Small businesses selling over the Internet take note: Sixty-four per cent of online merchants singled out free shipping as the most effective sales promotion during the holiday season in a recent survey. And that's with or without customers having to spend a minimum amount.

The survey also found that 53 per cent of respondents will be offering free shipping on more products this year compared to last holiday season. Furthermore, 52 per cent who use free shipping with minimum spend reported that their average order size increases by at least $4.

The survey was conducted by Stamps.com, whose service enables businesses and consumers to print U.S. Postal Service-approved postage with a PC, printer and Internet connection. "In today's economic climate, customers are extremely value conscious," says Stamps.com president and CEO Ken McBride. "More and more e-commerce retailers are discovering that free shipping is good for their margins, so long as they have an efficient and affordable way to process and ship their orders."

The survey also highlighted the following:

• Merchants who offer free shipping with a minimum spend requiring an order value of $50 or more: 66 per cent
• Respondents will offer free shipping on orders of any size with no minimum purchase required: 29 per cent
• E-commerce merchants who expect to have international sales over the holidays: 82 per cent
• Merchants who plan to use social media to drive sales this holiday season: 54 per cent

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