With the holiday season sneaking up on shoppers, online retailers are projecting a 29-percent increase in online sales compared with last year, officials say.
David Berkowitz, spokesman for the online research firm eMarketer, said the company is predicting online sales to reach $17.8 billion in the fourth quarter and is projecting continual growth over the next few years as Internet use increases.
"Each year, the rising uptake of broadband is making it even easier for people to quickly and conveniently go online," Berkowitz said.
"Meanwhile, online stores keep getting better - whether it's at delivery speed or ease of use or available merchandise, most sites that have made it this far are showing continual improvements."
In 2002, online sales increased by 48 percent from the previous year, as sales reached $76 billion, according to a Forrester Research study. The study also predicts online sales for 2003 to reach $100 billion.
Berkowitz said the more experienced a person is with the Internet, the likelier they are to purchase a product online, and the average experience level of Internet users is increasing.
Hani Durzy, spokesman for eBay, said the holiday season is popular for the online company, which has about 86 million registered users.
Durzy said at the end of October, eBay had increased its revenue estimate for the fourth quarter by $15 million.
Barbie, Bratz dolls, Care Bears and G.I. Joe are expected to bring in large sales for eBay, Durzy said.
"Toys are crucial," he said. "But we also see home electronics, holiday-theme collectibles and jewelry and apparel fashion selling well."
As the economy grew by 7.2 percent in the third quarter, online retailers aren't alone in having optimism for holiday retail this season. Michigan retailers are projecting a 5-percent increase in holiday sales over last year's figures, according to the Michigan Retailers Association.
Michigan, however, faces a $920 million budget shortfall and an unemployment rate of 7.4 percent, according to the state Department of Career Development.
Despite economic woes, online retail hasn't been affected by in-store retail, said Tom Scott, spokesman for the Michigan Retailers Association.
"The businesses that really integrate the world of brick and mortar and online shopping are the ones who are doing the best with e-commerce," he said.
But as more people begin to shop online, many others are illegally searching the Internet for credit card numbers to use in their own online purchases.
To protect themselves, people need to be aware of the dangers of online shopping and be informed of how to protect themselves, said Scott Thomas, division manager of computing services at the MSU Computer Center. Internet users should make sure they know the online retailer and are using a secure site, preferably one with an Secure Socket Layer, or SSL transmissions, which deeply encrypt sites for privacy, he said.
"General things to look for are a privacy statement from the company, a lock and key icon in the corner and if the company has an 800 number," Thomas said.
"If you get on a Web site and are having a hard time finding out who it is, that is one of several warning signs. Any mom and pop business can put up a Web site and get your credit card number - it can be a big problem."
