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According to a report that comScore released on Sunday, e-commerce holiday sales have now reached $25 billion. That number, which includes the first 39 days of the holiday season, represents a 15% increase over the same time period last year. A combination of strong marketing, free shipping, and attractive offers have enticed shoppers to spend money online rather than at retail locations.
The mid-income Americans, those that earn $50,000 to $99,000 annually, have increased the amount they spend by approximately 20%, upper income Americans have increased their online shopping budgets by 16%, and Americans earning under $50,000 are spending 1% less this year. While those earning under $50,000 this year are spending less each, the number of shoppers in this category has increased by 10%.
Gian Fulgoni, the comScore chairman, said the following of the strong holiday sales:
“The most recent week of the online holiday shopping season saw growth rates remain in line with the season-to-date at 15 percent and three individual spending days eclipse the $1 billion threshold. These highlights represent another very positive sign for the holiday shopping season, as the week following ‘Cyber Week’ often experiences relative softness in spending momentum due to retailers pulling back on their promotional activity. As we enter what will be the heaviest week of the season for online retailers – beginning with ‘Green Monday’ on December 12 – all signs are now pointing to a strong finish to the season.”
Green Monday, which was initially named by Ebay in 2007, is the second Monday during the month of December (today). The reason Green Monday is one of the largest shopping days of the year is it is the last day many retailers will guarantee Christmas delivery without requiring consumers to pay expedited shipping charges. For five out of the past six years, Green Monday has been either the top-ranked or second-ranked online shopping day of the holiday shopping season.
With the 2011 holiday season having already producing six online shopping days that surpassed $1 billion in sales, most traditional retailers are feeling threatened by the increasing number of consumers completing Christmas shopping online.
[Sources Include: comScore]