Online sales this year's holiday season will increase 25 percent from last year's, reaching $18 billion, despite consumers' falling confidence and diminished discretionary income - and thanks in large part to the 2.5 million new online-shopping households expected this year, writes InternetRetailer, citing a new report from Forrester Research. Many shoppers are also expected to buy gifts online to take advantage of free shipping to be offered by 79 percent of online retailers.

Though some have speculated that high gas prices will drive shoppers to the web, Forrester disagreed: "If consumers are worried about paying $50 for gas, they're not going to jump online to spend their hearts out," said the report.

However, online retailers will face a weak first quarter as consumers redeem gift cards offline and their heating costs rise. Also, likely disappointment with timely delivery of holiday orders (last year, 57 percent said orders arrived on time) will keep some shoppers away in the first quarter.