Consumers spent $6.59 billion online during Cyber Monday last month. That is a 16.8% increase from last year. With a lack of employees and square footage, distribution centers become overwhelmed during the holiday season. Free shipping and significant discounts have become expectations for modern consumers, and companies are having to face these challenges with creative solutions.
Minimum Order Amounts
Many small and medium-sized companies who are trying to keep up with the trend of free shipping have found refuge in minimum order amounts. Consumers receive free shipping once a threshold spending amount is surpassed. This is a win-win for businesses that can meet their profit margins and customers who have become so used to this luxury. One caveat businesses need to be aware of in this practice is not making the threshold too high or it will discourage customers from ordering.
In store pickup can give relief to distribution centers and cut down on shipping costs for big box retailers. Consumers still have the benefits of ordering from their computer or mobile device but they avoid paying shipping fees. Not all businesses can get away with this strategy because they are not as conveniently located as more widespread stores like Target and Walmart.
Frequent Price Cuts/Extended Sales
Most online retailers started sales much earlier and are extending them past Black Friday and Cyber Monday this year. This can help alleviate some of the pressure on distribution centers who get so many orders on the same day. Consumers can begin shopping earlier and continue shopping online beyond what are thought to be the best deal days.
Customers who use shipping clubs pay a yearly or monthly fee in exchange for unlimited free shipping. Amazon Prime is probably the most popular “shipping club,” and this is a strategy that has encouraged customers to spend more frequently. DynamicAction found that retailers have shipped 51 percent more orders for free this season than last.
*Cyber Monday Statistics - Adobe Digital Insights