We're Shopping Faster, Holiday Online Sales Show

Web surfers spent less time--but more money--online this holiday season, according to two studies released Wednesday.

In December, people logged significantly less time online than in previous months. In fact, usage dropped by more than 15 percent from October to December, according to a study from Nielson/NetRatings. Average usage fell from 17.5 hours in October to 14.9 hours in December, and the number of online sessions dropped from 33 to 28 during that same time span.

Despite fewer sessions, and less time per session, Web users managed to spend $10.8 billion online during the holiday season (November and December), according to a separate study from Jupiter Research. That's a 54 percent increase over last year's total of $7 billion, and a 126 percent increase over the $3.1 billion spent in 1998.

While surging Internet adoption undoubtedly plays a role in the higher holiday sales numbers, the Jupiter numbers also seem to indicate that returning online shoppers have become more savvy and efficient. In total, 36 million consumers purchased items online this holiday season, spending an average of $304, according to Jupiter.

Taking an Internet Break

"Now that the Internet is part of more people's daily lives, many decided to take a break from it--like everything else--over the holiday season," says Sean Kaldor, vice president of e-commerce at NetRatings.

That's different from last year, when Internet usage actually spiked over the holiday season, he says. He notes that while usage declined throughout December, it dropped more noticeably during the last two weeks of the month.

For December, the average number of page views was 983, down from 1196 in October and 1123 in November. The average number of sites viewed per session October was 20; in December, it was 17.

The downward trend isn't a signal of waning interest in the Internet, but is more likely a seasonal trend, Kaldor says. Early numbers for the first week of January already show an upward swing in usage. Kaldor expects it will approach the more gradual monthly increases seen before November and December, he says.

As for the increase in online spending during this slow period, Kaldor says consumers simply made their online purchases early in the month this year--in part because online merchants scaled back their delivery promises. The result is a shorter online shopping season, but a higher per-day shopping average, he says.

Online Aids Offline Sales

Increasingly, online shoppers are visiting a store's online site, only to go to the bricks-and-mortar store to make the eventual purchase, Kaldor says the surveys show. So for every $1 spent online in December, sites with traditional retail stores generated another $1.97 in offline sales, he says.

For example, for every $5 in online sales at a site like BestBuy.com, people visited the site and then spent about $9.85 in the store.

As a result, in December the NetRating study shows $7.2 billion in online sales--which generated another $14 million in offline sales, Kaldor says.

"That's huge," he says. "And Amazon.com can't say that."

But what Amazon.com and other pure-Internet retailers can say is that they continue to provide better customer service than traditional retailers that also sell online, Kaldor says.

The NetRatings study examines customer satisfaction at some of the top online retailers, and the top seven of ten were pure e-retailers, he says. The top site: Amazon.com. "They have built a dynasty over there," he says.

One likely reason for Amazon.com's high marks is that many people are repeat customers. They know what they expect, and Amazon.com delivers, he says. Many of the customers visiting the Web sites of brick-and-mortar stores such as Walmart.com are first-time buyers, and they're still learning the ropes. As a result they often feel less satisfied with the experience, he says.