RETAILERS LURE ONLINE CONSUMERS WITH PERKS AND DISCOUNTS

There may be no free rides in life, but when it comes to online purchases there are some things to celebrate. One of those is free shipping and special discounts. The goal is to get shoppers to spend more time and money shopping online.

Two weeks ago Gap launched Piperlime. The site offers fashion advice from celebrity stylist Rachel Zoe and year-round free shipping and returns. There are more than 100 brands of shoes as well (this consumer wants choices).

''That is a classic example of taking advantage of your existing customer base and trying to up-sell them,'' said Sucharita Mulpuru, an analyst at the technology consulting firm Forrester Research.

The reason for this retail courting is due to the fact that the number of new online shoppers is leveling off. Therefore retailers are looking for new ways to ensure their existing customers stay loyal to their brand and their site.

Online sales have slowed in recent years, though it is still outperforming traditional retail stores. In 2002 online retail sales were up 43.8 percent, to $53.5 billion, according to the trade group Shop.org. This year, online sales are predicted to increase 21.5 percent.

A report by Forrester Research showed that ten percent of online shoppers spent $500 or more in the past three months. These loyal Web shoppers have an average household income of $91,296, and more than half have a college degree, Forrester said.

Getting them to spend more on the Web is important, but Erika Serow, a partner at management consulting firm Bain & Co., said online retailers also need to focus on convenience, easy navigation, checkout and providing detailed information about merchandise. By contrast, new shoppers are most concerned that their transactions are secure.

''You don't need to fancy up the Web experience,'' Serow said. “You just need to make sure it’s as consistent and pleasant as an in-store experience.''

Wal-Mart has the same goal. Their revamped website now features simplified designs and pop-up boxes with product details. A link to items with price reductions is in a column on the left side of the page to make way for rotating

Shop.org estimates that online sales will make up only 5.5 percent of total retail sales this year. But according to Forrester, the market share for online retailers could rise as much as 15 percent.