Free shipping may be big

If hearing seven versions of “Silent Night” in six stores is enough to drive you to drink, you’re probably among the millions of people who have ditched the mall for your mouse. Shopping online is expected to be more popular than ever this year, and with consumers minding their pennies, free shipping is expected to be a big deal this holiday season.

“The economy will drive more people online to look for the best prices,” said Kurt Peters, editor-in-chief of Internet Retailer.

Forrester Research analyst Sucharita Mulpuru predicts that consumers will spend $44 billion online in November and December, a 12% increase compared with last year. But 45% of online consumers say they plan to buy less this holiday season. Still, 27% expect to spend more online this year than last year. The bulk of online spending by consumers comes from purchases of apparel, books, DVDs and music.

This year, nearly 80% of consumers said they were more likely to shop online with a retailer that offers free shipping, compared with 60% who said that last year. Online retailers are rushing to accommodate them. Comparison shopping site PriceGrabber recently announced that it was launching a free shipping site for shoppers. On the same day, PayPal announced free shipping deals with some of its partners, and cash-back deals with retailers such as Blockbuster and eToys. EBay will also be offering free shipping on some items.