Season Surge in Online Holiday Buying

Craig  McLaughlin

December 21, 2006

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Our friends at KenRadio Broadcasting generously offered to share this information with us. Holiday online spending is breaking records again this year and shows no signs of slowing. Understanding changes in these trends for ’06 and setting up our clients to make the most of this opportunity in ’07 will be a key focus at Extractable during the next 6 months.

During the first 45 days of the holiday season, total online retail spending reached $19.48 billion, marking a 25% increase versus the corresponding days in 2005, according to a recent comScore Networks. Retailers have been aggressive this year with their online marketing efforts, targeting consumers with early season promotions. And now they’re looking finish off the season strong by tempting consumers to continue shopping online later, with guarantees of on-time delivery for items purchased as late as December 18. The growth rate of online retail spending accelerated during the latter part of last week, with sales on Friday, December 15 growing 38% versus the corresponding day last year, this demonstrates consumers? willingness to rely on retailers? late-season shipping guarantees.

On Monday, December 11, consumers set a single-day record for online spending with $661 million. Two days later, that record was broken as consumers spent $667 million online. Importantly, the growth rate versus year ago accelerated toward the end of the week, demonstrating that consumers are continuing to shop online later this season. Last week, online spending rose to its highest point of the year. Several records were set, including the highest single-day of e-commerce spending ever on Wednesday, December 13 when consumers spent $667 million online, up 29% versus the corresponding day last year. Later shipping deadlines this season and the fact that many consumers received a paycheck on December 15 could keep online sales in full swing early next week.

Latest Stats:
E-Commerce Statistics
$111 bln worth of products was checked out through self-checkout in 2005
$24.5 bln spent online in Q1 2006
$475 bln spent with store self-checkout machines
$80.8 bln spent online in the first half of 2006
1.6% of online store revenue is credit card fraud
10.2% of all auto insurance in Korea in 2005 was bought online
12% of all e-commerce payments in 2005 went through online payments systems
2% of teens purchased alcohol online
20% of travel searchers book immediately after finding a travel deal
27.4 mln US seniors have bought something online in the last 6 months
31% of hotel site visitors would rebook from hotel site
32 mln Brits to shop online by 2011
39% of gift card buyers buy them online
44% of home improvement do-it-yourselvers are women
53% of 18-34-year-olds spend 1-2 hours on researching product before buying online
54% of US shoppers say Internet is the most trusted shopping information source
55% of retailers implemented richer imagery, 47% implemented zoom tools
57% of Australian online shoppers prefer to pay by direct bank deposit
58% of parents will use online coupons for in-store purchases
59% of gift card owners spend more than gift card value when visiting the store
62% of e-commerce traffic happens on weekdays 8am-8pm Central
64% of women and 60% of men shop online
68% of Internet users use Web for fashion trend information
76% of Americans bought gift cards in 2005 holiday season
76% of consumers believe online shopping is safe
77% of online shoppers read reviews from other users
8% of e-commerce transactions is porn
82% of visitors to newspaper Web sites have bought products online
90% of travel purchases happen 1+ weeks after search
95% of affluent Americans bought online in 2005
Apparel and accessories online sales up 41% in 2005
E-commerce generated $80.8 bln in the first half of 2006
Gays and lesbians more likely to book travel online
Internet users 18-34 are 18% more likely to buy a car this year
Online cosmetics and fragrances sales to reach $800 mln by year-end 2006
Online merchants challenge 43% of credit card chargebacks
Online retail spending to grow to $95 bln in 2006
Online sales of luxury items up 28% in 2005
Online sales to reach $211 bln in 2006
Online shoppers and in-store pickuppers end up spending 58% more
Retail e-commerce to reach $144 bln by 2010
Retail spending in China to reach $1.2 trillion in 2010
Top hotel sites in customer satisfaction: Expedia, Travelocity, Hotels.com
Top online stores on customer satisfaction: Netflix, Amazon, Newegg.com
UK e-commerce up 28.9% to $14.31 bln in 2005
UK online shoppers spend 1,744 pounds online every year
US e-commerce up 3.3% in Q4 2005, 2.4% of all sales were e-commerce
US watch sales down 4.9% in 2005

Data provided by Ken Rutkowski at KenRadio Broadcasting.