ByANNE KADET
DAN DE GRANDPRE
buys nearly everything online at huge discounts from bedsheets and luggage to, most recently, a case of chicken soup. He's developed a sixth sense about whether to act on a $20 coupon or wait for something better. He rides the ebb and flow of shipping deals the way a surfer rides the waves. Of course, he also has an advantage most online shoppers lack: a team of four programmers working full time to capture deals and promotions data from thousands of online retailers. De Grandpre is the CEO of bargains-intelligence site Dealnews.com, and he's at his desk ever day at 6 a.m., reviewing deals over an organic bean burrito and a 24-ounce coffee.
Is that what it takes to be a satisfied online shopper? The evidence suggests that Americans are growing frustrated with web shopping: We may love the deals, but we've lost patience with up-sell pitches, poor customer service, and shipping costs.
Customer dissatisfaction may be one reason why the growth of e-commerce has slowed: according to analysis firm Jupiter Research, online shopping accounts for just 5.2% of U.S. retail spending, up from 4.1% in 2005.
That's why, with the holiday season approaching, SmartMoney consulted the de Grandpres of the world insiders who work in e-commerce to learn how to iron the hassles out of web retail. A few of their choicest tips follow.
The Problem: Product Searching
Type the phrase "digital camera" into Google, and you get 62 million results enough to send you screaming back to the mall. Type it at a specialized product-search site like PriceGrabber.com, and the results aren't much better. "You could be there all fraggin' day!" admits Rob McMillan, the senior scientist at PriceGrabber.
The Solution: For products like computers, electronics and appliances, use predefined filters that let you narrow results using product specs like screen size or processing speed. For clothing or home furnishings, narrow your search using keywords. A search for "table lamp" at PriceGrabber turned up an impenetrable 64,000 results, but we quickly narrowed things down by adding the keywords "classic" and "iron."
The Problem: Missing The Best Offers
It's a familiar scenario: Your favorite online retailer emails you a 20%-off coupon that only you can redeem. Ah, you think. They really love me! Then you find out your friend got a coupon too for 30% off.
Blame the favoritism on the dark art of direct marketing. Marketers know that the best way to turn a browser into a first-time buyer, for example, is to offer a discount on merchandise most popular with new customers. They also know that folks who make a second purchase within 20 days are more likely to become loyal customers; first-time buyers at designer clothing retailer BlueFly.com, for example, receive a fast follow-up email offering another discount.
The Solution: Since some online stores show their lowest prices only to new customers, try deleting so-called cookies that retailers use to identify your computer, or check the site from another computer.
The Problem: Shipping Costs
Surveys suggests that many consumers are obsessed with free-shipping deals. "Fifteen percent off might be a better deal, but people prefer free shipping," says Dealnews.com CEO de Grandpre. The good news: It's getting easier to get bargains.
For more tips, and a behind-the-scenes look at big online retailers like BlueNile.com, Circuit City and Overstock.com, see the November issue of SmartMoney.
The Solutions:
As a rule of thumb, the biggest stores offer the best deals because they negotiate better contracts with FedEx and UPS. But since retailers also tend to match their closest competitors' offers, you can sometimes get a better deal at a different type of store. Since most department stores offer free shipping only on orders of $125 and up, for example, you're better off buying footwear at Zappos.com, which offers free overnight delivery.
This year expect many free-shipping offers to launch the day after Thanksgiving, says de Grandpre. After Dec. 15, many stores offer upgrades: If they normally charge $5 for ground shipping, they'll offer two-day shipping and, later, one-day shipping for the same price. Since Christmas falls on a Tuesday this year, expect to see these offers end on Friday, Dec. 21.
Many retailers distribute coupon codes for free shipping through third-party sites. To find them, Google the store name and the phrase "free shipping," or use a site like Dealnews.com.
Additional reporting by Neil Parmar>



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