Dell and OfficeMax eliminate most paper rebates

Two more big-name online retailers are abandoning paper rebates in favor of the Internet. In a move to streamline its customer service program, Dell Inc., No. 4 in the Internet Retailer Top 500 Guide to Retail Web Sites, is reducing the number of mail-in rebate offers for Dimension desktop computers and later will reduce the number for other electronics, accessories, software and services, the company says.

Beginning in August, Dell also will migrate to an online rebate program, though the company has yet to provide details. “This will make it easier for customers to electronically file for rebates and get their money back,” says Ro Parra, Dell senior vice president, home and small business group.

Dell is eliminating paper rebates in a move to jumpstart sales and improve customer service. Over time Dell projects a 70% reduction in the number of promotions per product line and an 80% reduction in the number of promotions tied to a single product. “Through direct relationships and more than a million interactions with customers every day, it became increasingly clear that a simple pricing and sales structure would make it easier for customers," says Parra. "They told us what they wanted and we’re delivering what they asked for."

More consumer brand manufacturers and chain retailers are eliminating paper rebates in order to eradicate a longstanding customer sore point and increase sales. OfficeMax Inc., No. 6 in the Internet Retailer Top 500 Guide to Retail Web Sites, recently eliminated almost all paper rebates in favor of giving customers an instant discount at the time of purchase. The instant discounts apply to purchases made online and in stores. OfficeMax is extensively promoting its new paper rebate elimination policy on OfficeMax.com.

"Eliminating the OfficeMax mail-in rebate program and implementing a process that instantly reduces the product`s price at checkout brings more integrity to the shopping experience,” says OfficeMax chief merchandising officer Ryan Vero. “We`re intent on providing OfficeMax customers with the best shopping experience possible and the retail mail-in rebate program was not consistent with that goal."