• by Jack Loechner , Staff Writer @mp_research, February 12, 2009

According to the e-tailing group's 11th Annual Mystery Shopping Survey, leading merchants are optimizing merchandising to get sales. Merchants limited-time-only promotions jumped to 42% penetration in 2008 from 18% in 2007. Gift with Purchase showed a measurable decrease perhaps as it is less economical than the other tactics benchmarked. Online Outlets Clearance saw a 14 percent increase in penetration year-over-year, with 86 percent of merchants now deploying this tactic.

Free shipping continues to be a promotional standard offered by more merchants in diverse manners that complement their business models including an increase in conditional free shipping to a store (26% in 2008 vs. 15% in 2007).

Promotional Merchandising Strategies Offered (% of e-tailing top 100 merchants)
Strategy	4th Quarter 2008	4th Quarter 2007
Online outlet/Clearance area	86%	72%
Gift with purchase	44	62
Sweepstakes/contests	42	32
Limited hour sales	42	18
Rebates	27	27
Buy more & save	20	na
Internet only sales/specials	19	23
Dollars or percent off next purchase	11	4
Couponing	14	13
Buy one, get one free	6	8
Other (purchase with purchase)	35	26
Free shipping (all products)	8	8
Conditional free shipping (all products)	43	34
Conditional free shipping (certain products)	34	29
Conditional free shipping (to store)	26	15
Source: the e-tailing group, February 2009

Lauren Freedman, President of the e-tailing group, said "... we observed merchants pulling out all the stops to rethink promotions, refine search, retool content/information, and reinvent community."

Refining search with the goal of getting shoppers to the right product is a priority, as 100% of the sites surveyed have the feature. Beyond this:

• 85% of merchants are implementing an in-depth refined search  
• 63% are implementing guided navigation
• 77% providing landing page sorts

Retooling content augments category, product, and multi-channel efforts via rich and robust enhancements, says the report. ?Detailed product information coupled with rich media gives consumers the confidence to buy. Video adds a dimension, in addition to creative treatment with imagery coupled with category-specific capabilities.

Retooling Presentation (% of e-tailing top 100 merchants)
Rich Media	4th Quarter 2008	4th Quarter 2007
Zoom	90%	86%
Alternate views	68	66
Streaming video	62	45
Color change	60	57
Audio	61	47
View in a room	27	5
Source: the e-tailing group, February 2009

Customer education is paramount and here too category-centric content elevates the shopping experience while interactive tools ensure customers make the right choice. Brands are more apt to play a role in this arena by availing merchants of rich media and in-depth information. Additionally, manufacturer attempts to inspire shoppers are evolving online via direct-to-consumer initiatives.

Share is a new metric in the e-tailing group 11th Annual Merchant Survey, and merchants test a variety of strategies and methodologies throughout their sites. Look for increased usage as merchants understand the viral power of cost-effective community initiatives. Ratings and reviews are also elevated as user-generated content plays a greater role for consumers with 58% of the EG100 incorporating this tactic into their shopping experience and 24% selling by top-rated products.

Reinventing Community From Blogs to Boards (% of e-tailing top 100 merchants)
Community Features	4th Quarter 2008	4th Quarter 2007
Refer/E-Mail friend	81%	74%
Ratings/Reviews	58	50
Blog	26	10
Community boards	26	16
Share	28	n/a
Source: the e-tailing group, February 2009

Freedman summarizes, saying "...  time-savings tools to custom control multi-tactical initiatives go a long way toward brand building... ultimately customer involvement and interactivity should reinforce differentiation and result in sales."

For additional information about the e-tailing group and the more complete report, please visit here.