Online shoppers are likely to shell out $1.35 billion on Free Shipping Day
December 17, 2015 04:42 PM
More than 1,000 retailers are offering last-minute online shoppers free shipping with guaranteed delivery by Christmas Eve in the annual Free Shipping Day promotion on Friday.
The shopping event is expected to attract up to 300,000 consumers, according to Free Shipping Day. And those consumers are projected to spend $1.35 billion, according to Adobe’s Digital Index.
This year’s participation marks a quadrupling of retailers from the 250 who joined the first Free Shipping Day event in 2008, and about the same number as 2014, says Luke Knowles, co-owner of Internet marketing firm Kinoli Inc. and the founder of the Free Shipping Day promotion.
Adobe’s projection of $1.35 billion in online sales would represent a 45.8% increase from $926 million in 2014, according to Adobe’s Digital Index.
Some of the retailers offering deals on FreeShippingDay.com, such as Target and Neiman Marcus, are offering free shipping throughout the holiday season. However, Knowles says 75% of participating retailers do not currently offer free shipping on all orders. Some retailers are offering extra deals with coupon codes that will appear on the website starting at 12:01 a.m. Eastern on Friday.
Knowles says his company receives a commission from participating retailers and sells advertisements on the Free Shipping Day website. He declines to disclose the income he generates, but says it is meaningful to his 15-employee firm.
Howard Schaffer, vice president of merchandising at Offers.com, says his coupon website lists the participating Free Shipping Day retailers because it promotes good savings opportunities for consumers.
Shoppers who wait to order their gifts after Friday risk spending more on shipping and not receiving their gifts on time, Schaffer says.
Adobe predicts there will be just one more day after today that will top $1 billion in online sales, Dec. 21, when Adobe predicts e-retail sales will hit $1.16 billion.
The two biggest spending days so far this holiday season have been Cyber Monday, Nov. 30, the largest U.S. online sales day in history when consumers made $3.07 billion in retail purchases online, and Black Friday, at $2.74 billion spent online, according to the Adobe Digital Index.