by Doug Desjardins
Driven by social network promotions and some bad winter weather, online sales rebounded in a big way during the holiday season, jumping more than 14 percent. 
According to research firm Coremetrics, online sales from Thanksgiving through Christmas Eve jumped 14.6 percent compared to the same period in 2008. That estimate exceeds the single-digit increase most analysts were expecting after a disappointing sales season in 2008.
"Clearly, retailers have done a tremendous job of pushing bargains not just on a specific day but throughout the season," said John Squire, chief strategy officer for Coremetrics. "When you combine the special promotions with guaranteed delivery dates, up-to-date inventory information and the ability to shop from the comfort and warmth of your home, it's easy to see why online shopping proved compelling this season."
Online sales were helped by a blizzard that crippled several major East Coast cities including Washington D.C., Philadelphia and New York City the weekend before Christmas. The storm drove people online and generated a 20 percent increase in sales on Saturday, Dec. 19 and a 24 percent increase in sales on Sunday, Dec. 20. Sales for the week before Christmas climbed 14.6 percent.
"In past years, we've seen a big drop in online sales the weekend before Christmas, largely because of the end of free shipping," said Squire, adding that many "last minute shoppers who intended to hit the malls that weekend really had no option but to shop online." Many online retailers also took advantage of the weekend storm by extending free shipping offers, in some cases up until Dec. 23.
E-commerce research firm comScore also reported a late surge in online shopping just before Christmas, with online shoppers spending a record $4.8 billion the week ending Dec. 20. "The major snowstorms hitting the Eastern seaboard over the weekend appear to have given holiday e-commerce an additional boost, resulting in the heaviest online spending week on record," said comScore chairman Gian Fulgoni. ComScore's tracking shows that sales increased consistently throughout the holiday season starting with Black Friday (10 percent), Cyber Monday (5 percent) and peaking Dec. 15 when online sales set a single-day record of $913 million.
Online sales were also buoyed by retailers using social network sites like Facebook and Twitter to promote sales for the first time. According to comScore, 28 percent of shoppers surveyed said their holiday buying decisions were influenced by social media promotions.
While sales increased across most categories, e-books had a breakout season. Amazon reported that sales of e-books exceeded regular book sales for the first time ever on Christmas Day, helped in large part by price reductions on e-readers like Kindle.
Resources
Online Retail Sales Exceed Expectations Leading Up to Christmas, Reports Coremetrics
Web Retailers Extend Shipping Deadlines
E-Book Sales Overtake Print for First Time
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