Electronic retailer, Best Buy Co., plans to offer costumers free online shipping for certain items until December. 21. Wal-Mart made a similar decision earlier in the month. Best Buy will offer free shipping for hundreds of thousands of items “including all CDs, Blu-Ray and DVD movies and gaming software and accessories”. However, products with heavy demand and values like iPads, laptop computers and major appliances will not be included in this deal. In fact, many retailers are starting to present consumers with free shipping as the holidays approach. Wal-Mart plans to have 60,000 online items with free shipping while Target this season will have the same deal for over 800,000 products on orders of at least $50.
In recent months, Best Buy has faced a steady stream of competition from Wal-Mart and other discounters. However, the company has still managed to posts growth for the year. In September, “the company reported a fiscal third-quarter profit that topped analysts' estimates and raised its forecast for the year”. As the approach, Best Buy will look to continue this growth.
http://online.wsj.com/article/SB10001424052748704648604575620482439021728.html?mod=WSJ_Retailing_leftHeadlines
Free shipping is something that is definitely going to help these retailers over the holidays. It is probably going to act as an incentive for people to buy more than they would have without it, since they can have it shipped for free. Shipping costs can often be a hinderance or an annoyance to a consumer. They usually see shipping costs as a deterrent from buying because it is an added cost. During the holidays, though, they can ignore that added cost. They will feel that they are taking advantage of the free shipping and not realize the extra spending. On the surface, it seems as though retailers are doing their consumers a favor, but really, they are just encouraging more buying. However, that extra buying is masked by the thrill of getting something for free.
ReplyDeleteCatherine Reeves