Commentary

Ho-Ho-Ho Still Going Up On the Keyboard

Ho-Ho-Ho Still Going Up On the Keyboard

eMarketer reports that online consumer spending will reach $10.7 billion in Q4 2001 -- a record quarter for the internet channel and a 20.2% increase over last year. Compared to the 2000 holiday season, 14.1 million more people will buy online this year.

The report underscores the fact that its projection is one of many, with nine research firms offering nine figures, ranging from $9.5 to $12.4 billion. The eMarketer numbers, however, are based on a purchasing model aggregating data from dozens of sources. Additionally, eMarketer is benchmarking its e-retail projections against the quarterly assessments from the US Department of Commerce.

Complicating matters, research firms have varying definitions for the holiday period. Many, define the holiday season as October through December. Some include only November and December, and one includes just the five weeks before Christmas. Additionally, two include the historically large, but volatile, travel sector in their projections.

The eMarketer report finds that in Q4 2001, 58.7 million US residents will buy online, spending an average of $182.25. Spending will be affected by several factors this year:


- There will be 14.1 million additional online buyers in Q4 2001, 4.9 million of them buying online for the first time
- Shopping online is perceived as more convenient and now safer than malls and shopping centers
- Many will shop online instead of traveling to deliver gifts to loved ones
- The deteriorating economy will negatively impact online sales

"The economic malaise will constrain online and overall retail spending this year," said Ramsey. "Unlike previous years where online spending rode the roller coaster straight up, regardless of overall retail activity, this year e-commerce will be more closely aligned with general patterns of consumer spending."

You can find out more here.

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