"The increase in on-line holiday shopping sales will be driven by increases in on-line users, buyers, and most importantly, the experience level of on-line buyers, which our research indicates is the single most important predictor of online spending," said Mike Cruz, a Gartner analyst.
Of the total on-line holiday sales, 53% or $13.4 billion, will be made outside of North America compared to 50% last year. While North America will continue to lead all regions in on-line holiday sales, the other regions are showing stronger growth rates.
"In 1999, many consumers were disappointed with the operational and customer service performance of on-line vendors. The result was that over half of those who bought gifts on-line in 1999 stayed away from holiday buying on-line in 2000," said David Schehr, research director for Gartner. "Satisfaction was much higher in 2000, with three-quarters of buyers saying they were very satisfied with their experience. This means there will be less attrition from those who bought on-line last year, and those returning this year are likely to increase their spending levels."