Jupiter Report: Holiday 2007 Online Sales to Surpass $39 Million

Online retail sales for holiday 2007 will increase by 20% over 2006, surpassing $39 billion, according to Jupiter Research. This is higher than the projected overall online sales growth of 19% for 2007.

On its Holiday Online Retail Holiday Forecast, 2007, Jupiter notes that existing buyers will up their holiday spending by 13% to an average of $314 per person. The number of online users who plan to buy over the Web will increase by more than 6% compared with the number who did so last year.

Given all the hype about social media these days, social and community sites aren't generating much interest, at least as places to research or shop for gifts. Just 3% of users who plan to buy online this holiday season (and 6% of those in the age 18-34 segment) plan to add a wish list or gift list to their MySpace, Facebook, or similar Website page to help friends and family select gifts.

How are Web marketers looking to attract shoppers to their sites? Jupiter's research finds that more than 50% of retailers will increase their efforts with search engines.

And more retailers this year (29% vs. 22% in 2006) will use unrestricted free shipping offers. In fact, the percentage using free shipping offers with restrictions fell from 16% in 2006 to 6% this year.