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Analysts expect another online shopping boom

The B2C sector may be going through hard times financially, but the Western holiday season will bring another boom in online shopping.

Business to consumer portals may be losing money and going under, but analysts still think online shopping will boom in the forthcoming Western Christmas season.

Jupiter Communications predicts shoppers will spend nearly $12 billion online in November and December, a 66% increase from last year.

Gartner Group is even more bullish. It projects $19.5 billion in fourth quarter online consumer spending, an 86% increase on a year ago.

Both the growth projections are below last year's spectacular year on year rise of 126%, however.

Ken Cassar, a senior Jupiter analyst, says growth will slow partly because retailers will focus on getting products to customer, rather than just going for volume and revenue. Last year's spectacular growth in online spending was accompanied by reports of terrible customer service and goods that arrived late.

“I don’t know that we’ll see a lot of folks post profits this holiday season, but they’ll certainly move in that direction,” said Cassar.

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