'Cyber Monday' sizzles with US online shopping

Nov 29, 2011
US shoppers were on pace to drive "Cyber Monday" sales to a new record high as people flocked the Internet to snap up deals offered by online retailers.

US shoppers were on pace to drive "Cyber Monday" sales to a new record high as people flocked the Internet to snap up deals offered by online retailers.

By mid-afternoon in New York, IBM Benchmark reported that online sales on the Monday after the Thanksgiving holiday were 15 percent higher than they were at the same point last year.

Cyber Monday of 2010 marked the first time online sales in the US broke the billion-dollar mark and this year, research firm forecasted the tally for the day will be $1.2 billion.

"IBM (Benchmark) is reporting very healthy online sales growth," said eMarketer principal analyst Jeffrey Grau.

"Overall, it is certainly shaping up to be a good season."

Cyber Monday was launched in 2005 by a US national retail association to bring online shopping into the mainstream.

As lifestyles increasingly revolve around the Internet, people in the US are growing more comfortable with making purchases online.

IBM Benchmark reported that 7.4 percent of Cyber Monday shopping as of mid-day was done on Internet-linked such as smartphones and tablets.

"E-commerce is sort of reshaping the landscape," Grau said. "More consumers are saying they want to shop online."

Retailers that operate real-world shops are under pressure to compete with online bargains or risk losing customers to Internet-only shops such as Amazon.com and Newegg.com.

US retailers are also very sensitive to the limping economy and troubling unemployment figures, according to Grau.

"The way to deal with it is to be aggressive and early with promotions," the analyst said. "Retailers are offering some of their best deals online."

It remained uncertain whether in deal-hunting days after Thanksgiving signaled a booming season in store for retailers.

It could be that budget-conscious shoppers will close purses after snatching up bargains.

"People could be loading up at the front end," Grau said. "I wouldn't be surprised if we saw a slowdown."

Despite more buyers turning to Internet shops, eMarketer believed overall US retail sales for the year would see "meager growth" of about three percent thanks to sales this holiday season.

Explore further: EU Parliament votes to break up Google

add to favorites email to friend print save as pdf

Related Stories

Retailers look to stretch out Cyber Monday push

Nov 23, 2009

(AP) -- Retailers are thinking beyond Cyber Monday - a holiday marketing promotion many push for the Monday after Thanksgiving - and trying to spin their discounts into into Cyber Weekends or even Cyber Weeks.

Most online shopping done by a few

Dec 02, 2005

Do you ever get the feeling that just a few people are doing most of the online shopping? Well this looks to be true, reports analyst firm Nielsen//NetRatings, which released a survey Friday showing that the heaviest online ...

Recommended for you

EU Parliament votes to break up Google

Nov 27, 2014

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

Nov 27, 2014

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

Nov 26, 2014

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.