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Reeling in customers with free holiday shipping

All merchants' eyes will be focused on the outcome of this season's promotions. Even though e-commerce has become a common way for shoppers to buy Christmas gifts, they continue to experiment with different free shipping options in search of the model that makes the most sense for their business. Perhaps that formula will be slipped into their stockings this year.

With holiday season promotions escalating into top gear, the term "free shipping" is popping up on many e-commerce sites. While the promotions do attract the attention of consumers, the meaning of the term and the impact of such promotions on retailers' sales are decidedly mixed at this stage.

Shipping has become a hot button in the e-commerce marketplace. In fact, many retailers view it as the most significant deterrent to sales because many customers abandon their purchases once the shipping charges pop up on their screens.

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