This is a vital question for online retailers — especially since free shipping has become such a competitive tactic. And the answer really should be that both are important.

As reported by Tim Parry for Multimerchant Merchant:

“An overwhelming majority of holiday shoppers will respond to retailers’ promotions offering free shipping, and they will ultimately shop with the retailer who can guarantee an on-time delivery date and/or the best shopping experience, according to MarketLive’s annual online retailer survey and recommendations for the 2013 holiday retail season. ‘Online shoppers have become quite savvy. They know how to comparison shop from their mobile phones and they have come to expect certain things like free shipping,’ said Ken Burke, founder and chairman of MarketLive. ‘But our survey also uncovered many tactical things that online retailers can do this holiday season — like tangible gift cards, 24/7 customer service reps, and online ratings and social sharing — to attract customers, retain margins, and compete successfully this holiday season.’”

Click the image to read more from Parry.