Shoppers snap up a record 108m items online

SEATTLE - Shoppers bought more than 108 million items online between November 1 and Christmas to set a new record worldwide, Amazon said yesterday.

The world's biggest online retailer said the greatest demand was for iPod players, video games and jewellery.

Although Amazon did not provide revenue figures, it said the busiest single day was December 12 when customers ordered 3.6 million items. Different models of iPods were the top three selling items in electronics.

ComScore Networks says online sales in the US are expected to jump 24 per cent to about US$19 billion ($28 billion) in November and December as the convenience of internet shopping and free shipping lure consumers.

The most popular goods on the web include clothing, electronics and toys.

"People bought more than last year," said Heather Dougherty, an analyst at Nielsen//Netratings in New York. "But you see the categories not changing much from years past. We all expected a heavy gadget-type of Christmas."

This year, Amazon introduced an online-gift organiser that allows users to build a list of the people they give presents to at Christmas and other holidays. The site also offered shopping guides from more than 40 magazines including Bon Appetit, Cosmopolitan, Esquire and Lucky.

Retailers including Amazon ratcheted up free shipping offers this year. This was the first holiday season for Amazon that offers unlimited two-day shipping for a US$79 annual fee.

Beginning in October, L.L. Bean provided free delivery on all items for the first time.

The free shipping may be coming at a price for Amazon though. The company reported net income fell in the past three quarters, partly because higher shipping costs shrank margins.

In October, chief executive officer Jeff Bezos said efforts to bolster sales by offering unlimited shipping for a flat fee would be expensive as transportation costs rose.

Forrester Research said 79 per cent of retailers planned to offer some form of free shipping, up from 64 per cent a year earlier. ComScore said discounted in-time shipping and last-minute promotions allowed consumers to push their online shopping later into the holiday season.

New York-based researcher Conference Board said a survey of 10,000 households showed 30 per cent planned to do more shopping online. Shoppers are also more comfortable buying big-ticket items on the web. ComScore, which monitors the internet usage of 2 million consumers, said they spent 50 per cent more on furniture and appliances and 59 per cent more on sporting goods in November.

"The luxury retailers have been successful in selling online, where before it was thought to be more of an in-store experience," said Dougherty.

- BLOOMBERG