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Jupiter Research reported that it is estimating that 2002 online holiday retail sales will exceed its original projection of $13.1 billion, which would be better than 17 percent growth.

“Widespread free shipping promotions are the primary reason that the 2002 holiday season was such a good one,” Jupiter’s Ken Cassar said in a statement, noting that “online retailers may have created the expectation among consumers that free shipping and handling is now the norm, which puts a lot of pressure on retailers to run free shipping promotions into perpetuity.”
KC's View:
We’ve been saying for years that we believe free delivery is going to end up being a fact of life for a lot of businesses. The economics of it all are still to be determined.