Online retailers that are already hoping for another big holiday season may want to consider the issue of "free shipping", according to a recent Jupiter Research report which found that 89% of the respondents to its annual Retail Consumer Survey Report indicated that free delivery and handling was the promotion most likely to encourage their online purchases. The research also reported that 51% of online buyers opted for retail store purchases just to escape shipping and handling charges and 49% reduced their purchases at certain online stores because of unexpectedly high or hidden shipping charges. So, online retailers should try to capitalize on consumers' willingness to delay immediate gratification by offering free shipping promotions or other reasonable incentives. Several online retailers utilize cross-channel information tools and other non-purchasing functionality at their sites and consumers appear to appreciate these.  More than half (56%) search for an offline location; 40% download a store coupon; 37% contact customer service; 35% sign up for e-newsletters; 29% read articles; 9% apply for a store credit card; and 7% register for a loyalty program online. The annual report also found that the most popular online shopping categories are books (39% made purchased within the past 12 months); CDs, tapes and albums (36%); and apparel (34%). 

Customers of SAP can sell their used inventory at auction under a deal whereby these companies will be able to use their existing SAP software systems to sell their idle assets on eBay. SAP said little additional investment is necessary to sell the goods because it has integrated its technology with eBay's infrastructure. Several other large organizations have sought similar partnerships with eBay to sell refurbished goods, including Hewlett-Packard, Eastman Kodak, IBM, Sears and Samsonite.  SAP's auction-management system automatically schedules eBay listings, aggregates product data, and generates and manages listings on the eBay marketplace. The two companies said the service will be available in the first quarter of 2004 in the North American market.  

At some point, most CIOs have pondered the question of whether or not to outsource an IT project.  According to Gartner, savings achieved through outsourcing can at times be 20 to 30%.  However, outsourcing is not just about money. Beside cost savings, many companies take advantage of outsourcing because it provides access to best practices.   The primary reason companies choose to outsource functions is because they do not have or cannot attract the people skills they need and outsourcing gives companies access to a much greater pool of skills. Outsourcing can be upsetting to your organization because employees know their jobs may be transferred to the vendor.   Even small businesses have begun to turn to outsourcers because many of them do not have an IT department, nor the skills to manage one properly, although they still have the same business needs as a large company, including payroll, human resources, accounting and customer service. Outsourcing can make all of these services available to small companies and can provide them with access to the latest technologies. All businesses need outsourced services that are customized to their business requirements.  Both small and large enterprises are becoming more interested in application service providers (ASPs) and hosting companies where they can rent applications or services from an outsourcer and pay only for the assets they need when they need them.  This "on-demand" approach is attractive to businesses because it allows them to access the benefits of technology without requiring them to have the skills and capital to invest in those assets.

Twenty-nine of the world's wealthiest nations are expected to announce the first multinational pact to fight cross-border fraud, which has grown sharply with the spread of the Internet. The agreement among the industrial nations belonging to the Organization for Economic Cooperation and Development was a year in the making and was spearheaded by the United States.  Members last week settled on guidelines for stronger enforcement and far greater cooperation in pursuing online scammers and others across borders.  The most significant guideline in the pact would allow closer cooperation and information sharing among investigators in the 29 countries and will encourage countries to establish consumer protection agencies that can prosecute fraud and seek cash penalties from scammers to reimburse victims.

Microsoft has filed suit against 15 spammers in the United States and United Kingdom as part of a stepped-up campaign to work with government agencies and other Internet companies to can spam. The lawsuits claim the 15 defendants sent some 2 billion unwanted and deceptive e-mail messages to members of Microsoft's MSN service and its Web-based Hotmail e-mail service.  The suits target e-mail senders who misled recipients about the true contents of their messages, in some cases prompting them to unwittingly open e-mail containing pornographic images or solicitations for dating services.

Due to vacation schedules, the next newsletter will be distributed on Friday, July 13.