The ease and convenience of shopping online is starting to win over some skeptics. Early reports of online sales show that Santa might receive more e-mailed wish lists in his e-mail inbox and fewer letters in his traditional mailbox.
As of noon Friday - one of the busiest shopping days of the year - America Online's unaided shopping traffic was up 50 percent for the week compared with the same period in 2001. Unaided traffic refers to traffic to AOL Shopping that was not driven by promotions.
AOL's early indicators show the most searched items are digital cameras, Hot Wheels toy cars and Barbie Dolls.
The Internet service provider with 35 million users said more than 20 million AOL members now shop online, a 21 percent increase from the 16.8 million members who were shopping online this time last year.
And shoppers are spending more. Thirteen million AOL members shopped online in October, spending about $289 each. Total AOL member spending for the month came to $3.8 billion, a 39 percent increase over October 2001.
Roper Starch Worldwide and Audits & Surveys Worldwide, two online market researchers, gathered data in November from 1,001 home Internet subscribers. They found that the amount spent by each online shopper jumped 25 percent over the past year, from $433 in 2001 to $543 in 2002.
RoperASW's "Cyberstudy on E-Commerce" found more than half of the parents, 56 percent, said their children asked them to buy something they saw online.
The biggest deterrent to shopping online, according to RoperASW, is concern about the security of credit card information.
Maritere Arce, spokeswoman for Consumers Union, publisher of Consumer Reports, said online shoppers should carefully read the merchant's online privacy policy, to ensure personal information will not be shared or sold to third parties.
"And under federal law, your liability for unauthorized credit card charges is limited to $50," Arce said. "In fact, some credit card issuers and Web site operators say that under certain circumstances they will even cover that amount."
Arce said the level of protection with credit cards is better than other forms of payment such as cash on delivery, certified checks and money orders.
"Credit cards are safer than debit cards, which you should avoid using online because of the additional risks posed if your debit card number is stolen," she said. "Carrying a debit card is like carrying a checkbook full of signed checks, so use with extra caution."
Consumers Union recommends keeping records of all online transactions and making printouts of Web pages indicating the company's name, phone number and address and order confirmation pages with descriptions of items ordered.
"Make sure that all of these browser-page printout items are dated," Arce said. "If not, write the date on them."
Consumers Union also recommends buying early if shopping online. Its statistics show the peak buying day for online shopping in 2001 was Nov. 28 and online shopping tapered off approximately seven days before Christmas.
"Comparison-shop both online and off to make sure that you are getting the best deal for your money," Arce said.
John Sung, 25, of Dayton does online comparison shopping.
"I use Cnet.com," said Sung while price checking items in the Dayton Mall last week. "As far as electronics, it tells you the product rating and best Web sites to buy the item from. For instance, it'll compare electronics from Circuit City and Best Buy."
Meanwhile, on dealtime.com consumers can find the products they want, which stores are selling it and compare prices in minutes, from a Sony DVD player to Donna Karen New York low-rise jeans.
DealTime projects its 2002 revenues will hit $30 million, more than double its income of $14 million in 2001. Visits to DealTime have tripled in the past year. Traffic has increased by more than one- third since January 2002.
Whether consumers shop online or in traditional brick-and-mortar stores, one shared hassle is returning gifts. Retail experts say the advantage goes to the traditional retailers.
"Return shipping costs can be expensive, and some e-merchants charge a re-stocking fee on returned products," Arce said.
But the savvy online shopper can take advantage of the situation by doing business with such online firms as ReturnBuy.com, which sells refurbished returned electronics from in-store and online merchants at a discount.
"Returned, open-boxed items have always been a challenge for retailers and manufacturers," said Walt Shill, president and chief executive officer of ReturnBuy.com. "Because most returned items are due to consumer remorse, ReturnBuy's customers can purchase a TV at half the cost because it didn't fit in someone else's entertainment center."
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