(Source: Ventura County Star)

By Allison Bruce, Ventura County Star, Calif.
Nov. 8--This holiday season, consumers plan to spend less -- so retailers are trying an array of tactics to get a larger share of their online dollars.
Online sales have become an important part of overall revenue for retail businesses, and the shopping season during the last two months of the year can make or break the bottom line.
To lure shoppers to their sites, companies are using the tried-and-true tactics of free shipping and online specials, but they also are testing the appeal of online layaway programs and gift guides. Some also are increasing their use of Facebook and Twitter. Target is even launching an iPhone application.
Online sales have grown in importance for retailers as the way people shop has changed, said Barbara Gross, former marketing professor at CSU Northridge.
"People have embraced it," she said. "A lot of people, especially around the holidays, have a pretty good idea what they want to buy for gifts ... it's easier to do online."
Online they don't have to fight crowds and stand in line and can benefit from special deals, she said. Many retailers now send special offers directly to a shopper's e-mail address so all they have to do is click on the coupon and start shopping.
Retailers are afraid in the current economy that consumers won't shop and are trying to do things to make them comfortable with their purchases, she said. Something like free shipping removes a barrier to making a purchase, making it that much easier to commit.
"It's not realistic to think a family where one person has lost their job will buy no holiday gifts," she said, but noted they will probably trim back. "Retailers are fighting for that share of reduced consumer dollar."
The National Retail Federation predicts a 1 percent decline in total sales to $437.6 billion in November and December.
Online sales, or "e-commerce," have been pretty dismal this year. In the second quarter, U.S. online retail spending totaled $30.2 billion, down 1 percent from a year ago, according to comScore. That's only the second quarter on record when e-commerce spending declined from the previous year.
Last year's results
During the fourth quarter of 2008, online retail spending was 3 percent lower than the year before from Nov. 1 to Dec. 23, the last day to make a purchase to get delivery by Christmas Eve. The drop reflected five fewer shopping days between Thanksgiving and Christmas and the economic downturn.
Though sales were down, some retailers actually had more people visiting their Web sites last year in search of deals, comScore reported.