Web Retailers Cheered as Shoppers Flock Online (UP AS HIGH AS 41% OVER LAST YEAR)

REUTERS ^ | 12/26/2002 | Reshma Kapadia

[TLBSHOW]

Web Retailers Cheered as Shoppers Flock Online

NEW YORK (Reuters) - Shoppers flocked to the Web this holiday season, boosting online sales from 20 percent to as much as 41 percent, even as traditional retailers showed what is likely to be the smallest gain in more than 30 years.

"No matter how badly offline sales fared, online sales continue to shine -- mostly the (Web) businesses of bricks and mortar retailers," Forrester analyst Carrie Johnson said.

Final tallies are still pending, but initial data from sales made between Nov. 1 and Dec. 20 suggest online retailers showed strong growth without hitting their profit margins by giving away the store, as some had in the past.

"A couple years ago, there were freebies and huge discounts. This year the value was free shipping; you didn't see as many free giveaways," said NetRatings' chief e-commerce analyst Lisa Strand. "Toward the end of the season, you saw a huge shift toward shoppers coming online because of convenience rather than price and to avoid the crowds."

The exact amount of online sales growth differs among research and tracking firms because of varied methodologies.

For example, ComScore Networks, which uses technology to track transactions made by about 1.5 million of its panel members, said online sales excluding travel between Nov. 1 and Dec. 20 were up 23 percent from a year ago to $8.5 billion.

Meanwhile, Nielsen/NetRatings and Harris Interactive said sales excluding travel for the same period rose 20 percent to $11.6 billion. NetRatings surveys shoppers for its data.

Online comparison shopping service BizRate.com, which surveys consumers after they have bought something, said online sales totaled $11.53 billion -- up 41 percent from a year-earlier. BizRate.com lets consumers compare price, selection and service at more than 2,000 e-commerce sites.

Some adjustments are expected to all the numbers as the money spent in the week after Christmas is included.

[Fred Mertz]

I knew it! Good post Toddler.

[areafiftyone]

I have to admit that I shop alot on line. The shopping websites have improved dramatically and they are pretty secure. The only downside is spending money for shipping and handling but it is really convenient!

[aristeides]

Way to avoid terrorists while shopping?

[Phantom Lord]

I did the vast majority of my Christmas shopping in two places. Retail establishments prior to Dec. 1st when our sales tax went up, and online. A double tax protest in a way.

[alisasny]

I did 90 percent of my shopping online this year. Even got a huge tv shipped for free! Everything went well and most of all service was good. Even got to return some playstation games that were not good. Something you usually can not do in a brick and morter store.

Next year may be 100%!

[Phantom Lord]

The only downside is spending money for shipping and handling but it is really convenient!

How much is your time, aggrevation, and gas worth when you drive to the mall, and then store to store to do your shopping? Online you can do it all in a few minutes and never leave your chair.

Plus you dont pay sales tax!

I too do a lot of shopping online, a majority of that is done on eBay.

[alisasny]

And I also gave my UPS man a nice top for all the packages he delivered! Was so much nicer than dealing with the snotty retail store clerks around the holidays.

[Tijeras_Slim]

I did most of my Christmas shopping online. Its easier to find things that may not be available locally, do basic research on products, get good deals (even enough to offset shipping), and avoid crowds (always a plus). That being said, I do like to support local businesses that have treated me well, even if I could save a buck online.

[alisasny]

oops TIP not top......YIkes I need more rest..LOL

Used ebay as well this Christmas!

[Tijeras_Slim]

Haven't got the nerve up to try eBay yet. Have you had good results?

[lelio]

CNBC had a bit this morning about Amazon's "Delight-O-Meter" that measures their holiday sales going up 30+% . Part of that is that AMZN increased their holiday season by 10 days -- a week earlier in November and 3 days right up to Christmas.
To add to that, they are now the storefront for bricks and mortar stores and only get a commision on the sale, versus their books.
I think Amazon's a great company and I believe they're going to be a big gainer in the next couple of years but I trust their numbers about as far as I could throw Jeff Bezos.

[Poohbah]

And I also gave my UPS man a nice top for all the packages he delivered!

I'm not TOUCHING the double entendres you've made possible here :o)

[alisasny]

Very funny! Thanks for making me laugh! LOL

[Phantom Lord]

I love eBay. I have never had any trouble at all with any of the sellers (i only buy, dont sell) and all products have been exactly as advertised.

Granted, I am not on there buying expensive, rare, or collectable items that lend themselves to fraud.

I have had some incredible buys though. I got a China Cap (A giant stainless steel strainer) for $10 that retails from $80-100.

I buy my wife the "This Little Piggy" figurines for between $4 and $8 and they sell in the store for $25. And I got her the entire "Wedding" set for $26, and that has 10 pieces in it and retails for over $150!

My biggest score so far though has been a NADY wireless system for my guitar. For years I tried to find a used one cheap. But they were always $100 and up. I got mine for $56 delivered to my door, and the seller, as a surprise put a bag of pretzels from a local specialty shop in the box. And they were some of the best pretzels I have ever had.

eBay is great for finding things that you can not find anywhere else. If you want it, its on eBay.

[alisasny]

Give it a try. I had 3 great successes this month on some collectibles. Read feedback and be cautious of those with none or no prior sales.

[areafiftyone]

How much is your time, aggrevation, and gas worth when you drive to the mall, and then store to store to do your shopping? Online you can do it all in a few minutes and never leave your chair

I agree. The traffic going to the malls and stores is horrible. Also the lines at the registers are out of this world. I just recently started shopping for clothes on line which I was leery of because of fitting but I found I could send them back if they didn't fit and I don't have to pay too much for postage. I now keep different mailing envelopes and boxes for items that I might have to return via the post office.

[lelio]

I've sold a couple hundred dollars worth of my old books on half.com (eBay just bought them) and I've bought books off of there. Easiest thing in the world and I haven't had a problem with it.

[alisasny]

The fact that the feedback can not be deleted prevents a lot of the fraud. A reputable seller wants no bad feedback.

[Tijeras_Slim]

Thanks!