Forrester Forecasts Double-Digit Increases for Online Holiday Spending

By Karla Robinson
November 9, 2012

“E-commerce has been on fire since its inception and it still continues to grow and outpace the overall retail economy,” says Forrester analyst Sucharita Mulpuru, who predicts online shopping will amount to $68.4 billion this holiday season, a 15 percent increase over 2011.
Although the rate of increase will stay the same (sales rose 15 percent last year as well), the number of online shoppers in the U.S. is expected to grow 3 percent.
Additionally, the average shopper will spend an estimated $419 online this holiday, which represents a 12 percent increase over 2011.
The report suggests three reasons for the shift to online shopping: 1) customers want to get deals and avoid crowds; 2) while mobile conversion rates remain low, mobile commerce will account for 40+ percent of retailers’ online traffic with improved mobile technology; and 3) consumer confidence in the economy has risen and holiday retail estimates are high.
“Still, the trend largely benefits online-only retailers, like Amazon, which means that physical retailers must come up with a plan to keep consumers coming to the stores or their Web sites,” suggests AllThingsD.
Brick-and-mortar retailers have made efforts to fight back with price matching and same-day delivery, but Mulpuru expressed doubts that the maneuvers will dent Amazon’s sales.

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