Dive Brief:

• Best Buy will offer free shipping on all purchases starting Oct. 25 through Jan. 2, the Minneapolis Star Tribune reports.

• The consumer electronics chain is waiving the $35 minimum purchase it usually requires to qualify for free shipping.
• With its free-shipping offer, Best Buy kicks off what has become as much of a holiday tradition as Black Friday: the “free shipping wars.”

Dive Insight:

Consumers are increasingly expecting retailers to offer low-priced and free shipping offers year round, let alone during the make-or-break holiday season, when stores can generate up to 25% of their annual revenues.  During the season, retailers have little choice but to offer shipping deals to be competitive with online behemoth Amazon. Last year, Target launched this competition by offering free shipping on all online orders, waiving its $50 purchase minimum.

According to a survey of 7,276 shoppers conducted this month for the National Retail Federation, 47% of consumers surveyed said that free shipping or shipping promotions are key factors in determining where they shop.

But while the perk — which retailers such as Nordstrom and Zappos offer all year — draws shoppers, it can be profit-sapping for retailers.

"For most companies, it is a very expensive proposition to try to offer fast and free," Steve Osburn, director of supply chain consulting firm Kurt Salmon, told Reuters. "It's really eating away at the margin dollars at some of these retailers."

Beyond the free-shipping ploy this holiday season, Best Buy also said it would debut a feature in its mobile app that enables shoppers to chat live with employees, Consumerist reported.