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Online retailers wrestle with shipping discounts

September 24, 2008

Advertising Age: Retailers counting on online shopping to buoy sales in a tight economy are wrestling with a big problem: free shipping.

In the coming season, industry watchers expect more retailers to offer free shipping with strings attached in an effort to preserve margins. Retailers are likely to raise minimum-purchase requirements or set minimum-purchase requirements for the first time. Some likely will limit free shipping to only those shoppers who hold the retailer's credit card. And others will offer free shipping to customers if they pick up the items at a local store.

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