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.

[Phantom Lord]

I gave a seller a "neutral" feedback, and in the feedback praised the product, but said the seller sucked at communication.

The seller gave me negative feedback (my only one in 6 years). He complained that I gave him neutral but said his product was excellent. I pointed out that I sent him over 10 emails requesting a response about the shipping of the product and to confirm that he got my payment, which I made under 10 minutes from the close of the auction. The seller NEVER once replied to me, then gets pissed that I gave him a neutral feedback.

I have also won several auctions below the reserve price and emailed the seller asking if they would sell it for my winning bid even though it didnt meet the reserve. Some have and some have not.

[TLBSHOW]

This shows just where the people were, right here on line and not in line. From elections to shopping to just about everything the internet has proven to be where the big boom is for this new century.

If your not on line your in line I always say to people!

[John H K]

Plus you dont pay sales tax!

You've probably got about 1-2 years at most to enjoy that....the disparity between Brick & Mortar and on-line sales this Christmas is going to drive the collection of sales tax on mail order even faster than the B & Ms want....and they're on it big time.

[alisasny]

I have also won several auctions below the reserve price and emailed the seller asking if they would sell it for my winning bid even though it didnt meet the reserve. Some have and some have not. Great idea especially for concert tickets!! Will try that!

[Phantom Lord]

As stated above though, I do a vast majority of my buying on eBay, and outside of retail establishments selling on eBay, there is no chance of there being sales tax, and there won't be sales tax on a vast majority of the sales on eBay as the good are being sold just as if at your neighborhood garage sale.

[alisasny]

Did you catch the party thread? I forgot to bump you and tell you that you were missed!

http://www.freerepublic.com/focus/news/813405/posts?page=222#222

[kaktuskid]

Clicks may be slowly taking over from bricks retailwise...no traffic jams, long lines in stores, and snotty salesclerks.

[John H K]

Never underestimate the power or ability of a government to tax what it wants to tax. I forgot to mention the precarious condition of the finances of almost every state is going to drive things, too.

[alisasny]

Regarding taxes. There was an error on my phone bill this month so while I was on hold I added up the taxes. Bill was around 66 and taxes were about 15 bucks off hand. Now that is very sick.

[Alberta's Child]

Bill was around 66 and taxes were about 15 bucks off hand. Now that is very sick.

If you itemize your taxes you should try to deduct those phone taxes. It's probably not legal, but on principle it makes sense (you are allowed to deduct your state and local taxes).

[agenda_express]

Yep - 90% of MY shopping was online this year. I used CNET Shopper (http://shopper.cnet.com), DealTime (http://www.dealtime.com/), epinions (http://www.epinions.com/) and BizRate (http://www.bizrate.com/) to find deals.

I didn't pay shipping or tax on anything, plus I found some online coupons at different places and saved even more.

Here are a couple of coupon sites:

http://www.techbargains.com
http://www.couponing.about.com

A few of the good places I have bought:

http://www.shopharmony.com (Handspring Visor - reconditioned)
http://www.ubid.com (2 Brand NEW Rockford Fosgate CD Players for vehicles)
http://www.bn.com (books and dvd's)
http://www.amazon.com (tools, etc)
http://www.techdepot.com (DVD Player - EXCELLENT DEAL)
http://www.crutchfield.com (CD player for Mom's car)

I hope this helps someone.


Agenda_Express [Prodesse Non Nocere (To do good, not to do evil)].

[Phantom Lord]

Regarding taxes. There was an error on my phone bill this month so while I was on hold I added up the taxes. Bill was around 66 and taxes were about 15 bucks off hand. Now that is very sick.

And one of those taxes was implemented to help pay for the Spanish-American War over 100 years ago! The GOP congress passed a bill repealing the tax and Clinton vetoed it.

[Alberta's Child]

Never underestimate the power or ability of a government to tax what it wants to tax. I forgot to mention the precarious condition of the finances of almost every state is going to drive things, too.

And never underestimate the ability of the American consumer to figure out a way around those taxes -- just ask all those folks in New York City who are taking advantage of a dramatic rise in black-market cigarette sales to avoid paying the huge city and state tobacco taxes.

[N. Theknow]

...no traffic jams, long lines in stores, and snotty salesclerks.

More like non-existant sales clerks or even worse, the sales clerk that is as dense as a brick with no holes. If they had a thought they wouldn't recognize the symptoms.

[My2Cents]

My wife takes personal credit for the surge in on-line shopping this Christmas.

[MineralMan]

I'm a very tiny web retailer...not big enough to make even the smallest dent in the stats, but my sales are up 40% from last year, over the entire year, and up about that for the Xmas season.

I don't have all the bells and whistles....but I do have customers, who have grown in number during the 7 years I've been selling on the web. I wouldn't even dream of opening a real-world shop at this point.

Those of us selling full time on websites have been aware of the growth for some time now, and it's going to continue, I think.

Sorry I can't disclose my site's URL, but there are privacy issues here on FR.

[Phantom Lord]

Sorry I can't disclose my site's URL, but there are privacy issues here on FR.

You sell "marital aides" don't you? LOL! And if so, FReepmail me a link!

[brooklin]

Ebay is fine, just know what you are looking for and be aware of the actual price of the object.

[dalebert]

I hate to say it but I did all my shopping on line this year and so did most of my friends and family. There were lines at the malls my area before Christmas so I just let my fingers do the shopping rather than hassle the crowds.Better selections at better prices.