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Holiday Online Sales to Increase 18 Percent to $26 billion

U.S. shoppers will spend $26 billion online during the 2005 holiday season, up 18 percent from $22 billion in 2004, writes InternetRetailer, citing JupiterResearch's U.S. Holiday Forecast, 2005. (Those figures differ from Forrester's in part because of varying definitions of "holiday shopping season.") An 11 percent increase in the number of online holiday buyers will be the primary factor for the increased spending; a contributing factor will be a 4 percent increase in spending per online buyer.

Nearly one-third of online holiday buyers said they would be willing to pay for shipping to avoid malls and gas expenses, but 56 percent said free shipping is more important this year than in the past.

Some 36 percent say they plan to spend more online during the holidays than last year; 48 percent plan to spend the same amount; and 16 percent plan to spend less. Consumers say they intend to increase spending in just five of 32 product categories, including consumer electronics, computers, and art and collectibles. In 2004, increased spending plans applied to nearly all categories.

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