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Online Retailers Turn on Services to Capture More of Holiday Sales
10/28/2009 — The Wall Street Journal
The Web is shaping up to be one of retail’s bright spots this holiday season, thanks in part to a new take on an old-fashioned retail idea: good service. Amazon.com is rolling out more “frustration-free” packages that replace hard-to-open plastic clamshells; eBay Inc. is highlighting merchants with the best ratings; and Sears is launching online layaway. In contrast, many traditional retailers have cut way back on inventory levels and holiday staffing, hoping to avoid the massive profit-eroding discounts of last holiday season. The push for better online service comes as big Web retailers forecast a relatively rosy holiday season following a 3% sales drop last year. Despite predictions of a flat to 1% dip in retail as a whole, 80% of e-commerce sites surveyed by the National Retail Federation in early October expect to see their holiday sales grow. Last week, online giants Amazon and eBay also projected holiday sales gains.View full article at The Wall Street Journal

