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Online Holiday Shopping Season Hits $23.2 Billion
"ROCHESTER, N.Y. -- Online shoppers in the United States spent $23.2 billion during the 2004 holiday season, excluding travel, according to the latest eSpending Report from Goldman, Sachs & Co., Harris Interactive and Nielsen//NetRatings. This reflects a 25% increase from the $18.5 billion spent online during the same timeframe in 2003.Online consumers spent the most on apparel/clothing, totaling $3.8 billion, or 16% of total online revenue, the report found. The toys/video games category was second with $2.5 billion, or 11% of online revenue, while the consumer electronics category rounded out the top three with $2.3 billion, or 10% of total online revenue.Categories generating the highest year-over-year growth in holiday dollars included jewelry, flowers and computer hardware/peripherals. Jewelry jumped 113% to $1.9 billion during the 2004 holiday season compared to the $888 million spent in 2003. Floral retailers experienced a 59% surge in online revenue to $530 million while computer hardware/peripherals increased 30%, generating $2.1 billion in online revenue this year. "Online shopping contributed significantly to overall 2004 holiday sales by attracting consumers through a broad product selection," said Heather Dougherty, senior retail analyst, Nielsen//NetRatings. "Consumers have become accustomed to purchasing online over the years and look to the Internet to find comprehensive product information, competitive prices and easy gift delivery allowing them to have more time to spend on other holiday activities."Overall, the majority of online consumers were satisfied with this season's Web shopping experience: 37% were very satisfied and 24% were somewhat satisfied, the survey found. In addition, 30% of respondents felt this year's online shopping was better than last year.Several factors contributed to the success of online shopping in the 2004 holiday season. Similar to last year, 36% of respondents cited a preference to avoid crowds as the top reason to buy online rather than visit a store. Also, 36% cited finding a lower price online was the reason they took to online shopping, while a wide product selection rounded out the top three reasons with 33%, the survey found. "