Online retailers await 'Cyber Monday'
Friday November 25, 5:33 PM EST
By Lisa Baertlein
LOS ANGELES (Reuters) - U.S. online holiday sales are
expected to hit nearly $20 billion this year and should take
off on Monday, when consumers return to work and their fast
Internet connections after the long Thanksgiving weekend.
"Cyber Monday," the term coined for the Monday after
Thanksgiving, comes on the heels of the busy "Black Friday"
shopping day when many brick-and-mortar retailers begin turning
a profit.
The good news for online shoppers this year, is that "Cyber
Monday" is becoming the Web shopping equivalent to "Black
Friday" when retailers launch major sales and discounts to
drive traffic, analysts said.
Consumers are seen spending $19.6 billion on non-travel
goods on U.S. Internet sites during November and December, up
24 percent from $15.8 billion during the same period last year,
according to comScore Networks.
That accounts for less than 5 percent of total holiday
sales in the United States but excludes large corporate
purchases and sales on auction sites like eBay Inc. (EBAY),
the most popular shopping site on the Web.
"Most people who shop online do it at work, not at home,"
despite rising rates of high-speed home Internet connections,
said Jay McIntosh, Americas director of retail and consumer
products at Ernst & Young. Work connections tend to be faster
than those at home, he said.
While companies like Amazon.com (AMZN) were first to make
a splash selling online, traditional retailers have helped to
drive sales with investments in their own Web sites and by
offering consumers the chance to return Web purchases at
physical stores, McIntosh said.
Concerns about returns and the inability to touch and feel
items are major issues now for consumers who in recent years
had listed security as a top Web-shopping worry, he said.
Massive site outages, which dampened online holiday
shopping in its early years, are now uncommon. Still, some
shoppers were reporting on Friday that online ordering was
temporarily unavailable on Best Buy Co. Inc.'s (BBY) Web
site.
A spokeswoman said the company had been limiting the number
of connections to its site due to heavy traffic following the
debut this week of Microsoft Corp's (MSFT) Xbox 360 video game
console, for which Best Buy is the retail launch partner.
FREE SHIPPING RULES
While today's Web shoppers are wooed by conveniences such
as avoiding store lines and driving costs, as well as
price-comparison tools offered by Shopping.com (SHOP),
Shopzilla, Yahoo Shopping (YHOO) and Google's (GOOG)
Froogle, a survey from online retailer association Shop.org
said the biggest draw was free shipping offers.
Jupiter Research analyst Patti Freeman Evans said consumers
will be more concerned about prices this year due to higher
home heating costs and added that many shoppers believe they
can find better deals online because there is more choice.
"Pricing online is competitive. Sometimes you can get
better deals online, sometimes you can get them in stores with
sales and coupons and rebates," she said.
(Additional reporting by Jim Finkle in Boston)
©2005 Reuters Limited.
|