In response to what time of day to send emails, we've found in our experience doing PPC ad scheduling that the majority of traffic and sales happens between the hours of 8am - 6pm, when people are at work and presumably in front of a computer all day. I agree that you should check your analytics and plan emails around busy/slow times. There is a wealth of info in analytics & the Yahoo store manager that can help you determine good times and days for emailing!
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Jean Lloyd
Solid Cactus - Team Leader, Search Engine Marketing
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