Jolly Good News For Online Retailers This Holiday

Online consumers spent $8.5 billion in November, up 55% from 2002, according to the eSpending report released last week by Goldman Sachs & Co., Harris Interactive, and Neilsen/NetRatings.

A good portion of that, $1.6 billion, went toward clothing, while consumers spent $875 million on toys and video games. Books garnered $761 million, and videos and DVDs drew $758 million.

The season is off to a good start in part because consumers began shopping online earlier this year, says Abha Bhagat, senior analyst with Nielsen/NetRatings.

But there are other factors boosting sales. "People are more comfortable shopping online, and there's a greater depth and breadth of products online. And the improving economy is a factor." Brand recognition, the use of search engines and shopping portals, and promotions and discounts also are driving sales.

Several analyst firms predict this holiday season will be a boon for online retailers. Jupiter Research said last month that it expects online retail sales to top $17 billion this year, a 21% increase over online spending in 2002. And Forrester Research estimates online holiday sales will rise to $12.2 billion.

This story courtesy of InformationWeek.