E-Commerce Holiday Shopping Gift Purchases Surge 25% Over 2003 Christmas Period

The latest figures released confirm that online shopping for Christmas gifts in 2004 soared to US$23.2 billion, a 25 percent increase from the $18.5 billion spent online during the same period in 2003. Consumers reported clothing as the category they spent the most money on, totaling $3.8billion or 16 percent of total online revenue.

Purchases of toys/video game Christmas gifts was second with $2.5 billion, or 11 percent of online revenue, and the consumer electronics division was third with $2.3 billion, or 10 percent of total online revenue.

The e-commerce gift categories reported to have produced the highest year-over-year growth in holiday spending went to jewelry, flowers and computer hardware/peripherals. Jewelry gifts jumped 113 percent to $1.9 billion as compared to $888 million in 2003, Christmas flower retailer sales surged 59 percent online with revenue of $530 million and computer hardware/peripherals increased 30 percent to $2.1 billion.

One retail analyst said "Consumers have become accustomed to purchasing online over the years and look to the internet to find comprehensive product information, competitive prices and easy Christmas gift delivery, allowing them more time to spend on other holiday activities."

Reports also indicated that most online consumers had overall satisfying experiences with online holiday shopping. Factors included a preference to avoid crowds, finding lower prices online and a wide selection of Christmas gift ideas.