Dive Brief:
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Target has begun offering free shipping on online orders of any size through Dec. 20, an assertive move to launch the holiday season.
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Reacting to evidence that many e-commerce shoppers abandon their shopping carts once they see shipping charges, Target earlier this year already simplified its shipping policy and lowered its free shipping minimum to most orders over $50.
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In addition to free holiday shipping, which started Wednesday, the retailer announced a new wish list app, special holiday time-only available products, and a deal with designer David Stark to decorate stores.
Dive Insight:
Target has been working hard to boost its e-commerce sales, which grew 30% last quarter, and free shipping over the holidays is a good way to get people on their website and revamped mobile site. This move is akin to Macy’s early announcement last week that it would be opening earlier than ever Thanksgiving Day to kick off Black Friday. And Target may also want to make up for last year’s holiday-time data breach nightmare.
In any case, Target will be using its stores as mini-warehouses, as Best Buy starting doing last year, to help it deliver packages as quickly and cheaply as possible. Along with in-store and curbside pick-up and same-day delivery in some areas, Target has joined the delivery wars and is using its brick-and-mortar presence to good advantage.
