Holiday Data Reveals Consumers' Discontent With Delivery Costs

by Sucharita Mulpuru, Peter Hult

with Carrie Johnson

Executive Summary (This is a document excerpt)

More US Web buyers experienced problems or complications while shopping online in the 2007 holiday season than in 2006. Nearly one in two online shoppers had difficulties. Chief among the site disturbances was dissatisfaction with higher-than-anticipated shipping prices. To allay customer frustration with elevated shipping fees without resorting to a possibly margin-eroding free shipping strategy, eBusiness executives need to audit shipping costs, employ A/B testing of shipping offers, monitor call center data for complaints about shipping fees, and tactfully dispense follow-up email promotions to shopping cart abandoners.

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