According to a report by Bloomberg.com, online spending is down this year. Experts speculate that online cosumer spending is down due to high gas prices ($3 a gallon in most US locations), higher energy costs, higher food costs, and declining home values.
According to the article, "U.S. retailers may see the worst holiday sales growth since 2002." The growth rate of U.S. internet sales is only at 18 percent as compared to the 26 percent growth rate last year.
Even the toy giant Toys-R-Us is seeing the effects of the slow economy. To encourage online purchasing, Toys-R-Us was offering free shipping on purchases of $49.99 or more, and a $20 discount off purchases totalling $100 or more made through Paypal.
The National Retail Federation in Washington predicts only a 4 percent increase in holiday sales for 2007, the smallest increase since 2002. If you are an online seller this holiday season, don't feel too bad, many others are feeling your pain.
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