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E-Commerce Christmas Wishes Come True

By Joshua Hallford
01.11.2001
Categories

Holiday spending grew 58 percent to 100 percent this past season, meeting analysts' expectations, two firms reported.

E-commerce measurement firm BizRate.com (dossier) tallied e-commerce spending between Thanksgiving and Christmas at $6 billion, up from $3.8 billion in 1999. This did not meet the original forecast of $6.1 billion. BizRate.com was unsure of this figure midseason and revised its estimate down to $5.7 billion in late November.

A continuously optimistic stream of data came from PC Data and Goldman Sachs whose tally for November and December was $10.7 billion, more than double the $5.2 billion in 1999. Both research firms did agree that the shopping season was characterized by heavy and sustained buying right up to the end of the season, a notable change from the comparatively shorter 1998 and 1999 holidays.

Peak holiday shopping occurred the second week of December, when sales exceeded $220 million for several days. The single-biggest online shopping day was Dec. 18, when consumers spent $254 million, up from 1999's one-day high of $178 million on Dec. 13.

Between the two researchers there was some dispute about which categories grew the most this season. Home and garden items, as well as toys, experienced the largest increases, according to BizRate.com.

But PC Data and Goldman Sachs saw the most growth in consumer electronics and entertainment items.

BizRate.com found that sales of computers and electronics brought in 38 percent of the e-commerce revenues, while entertainment items such as books, music and videos accounted for 15 percent. PC Data agreed that computers were the top sales category despite the minimal growth in this area since last year. But it said apparel was in second place.

Analyst firms will continue reporting final assessments of the holiday e-commerce throughout January.



Correction:
A previous version of this story incorrectly reported e-commerce spending figures for BizRate.com.