Several dozen U.S. retailers are banding together to take on Amazon.com Inc. by striking at one of online shoppers’ biggest concerns: shipping costs.
Under a cooperative program called ShopRunner, launched on Tuesday, the retailers are mimicking Amazon by dangling a $79 loyalty program that offers unlimited two-day shipping. But in this case it’s across all of the participants’ online stores, whether it’s Babies ‘R’ Us, Pet Smart, Dick’s Sporting Goods, GNC or a host of others. One-upping Amazon, ShopRunner will offer free returns.
Retail stocks are upbeat on some encouraging signs that the coming holiday season won’t be a bust. MarketWatch’s Steve Gelsi reports.
Membership in such program acts as golden handcuffs: After prepaying for shipping, members become valuable repeat customers, in order to get the most out of the fee.
Amazon and its retail competitors are vying for the highest-spending online customers. Those shoppers are the whales of the $140 billion U.S. e-commerce market, one of the fastest-growing parts of U.S. retail.
Full Story: Retailers Team Up Against Amazon – WSJ