Stuffed Stocking for E-Tailers

Although 2006 may not have been terribly good to online retailers, they may find their stockings overstuffed this month -- by far the most important month to their revenue.

Despite mixed figures about the strength of the overall holiday sales market, there are a number of indicators pointing to a stronger-than-expected season for online sales.

Online during the holiday season has always been a small fraction of overall sales, but its rate of growth isn't slowing as it gets larger. According to ComScore Networks, online spending rose 25% to $15.6 billion in the 38 days through Dec. 8, above the 23% growth rate for the comparable period the year before -- and even faster than the 24% rate that ComScore had forecast.

Last year's peak day for Internet spending, Dec. 12, brought in $566 million, but ComScore expects the peak day this year, whenever it comes, to bring in $700 million.

Other data from the International Council of Shopping Centers over this past weekend boded well for a rise in late Christmas shopping. The Council found that shoppers surveyed said they'd finished 36% of their shopping by last weekend, down from the 50% figure last year. If those shoppers decide to do more shopping on the Internet to avoid crowds, it will help the e-tailers even further.