In the fourth quarter, comScore said, U.S. retail spending was up 14 percent — to nearly $50 billion — compared to a year ago.

Of course, Amazon’s results include international sales, as well as purchases made from mobile phones, which comScore does not track, so the comparison isn’t exactly fair.

Still, despite Amazon’s exuberant performance compared to the market as a whole, it fell short of Wall Street estimates, which had expected sales to rise by more than 40 percent from the fourth quarter in 2010.

Last week, the earnings news led to Amazon’s stock tumbling in after-hours trading by nearly 10 percent, to $175.50. Since then, the stock has partially recovered, and is currently trading at $184.74 a share.

More findings from comScore’s fourth-quarter and year-end reports:

• The fourth quarter represented the ninth consecutive quarter of positive year-over-year growth, and fifth consecutive quarter of double-digit growth rates.
• For the entire year 2011, U.S. retail e-commerce spending reached a record $161.5 billion, marking a 13 percent increase from 2010.
• The categories that grew by at least 18 percent year over year: Digital content and subscriptions, jewelry and watches, consumer electronics, toys and hobbies, and computer software.
• 10 days in Q4 surpassed $1 billion in online spending.
• 52 percent of e-commerce transactions included free shipping, representing an all-time high.

The company earned $177 million, or 38 cents a share, on revenue of $17.43 billion.

Even though revenue was up 35 percent compared to the year-ago period, it fell short of Wall Street estimates. Fueling the bad news, Amazon also said net income fell 58 percent.

Amazon’s stock tumbled in after-hours trading, falling nearly 10 percent, or $19 a share, to $175.50. The stock recovered a tiny bit later in the session, trading down 8.8 percent.

Analysts had expected Amazon to report sales of $18.3 billion, up more than 40 percent from the fourth quarter in 2010, according to FactSet Research.

For the full year 2011, the company’s sales increased 41 percent to 48.1 billion, while net income fell 45 percent to $631 million, or $1.37 a share.

The Seattle-based e-commerce company, which is notorious for offering little insight into its results, did not stray from standard operating procedure. It’s still unclear how many Kindles and how many Fire tablets it is selling.

“We are grateful to the millions of customers who purchased the Kindle Fire and Kindle e-reader devices this holiday season, making Kindle our bestselling product across both the U.S. and Europe,” said Jeff Bezos, CEO of Amazon.com, in a statement.

But it did not get any more detailed than “millions.” The company added that during the nine-week holiday period ended Dec. 31, Kindle sales — including the Fire — increased 177 percent over the same period last year. Furthermore, the Fire was Amazon’s most-gifted and most-wished-for product.

The big wild card for the quarter was not supposed to be revenue, but margins. The low margins of the Fire, and the company’s gigantic investments in infrastructure spending, such as warehouses, were expected to weigh down earnings.

Analysts were estimating that Amazon’s operating margin would fall to 1.3 percent from 3.6 percent last year.

Sure enough, the company’s margins were down, but it wasn’t quite as bad as people thought it would be. Actual operating margin for worldwide sales during the quarter fell to 1.5 percent.

Many investors were hopeful that some of those investments would wane in the first quarter, as Amazon started to reap the profits. However, the company’s first-quarter guidance is also less than expected.

Net sales are expected to be between $12 billion and $13.4 billion, representing year-over-year growth of 22 percent to 36 percent. Amazon is also expecting an operating loss of $200 million to a profit of $100 million, suggesting that heavy investments could continue.

NOTES FROM THE EARNINGS CALL

• After a riveting rundown of the company’s balance sheet and income statement, Amazon is opening up the call for questions.
• First question everyone wants the answer to: Can you talk about Kindle hardware units? A non-answer: “The only thing I can help you with is the holiday season — unit sales nearly tripled with Kindle and Kindle Fire, so we are very pleased with the growth we have,” says CFO Tom Szkutak.
• In North America, Amazon saw strong growth in digital media, for books, video and music. “All of those grew really well,” Szkutak says, but he said that most notably the videogame category, including consoles and games, was up in terms of unit volume, but down in terms of revenue.
• Another media area that grew was physical books, which were up double digits in the fourth quarter year over year. “We are very pleased, considering the shift to digital content and the rapid growth of the Kindle.”
• Seventeen fulfillment centers were built in 2011, and more are coming in 2012, but no precise numbers yet.
• In Q4, the company had 56,200 employees, up 67 percent year over year. “The majority of those increases is in operations and the customer service area. It supports a lot of the growth, and you are seeing that in our operating costs. Certainly you’ll see that over time go in cycles, but we are feeding the growth we are seeing.”
• A question about whether Amazon will slow down its level of investment. “No. No. We learn every week, month and quarter about customer adoption, and we are looking at a lot of positive things across the business, including Kindle growth from the device standpoint, and the content that’s following that,” Szkutak says. “We are seeing strong growth in categories like soft lines, like clothing, and in consumables, and very good growth outside of the supply-constrained areas in consumer electronics. … There’s a lot of interesting opportunities to invest in, and we are pleased with the performance in Q4 and what it means going forward for us.”
• Will investments continue in Amazon Prime? “We are investing a lot there, and we are making sure we understand it very well. We’ll continue to monitor it very closely, and over time, we’ll be sharing more about how we are doing there.”

Although the season kicked off with a bang, there were fears that consumer confidence would fall as the end of the year approached. That did not happen, with people continuing to fill their virtual shopping carts until the very last minute; 10 individual days surpassed $1 billion in spending.

According to comScore, the final tally for online spending for the months of November and December was $37.2 billion, representing a 15 percent increase over last year.

ComScore tracks purchases made on Web sites from a fixed Internet connection, excluding spending done via mobile phones and tablets, so presumably the numbers could be higher.

While the numbers being reported sound positive, some analysts worry if they were enough to give giants like Amazon the growth rates needed to hit expectations. Wall Street analysts are expecting Amazon to post a fourth-quarter growth rate of 38 percent, which would mean it would have to be growing twice as fast as the average market.

But Chase Paymentech’s annual Cyber Holiday Pulse Index painted a rosier picture of the holiday season. Based on tracking 50 of the leading online merchants in the U.S., the report found that during the final two months of the year, transactions were up 37 percent and sales rose 25 percent.

One of the reasons for the huge gains, it said, was because Christmas fell on a Sunday this year, allowing merchants to guarantee shipping much later into the week and giving consumers more time to make online transactions.

To be sure, the increase in online shopping is coming from somewhere — most likely at the expense of traditional retail, which is expected to report a less impressive 4 percent growth rate this year.

“It’s clear that e-commerce continues to gain market share from traditional retail due to the attractiveness of the Internet’s convenience and lower prices,” said comScore Chairman Gian Fulgoni. “Consumers were especially attracted to the deals and discounts available through digital channels -– particularly free shipping, which occurred on well over half of transactions this season.”

The most impressive finding of the season was that 10 individual days surpassed $1 billion in spending, compared to only one day in 2010.

Here is a list of the 10 biggest online shopping days in 2011, led by Cyber Monday:

(Image credit: iStockphoto.com/mbortolino)

Daily deal industry tracking firm Yipit reports that the daily deal industry in North America experienced marginal growth in November, as the major sites were adversely affected by the Thanksgiving holiday.

The number of deals offered increased only 1 percent while total industry gross billings grew by 2 percent during the month.

The largest provider, Groupon, saw the biggest decline.

Groupon grew 6 percent in November, but experienced a double-digit decline during the Thanksgiving holiday week.

Yipit bases its estimates on the sales of vouchers, which it tracks closely. Although Groupon no longer reveals exact sales data on its site, Yipit maintains that it is still able to make fair predictions based on historical data and industry insights.

The daily-deal declines were in stark contrast to the Black Friday experience of online retailers, which saw sales increase to $816 million on the day after Thanksgiving. ComScore said it was the heaviest online spending day to date in 2011, representing a 26 percent increase over the same day in 2010.

The holiday declines occurred despite ambitious programs by both Groupon and LivingSocial, which tried to take advantage of the heavy retail season.

Groupon stepped up its marketing efforts through “Grouponicus,” a holiday shop selling local gifts, deals and travel getaways.

LivingSocial’s Black Friday efforts included offering deals for 20 national brands, including gift cards from Electronic Arts, OfficeMax, Verizon Wireless, Skype and BlueNile.com. LivingSocial even launched a national TV campaign and radio spots to promote the deals.

But Yipit says those efforts didn’t pay off.

For the seven-day period ended Nov. 28, LivingSocial’s gross billings were down 30 percent and 19 percent compared to the two previous periods. And, because of the lower-priced national deals, the average size of its deal price fell to $28 in November from $32 a month earlier.

Yipit did not try to explain why the drops occurred around the holidays, except that they are similar to other periods, such as the Fourth of July.

But the patterns could be compared to social gaming space, which saw its usage sink during the holidays because people were not at work.

A secondary factor may be that more traditional retailers are known for Black Friday offers for others, while daily deals have historically been looked at as items you buy for yourself, and are not necessarily thought of as gifts.

Finally, Yipit said following Groupon and LivingSocial, Travelzoo, AmazonLocal and Google Offers ranked as the third, fourth and fifth largest national providers in November.

No word yet on how daily deals performed in the lead-up to Christmas in December.

But that could be a problem.

The device sells for about the same amount ($199) as it costs to make (about $202).

Amazon’s stock fell as much as 4 percent this morning after Goldman Sachs suggested that the Seattle-based company could miss analysts’ sales estimates for the current period.

The stock has recovered some since early this morning, and is now trading down 1.6 percent, or $2.74, at $171.15.

According to Bloomberg, Goldman analyst Heather Bellini said in a note today that Amazon’s sales may grow 38 percent from a year earlier, to $17.9 billion, which is less than analysts’ average estimate of $18.2 billion.

Bellini based her analysis on a comScore report that found online shopping increased 15 percent this year, compared to last year’s holiday season. Since Amazon is the largest e-commerce provider, she reasons that it would be difficult to outperform the average by a wide margin.

“While the comScore numbers are just one data point which does not capture international sales or breakout individual companies’ sales, taken alone they seem to suggest the potential for downside risk to consensus forecasts,” Bellini wrote.

Ultimately, strong sales of the Kindle Fire could help Amazon hit its sales estimates, since it is counting on the device to serve as a platform for the sale of more content. But in the short term, the Fire could hurt the company’s bottom line, a possibility Bellini did not address in her report.

In addition to comScore’s numbers not capturing international sales, its report also does not capture sales from mobile devices. Amazon said the Kindle Fire was the best-selling product on Amazon’s mobile Web site and across all of its mobile applications.

In all, Amazon said it sold more than one million Kindles a week in December.

Bellini reiterated a “neutral” rating and a price target of $190.

Apple’s App Store is on pace to exceed 10 billion downloads this year alone, which is twice the number it recorded over the three previous years combined.

The Android Market is also setting records. Over the past seven months, it has achieved more than 7 billion downloads, which more than triples its life-to-date downloads of 3 billion reached in May 2011.

At those rates, both operating systems are generating roughly one billion downloads a month, or the equivalent of 33 million a day.

The data was reported by Flurry Analytics, which creates tools that thousands of developers use to track usage of their mobile applications.

Christmas Day was one of the big catalysts for achieving huge end-of-the-year records.

Flurry found that application downloads more than doubled on Christmas compared to the average number of downloads occurring during the first 20 days of December.

On Dec. 25, it registered 242 million app downloads, jumping more than 125 percent over an average day.

In addition, because of its insight into application usage, Flurry is also able to see the number of new devices activated. Phones and tablets are always a hot Christmas item and this year was no exception.

On the average day in December, 1.5 million phones were activated, but on Christmas, 6.8 million were activated, representing a 353 percent spike. Last year, Christmas held the previous single-day record with 2.8 million device activations.

Either way, consumers barely waited until Santa got back to the North Pole before hitting up the stores again.

ComScore reports that e-commerce spending for the first 48 days of the holiday season — ended Dec. 19 — reached $32 billion, jumping 15 percent over last year. In one week alone, at least four individual days surpassed the $1 billion mark.

And IBM, which analyzes mobile shopping trends using data from 500 retailers nationwide, said shoppers continued pulling out their credit cards on Christmas Day, as they shopped for themselves after shopping for others.

IBM found that on Dec. 25, online sales grew by 16.4 percent over Christmas Day 2010. (IBM’s results do not include Amazon.com, the Internet’s largest e-tailer.)

Many of the online sessions on a retailer’s site were initiated from a mobile device, accounting for 18.3 percent of traffic, up from 8.4 percent last year. Mobile sales grew to 14.4 percent versus 5.3 percent on Christmas last year.

As stated in a report that came out earlier this week, most mobile shopping was conducted on iOS devices. The iPad led all mobile-device traffic at 7 percent, followed by iPhone at 6.4 percent and Android at 5 percent, according to IBM.

Many of the days surrounding the holidays have acquired quirky nicknames, such as Cyber Monday (the Monday after Thanksgiving), Black Friday (the day after Thanksgiving) and Green Monday (the second Monday of December).

Perhaps this Christmas will qualify as Sofa Sunday.

The term was first introduced to me by Joaquin Ruiz, the co-founder and CEO of Padopolis, which makes a catalog app for the iPad. He was hoping the Sunday after Thanksgiving would see a spike in traffic after everyone hit the mall on Black Friday and then curled up on the couch with their iPad the following Sunday to recover.

This year, Christmas Sunday’s shopping spike continued into Monday, also known as Boxing Day. IBM said that online sales were up 10 percent by midday on Monday, over Dec. 26 last year, and that mobile sales were up 13.8 percent.

(Image courtesy of iStockphoto | mattjeacock)

It’s too early to know for sure; there are two days left for last-minute packages to be delivered, wrapped and placed under the tree in time.

So, while it’s hard to say whether there will be any widespread panic come Sunday, there are some early indicators that the system is reaching capacity.

In perhaps the biggest demonstration of holiday stress, a FedEx delivery driver was caught on camera tossing a box containing a new computer monitor over a customer’s fence. The owner claims he or she was at home at the time, with the front door wide open. After nearly five million people watched the security footage on YouTube, FedEx responded by posting an apology on YouTube. (Only 193,000 people have watched that.)

Then there are the canceled orders at Best Buy, which ran out of heavily discounted merchandise and was forced to void some orders that consumers had placed last month. A few more reports have surfaced from other retailers, such as Sears, which was failing to keep up with orders that were placed online for in-store pickup.

But perhaps this sort of thing is to be expected when you see 15 percent year-over-year online growth in online shopping.

ComScore reports that e-commerce spending for the first 48 days of the holiday season has reached $32 billion, jumping 15 percent over last year. Last week alone, ComScores said, four individual days surpassed the $1 billion mark, to help set a weekly record of $6.3 billion.

On a positive note, retailers’ Web sites have been able to keep up with the demand. Compuware, which has been monitoring the Web and mobile performance of the top 50 retailers, reports that there have been no prolonged site crashes.

At this point, most online purchases won’t get to people in time for Christmas, although Amazon is offering some expedited shipping options for consumers in some markets as late as Saturday.

Besides stress on the retailers, one other choke point in the system has been delivery.

This week will be the busiest week of the year for UPS, which estimates that it will deliver more than 120 million packages worldwide. In particular, it was anticipating that today would be its busiest day, with more than 26 million packages shipped — which breaks down to about almost 300 a second.

UPS’s close competitor, FedEx, previously predicted that Dec. 12 would be the busiest day in its nearly 40-year history. The company was forecasted to ship more than 17 million orders that Monday, which was double its daily average volume.

That’s in spite of Zynga, the rising star of social gaming, garnering much of the media’s attention last week, when it raised $1 billion in its initial public offering.

In November, Nintendo’s portable handheld, the 3DS, had its biggest single month of sales, representing an increase of more than 215 percent over the previous month; it has now sold nearly 2.5 million units since launch.

The Wii had its biggest Black Friday ever, with more than 520,000 units sold — six years into the console’s life.

The Japanese company also set a software record. Super Mario 3D Land, which was released Nov. 11, is now the fastest-selling portable Super Mario title in U.S. history, and Mario Kart 7 was the fastest-selling Mario Kart game.

In an interview with AllThingsD at the company’s U.S. headquarters in Redmond, Wash., Nintendo’s North America President Reggie Fils-Aime explained what’s driving strong holiday U.S. sales this year, and what’s on the horizon for the maker of games and hardware.

He also left the door wide open for Nintendo to experiment with new business models, including free-to-play or subscription, although he questioned the long-term prospects of social gaming companies, like Zynga.

Here’s an abbreviated version of our chat:

AllThingsD: It seems videogame sales this holiday kicked off with a bang.

Reggie Fils-Aime: We had a strong Black Friday for both our Wii and 3DS business.

The time frame from mid-November until the end of the year is critically important to us, and is driven by a number of software and hardware initiatives.

For the 3DS, we launched Super Mario 3D Land in November. It had the fastest sell-through for a handheld Super Mario game. That gave us a lot of momentum going into Black Friday, and right after Black Friday, we launched Mario Kart 7, which ended up being the fastest-selling Mario Kart, as well.

Together, that propelled our 3DS business. We’ve sold through more 3DS’s in eight months time than the original DS sold in the first 12 months. Our handheld business has a lot of momentum right now.

But it took awhile to get there?

What’s interesting is that we had a very good launch. The first week sales [of the 3DS] were fantastic. The initial rush of sales was really strong. But what happened after that in the spring and early summer time frame is — that’s when sales slowed down a little bit.

It was driven by not having great first-party software, and we were late in bringing some of the online functionality to the 3DS, and that’s when sales began to fall.

That’s when we took drastic action to reduce the price, right after the launch of The Legend of Zelda: Ocarina of Time 3D. Our bet was to regain momentum and make the holidays strong. We are having a strong holiday.

A lot of retailers were concerned that we would see a Black Friday rush and then things would trail off after that. Is that what you are seeing?

We haven’t seen that. We have seen things accelerate as we’ve gotten closer to Christmas Day itself. We are anticipating this week, across all of our businesses, will be the strongest sell-through week of the year.

What about the Wii?

The Wii had a strong Black Friday, too, driven by strong retailer promotions. This was our sixth Black Friday, and it was the best Black Friday week we’ve seen to date, so we’ve had very positive results.

It’s driven by software, and in this case, a new Legend of Zelda: Skyward Sword. It’s a game that’s been recognized by the gaming press to be one of the best games of the year.

The momentum continues for our Wii business, and sales are right on objective.

How does it continue to break records six years in? That’s baffling.

It’s because, even today, the Wii provides a family experience that you can’t get anywhere else. I love the stories I hear of grandparents playing with parents and with the grandkids.

Those are experiences that you can’t get elsewhere. That’s why we continue to break records. Plus, this holiday is the first holiday that it’s available for $149 or below. It’s reaching a whole new demographic that’s wanted to buy in, but couldn’t do it before.

And for consumers, there’s over 1,000 games that have been published, so the breadth of the gaming experience is extremely wide. The Wii continues to be the fastest-selling home console ever in the history of the gaming industry in the U.S.

Does that change as we get closer to the next-generation console, the Wii U?

The market is going to continue to differentiate based on the types of experiences that consumers want. As an example, if I’m the head of a household of a family of four, and my disposable income is $50,000 to $60,000, I’m going to continue to look at the Wii because of the software, and it’s a great entertainment device. For consumers who want to have the latest gadgets and have a higher disposable income, that’s for the Wii U.

We haven’t announced pricing or availability or any other details, but given the current pricing of the Wii, it’s not going to be there.

We’ve been very clear, the market is going to decide how long these products will coexist side by side. Our goal is to launch the Wii U and drive it into the marketplace, but it will speak to a different consumer than the one that is buying the Wii today during the holidays.

What about the other consoles? Both Sony’s PlayStation and Microsoft’s Xbox are about the same age.

All of the competitors haven’t talked about what’s next for them, and given the investments they’ve made in their technologies, for them to move to new systems — at least on the same timing we want to move at — would probably be pretty challenging. But in terms of what they are going to do, when they are going to do it, you’ll have to talk to them.

What do you think of Microsoft’s move to make the Xbox the entertainment hub of the living room?

In the end, the consumer decides what equipment to have in the living room. The interesting thing we’ve found — because of the family entertainment we provide, and the inclusion of Netflix — the vast majority of Wiis are set up on the main TV in the living room.

Are you considering adding more content like live TV or movies?

If the consumer wants live TV, they can get it through the options they have today. We always ask the question, ‘What can we do that’s new and provocative?’ And we will continue to think of new and provocative experiences for the user.

I’ve spent the past week covering Zynga’s IPO. What’s your perspective on social gaming?

What’s the share price? It will be interesting when it breaks below $9 … I have a couple of thoughts on social gaming.

Consumers want to be entertained in a variety of ways, like watching TV or reading a book. The thing about entertainment — as consumers have a range of experiences — their desires for what’s new continues to be pushed out. So delivering the same experience all the time … consumers will move on.

So when I look at gaming experiences on social networks, there’s a variety of entertainment value. Some are strong, some are not. But in the end, how will they evolve? Doing the same thing over and over again is no longer fine.

Is that really fair when you have Mario Kart 7 coming out?

We continue to evolve the experience by providing a level of customization that’s new, or different ways to race with a sail and a propeller that allows you to drift under water. What we’ve done with Mario Kart 7, for some of the tracks, you can actually win when you go off the track, which never existed before. We’ve continued to make it more fun and add more enjoyment for the consumer.

You don’t see that innovation happening in social gaming?

The companies that will win in the social gaming space need to show an ability to provide the new and different experiences, and a way to monetize it. In the end, these are businesses that need to make money.

Is that your comment on the free-to-play model? Will you experiment with free-to-play?

I have two comments on that.

First, we make games for Nintendo devices, and that is a competitive advantage for us. You can only play Mario on a Nintendo device, so from that standpoint, I wouldn’t expect to see our franchises on other platforms, and I would argue Facebook is a platform.

My second point, on whether we will experiment with other forms of monetization?

Certainly.

How that comes about, or which ones we do first, that’s all experimentation that’s going on right now in our various studios.

With only 13 days until Christmas, today has historically ranked as one of the heaviest online shopping days of the year, thereby earning the nickname “Green Monday.”

This year it’s almost a guarantee that history will repeat itself.

Already, six individual days have surpassed the billion-dollar threshold this holiday season, according to comScore. That’s up from last year, when only one day eclipsed $1 billion in spending.

The term Green Monday was coined by eBay in 2007 to describe the second Monday of December because it tended to attract shoppers who wanted to make sure their presents would arrive in time. And, well, because the color of money is green.

This year, a number of online retailers are banking on it by offering a number of holiday specials.

But one of the biggest benefactors of all is FedEx, which must ship all the orders.

The commercial postal service is predicting that today will be the busiest day in its nearly 40-year history. The company is forecasting that it will ship more than 17 million orders today, double its daily average volume, and will exceed last year’s busiest day of 15.6 million shipments.

FedEx might be one of the first indicators to reveal how well the online shopping is fairing.

It says the increase is largely driven by residential shipments sent from online and catalog retailers. ComScore’s data would agree with that hypothesis. Already, the research firm says that online shopping is up roughly 15 percent from Nov. 1 to Dec. 9, compared to the same period in 2010.

ComScore Chairman Gian Fulgoni said, “We know that Green Monday will rank among the top online spending days of the season.”

But he added that it will likely not be the last hurrah of the year.

Other important days to come include the promotional day coined “Free Shipping Day,” which occurs on Dec. 16, and other days this week as we near the end of the year.

One retailer, however, was not in the holiday spirit.

Amazon-owned Zappos put out a press release today calling itself the Anti-Green Monday. It said shoppers don’t have to get caught up in the hype because it is guaranteeing that all orders made on Dec. 22 will receive next-day delivery for Dec. 23.

Now that’s the true definition of a procrastinator.

Here is comScore’s list of the 10 biggest shopping days of 2011:

The promotion goes live Saturday and will serve as a way for Amazon to increase usage of its bar-code-scanning application, while also collecting intelligence on prices in the stores.

This holiday season, mobile commerce is surging as more people become comfortable using applications on their phone to compare prices or simply shop when not at home or at work.

On the Monday after Thanksgiving, the biggest online shopping day of the year so far, mobile sales reached 6.6 percent, jumping from 2.3 percent in 2010, according to IBM’s online retail study.

Amazon is not the only company hoping for a strong mobile Christmas.

Last quarter, eBay started airing TV commercials – its first in the past few years — to promote its mobile applications. The company estimated that mobile commerce merchandise volume this year will hit $5 billion. Additionally, eBay’s PayPal unit is expected to exceed $3.5 billion in mobile revenue.

Amazon has never released figures on how well its mobile applications do.

While the information empowers consumers, it terrifies retailers, who increasingly are feeling like showrooms — shoppers come to to check out the merchandise but ultimately decide to walk out and buy online instead.

Amazon’s Price Check app, which is available for iPhone and Android, allows shoppers to scan a bar code, take a picture of an item or conduct a text search to find the lowest prices. Amazon is also asking consumers to submit the prices of items with the app, so Amazon knows if it is still offering the best prices.

“We scour online and in-store advertisements from other retailers, every day, year-round,” said Sam Hall, director of Amazon Mobile. “Now, we are enabling customers to use the Price Check app to share in-store prices while they search for the best deals.”

While Amazon’s applications and its $5 incentive can be viewed as friendly to consumers, physical retailers will see it only one way — as an attack.

The one-day promotion Dec. 10 will offer 5 percent, or up to $5, off on as many as three items.

So far, three days have eclipsed the $1 billion mark, representing three of the four heaviest days in U.S. history.

In all, shopping has already reached $18.7 billion for the month of November and first two days of December, representing a 15 percent increase over 2010, according to comScore.

The measurement firm had at least one explanation for the surge. It’s not because people were less naughty. Rather, it’s because of all the discounts being offered, with the prevailing method being free shipping.

Typically, the use of free shipping peaks around the Monday after Thanksgiving, comScore said, but this year, the incentive was used at record levels over an extended period of time.

Throughout the 2011 holiday season, more than half of all transactions have included free shipping, the research firm reports. In particular, during the week of Thanksgiving, the promotion was used the heaviest with nearly 65 percent of all shoppers not having to pay freight.

During the following week, which includes Cyber Monday, the percentage of free shipping stayed high at 63 percent.

Free shipping was not used as heavily during the online shopping season last year, peaking at only 55 percent the week of Thanksgiving.

The five most visited sites the day after Thanksgiving were Amazon, Wal-Mart, Best Buy, Target and Apple.

While retailers such as Amazon are known for offering free shipping if you meet a certain spending threshold, clearly others are jumping on the bandwagon. For instance, Apple is offering free shipping on all purchases from its Web site until Dec. 22.

Photo Credit: thisisbossi.

In a final tally, comScore reports that $1.25 billion was spent online yesterday in the U.S. This exceeds last year’s record of $1.028 billion by 22 percent.

There was evidence early on that Cyber Monday was on track to produce record sales, with research firms releasing updates almost hourly. Others, including IBM, confirmed the strong gains reported by comScore.

The comScore figures only include purchases made from devices connected to fixed Internet connections (i.e., computers); IBM’s analysis includes mobile shopping, using data from 500 retailers nationwide that use its systems.

IBM found that online sales were up an impressive 33 percent on Cyber Monday compared to 2010, with a large majority of shoppers using mobile devices.

Though the name Cyber Monday might lead one to expect the busiest online shopping day of the year, historically that particular Monday has failed to outdo other days closer to Christmas. In fact, there’s still plenty of time this year for additional billion-dollar-plus days to come, if consumers are indeed spending more and not just looking for steep discounts.

So far, the consumer trends suggest we are headed for a strong Christmas season.

Cyber Monday followed a busy Black Friday, with comScore reporting $1 billion in online sales, a 16 percent increase over last year’s day-after-Thanksgiving shopping phenomenon. Online sales for November have already reached $15 billion, a 15 percent increase over the first 28 days of the month last year.

Those numbers don’t include commerce conducted on mobile phones and tablets, which people are using to shop during their commute or from their living room couch. IBM found that 10.8 percent of people used a mobile device yesterday to visit a retailer’s site, up from 3.9 percent in 2010. Additionally, mobile sales grew dramatically, reaching 6.6 percent versus 2.3 percent in 2010.

Mobile sales in particular were driven by Apple products, namely the iPhone and iPad, which collectively accounted for 7.4 percent of all online retail traffic. The top three devices — iPhone, iPad and Android — accounted for 4.1 percent, 3.3 percent and 3.2 percent of all online retail traffic, respectively.

The eBay-owned PayPal also reported massive mobile sales growth on Cyber Monday, with global mobile payment volume jumping 552 percent compared to the same day last year.

(Image credit: ©iStockphoto.com/mbortolino)

The electronics manufacturer placed behind Target, Best Buy, Wal-Mart and Amazon, according to a comScore report that analyzed online shopping trends the day after Thanksgiving.

“Apple has not historically been in the top five — in fact, this is the first time I can remember,” said Andrew Lipsman, an analyst at comScore, who added that Apple was “nipping at Target’s heels,” registering only a few percentage points lower in overall traffic.

The strong ranking backs up a report today by 9to5Mac that said Apple’s Black Friday sales were “off the charts.” According to its sources, Apple blew away forecasts by 7 pm, and broke records for its biggest sales day ever.

ComScore’s figures include both Apple’s site as well as iTunes, so any resulting sales would encompass both hardware and digital products, such as apps and videos.

Separately, Experian Hitwise ranked Apple as the 12th most-visited retail site on Black Friday. It said the company’s total visits jumped 42 percent compared to 2010.

In both of these circumstances, what’s notable is Apple’s apparent mind share among consumers.

Best Buy, like some other retailers, is trying hard this season to be the go-to source for Apple products, running new TV ads promoting the chain as a place to buy Macs, iPads and iPhones. But Apple was able to rival gigantic big-box retailers, which carry thousands of products, including their own.

That’s impressive, especially since its discounts are generally not.

Lipsman agreed: “Even though Apple does not provide the selection of products that you might find at a big box retailer, it is obviously top of mind when it comes to the most in-demand products, like the iPhone and iPad. Two of the biggest growth sectors right now are tablets and digital content downloads, and obviously Apple is extremely well positioned on both fronts.”

Best Buy Co. is joining the list of big store chains opening at midnight after Thanksgiving this year in hopes of getting a jump on the competition, following recent announcements by Target Corp., Macy’s Inc. and Kohl’s Corp.

Best Buy Chief Executive Brian Dunn, said he felt forced to “make a very difficult decision” and open at midnight because rival retailers were doing so, though the decision was controversial inside the company.

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In June, the company said at E3 that the new device would be available before the end of the year.

Today, Bloomberg reports that the schedule has changed and that the product will now be introduced in Japan before the end of December, followed by launches in the U.S. and Europe early next year.

Kazuo Hirai, Chairman Howard Stringer’s top lieutenant, who talked to reporters in Tokyo today, also said the company has no plans to lower the price of the device.

The Vita, which represents a major update from the last PSP, will cost $249 for a Wi-Fi version, while the AT&T-connected 3G version will cost $299 (not including data plans). Two months ago, those prices seemed competitive, but since then, Nintendo has slashed the price of its struggling 3DS to $170, down from $250.

Both delays and a higher price point will make it difficult for Sony to compete against similar devices, as well as other multi-purpose consumer electronics, which are increasingly being used as game devices, such as phones, iPods and iPads.

The Vita is expected to stand out because of its brilliant 5-inch touchscreen, as well as other nice hardware features, such as front and rear touch pads and cameras that provide additional game control and augmented reality. Many of the games will also be stored in the cloud, so players can pick up on the PlayStation 3 where they left off on the Vita.

This Cyber Monday isn’t likely to be either the beginning or the biggest day for holiday shopping – but that’s likely all good news for online retail.

Early data from the extended holiday weekend show that few people were waiting until they returned to work to do their online shopping. Instead, they started right after eating Thanksgiving dinner.

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The inventory build-up of liquid crystal display televisions is the result of a surge in production by global TV makers this year following a period of reduced output in the aftermath of the financial crisis, when consumer spending plunged. The flood of new models has heaped additional pressure on TV prices, which routinely experience 20 to 30 percent price declines annually.

The build-up has filtered down the supply chain. The market for large-sized LCD panels, which was experiencing shortages several months ago, has now swung in the opposite direction, forcing panel makers to scale back output and slash prices to clear out inventory.

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This week, I’ve done the dirty work for you: I’ve amassed a collection of vital details about the three most popular systems—Microsoft’s (MSFT) Xbox 360, Sony’s (SNE) PlayStation 3 and Nintendo’s Wii—so that you can get a handle on what each offers and what it will cost you.

Nintendo Wii

Nintendo recently dropped the Wii’s price, for the first time, to $200 from $250. The Wii Console comes with a controller, an additional controller called a Nunchuk, and the Wii Sports game, which includes baseball, tennis, golf, bowling and boxing. It holds 512 megabytes of flash memory, but you can increase this by inserting SecureDigital memory cards. It also accepts high-capacity SD cards, or SDHCs, of up to 32 gigabytes.

The couch-potato world of videogamers was shaken up when the Wii, with its motion-sensitive remote control, was introduced about three years ago. Users can play Wii Golf, for instance, by swinging the remote like a golf club. In September, Nintendo added to its lineup a $20 remote-control accessory called Wii MotionPlus that was designed to add more precision to game motions. I tested this snap-on piece and found that it did make the Wii’s motions feel more realistic. But it works only with Wii MotionPlus games—and there are only six of them; 10 more are planned for 2010.

Wii encourages users to move around in more ways than just waving a remote: Its Wii Balance Board, which comes with the Wii Fit Plus game in a $100 bundle, works like a digital exercise step. It records the body’s weight shifts and movements for activities from yoga to wake-boarding.

The Wii accesses the Internet and lets users compete online against others. About 655 packaged games are available for between $30 and $50. Also, you can use pre-purchased Nintendo Points to buy and download about 150 WiiWare games and over 325 titles from the older Virtual Console library. Each game costs between 300 and 1,500 points, or between about $3 and $15.

WiiConnect24 can send messages from one Wii to another over the Internet, as long the two users exchange “Wii numbers.” Users can also surf the Web with Wii’s Opera browser. But beyond this, no other Web features—like downloadable movies, social-networking applications or streaming music—will work on this system.

Parental controls can be set on the Wii to restrict kids from using the Web browser, playing games that have a certain rating or communicating online.

Microsoft Xbox 360

Microsoft recently stepped up its game by adding features to its $200 Xbox 360 that make it well-rounded rather than strictly geared toward serious gamers. People who buy the Xbox LIVE Gold membership, for $50 a year, get applications for Facebook, Twitter, the Last.fm music-streaming service, online multiplayer game play, video chat, Netflix (Netflix subscription required), photo sharing via the Xbox, and movie or photo “parties” that allow users to watch a movie simultaneously with seven other friends.

Xbox LIVE Silver membership is free and includes basic features like voice and text chat, as well as access to the Zune video library’s 20,000 TV shows and movies to buy or rent. The Xbox also allows media-streaming over a home network. To wirelessly connect to the Internet on your Xbox, you’ll need to buy a $100 Wi-Fi adapter. By contrast, the Wii and PlayStation 3 have built-in Wi-Fi.

Anyone who owns a Microsoft Zune media player can buy a TV show or movie and download it to an Xbox or PC as well as the Zune. Zunes can be plugged into the Xbox to play music, as can Apple (AAPL) iPods.

The base Xbox comes with a wireless controller and 512 megabytes of memory. For $100 more, the Elite Holiday Bundle includes a 120-gigabyte hard drive, headset, wireless controller, and two games: “LEGO Batman: The Videogame” and “Pure.” More than 1,200 games are available for the Xbox, mostly costing between $29 and $60. About 350 of the games can be downloaded from the Xbox LIVE Arcade (costing 400 to 1,600 points, or $5 to $20) or the Games on Demand library.

Microsoft confirmed plans to introduce Project Natal, a system that lets people operate games with gestures and body movements rather than remote controls. Natal will work with all Xbox 360 consoles. Microsoft won’t confirm a date.

Family settings let parents control whether their kids play games online and with whom they play, as well as the ratings of the games. A Family Timer regulates how long kids play.

Sony PlayStation 3

Sony’s PlayStation, like the Xbox 360, is designed with serious gamers in mind. Its base version costs $300 and includes a 120-gigabyte hard drive and a DualShock 3 wireless controller; $50 more buys a version with a 250-gigabyte hard drive. Both systems can be upgraded with any standard 2.5-inch hard drive. The PlayStation is also a Blu-ray disc player.

Like the Xbox, the PlayStation 3, or PS3, now offers extra features, but these features are all included in the PlayStation Network, which is free (not $50 yearly like Xbox LIVE Gold). These PlayStation Network extras include Netflix (NFLX) instant streaming, a Web browser, photo slide shows, the ability to stream media over a home network to the PS3, a Facebook application that shares game information with friends and the PlayStation Network video-delivery service, where users can purchase 2,400 high- and standard-definition movies and 15,000 TV episodes.

The PS3 and the PlayStation Portable, Sony’s portable gaming device, are married in many ways. A new feature called Blu-ray Portable Copy lets users make a free standard-definition copy of some Blu-ray movies for transfer to a PlayStation Portable. Remote Play lets people stream media files from the PS3 to the PlayStation Portable in Wi-Fi hot spots or remotely turn the PS3 on or off using the PlayStation Portable. Movies and TV shows from the PlayStation Network can be transferred to either system, so you can start a movie on a big-screen TV and finish it on the PlayStation Portable; the same can be done for games.

About 400 games are available on Blu-ray for the PS3; these cost between $30 and $60. More than 150 titles, costing between $3 and $40, can be downloaded directly to the PS3. Sony confirmed that it will release a motion-sensing controller, but it hasn’t set a date.

Parental restrictions for the PS3 include the ability to restrict games, DVDs and Blu-ray discs with certain ratings. Parents can also limit monthly spending or Web browsing.

Games: A Cheat Sheet

Here are some of the key differences among three popular videogame systems.

Email: mossbergsolution@wsj.com

Write to Katherine Boehret at mossbergsolution@wsj.com

Corrections & Amplifications

Xbox LIVE Gold costs $50 a year. A previous version of this story incorrectly stated in the second reference to the price that it costs $50 monthly. Also, the Xbox 360 can be connected to the Internet via an ethernet cable for free, as well as via Wi-Fi. A previous version of this story incorrectly stated that connecting your Xbox to the Internet would require the purchase of a Wi-Fi adapter.

Here are the latest numbers from comScore (SCOR), which says that online holiday shopping is up a bit this year. That’s not saying a lot considering that last year’s sales were soft. But for the record, sales are up three percent so far, and Web sales were up 11 percent on Black Friday.

But note that consumers say they’re spending less overall than they did less year: They told interviewers they intend to spend eight percent less than in 2008.

Not surprisingly, people spent a whole lot of time on the Web’s most popular retail sites on Friday: Traffic at Amazon (AMZN), Wal-Mart (WMT), Apple (AAPL), Target (TGT) and Best Buy (BBY) sites were all up, comScore reports.

Next up: Dutiful reporting on “Cyber Monday,” tomorrow’s artificial construct. Still, I’m not complaining. This is way better than trudging out to the mall for the annual “interview of shoppers in a parking lot” piece that newspapers still insist on assigning.

“The continued economic turmoil, and in particular the troubling unemployment rate, is undoubtedly impacting industry sales,” said NPD analyst Anita Frazier. “Our latest Economy Tracker indicated that although consumers’ general opinion about the economy is improving, their outlook on their own personal situation is worsening. If consumers’ personal outlook continues to erode, they could very well be much more conservative with their holiday shopping this year.”

A somber warning for the videogame industry. Even recent price cuts on game consoles have done little to spur demand.

“Year to date, the hardware category has experienced the sharpest decline in the industry, with unit sales down 10 percent compared to the same time period last year,” Frazier wrote. “Recent price cuts helped spur a one- to two-month increase in unit sales, and this month’s Wii sales reflect that boost, but the other platforms have not sustained the sales momentum after price reduction.”

The videogame industry may be recession-resistant, but it is clearly not recession-proof, as some once believed. Sales data, below.

U.S. Hardware Sales, October 2009

1. Wii 506.9K
2. Nintendo DS 457.6K
3. PlayStation 3 320.6K
4. Xbox 360 249.7K
5. PSP 174.6K
6. PlayStation 2 117.8K

U.S. Top Ten Software Sales, October 2009

1. Uncharted 2: Among Thieves (PS3, Sony) 537,000
2. Wii Fit Plus (Wii, Nintendo) 441,000
3. Borderlands (360, Take 2) 418,000
4. Wii Sports Resort (Wii, Nintendo) 314,000
5. NBA 2K10 (360, Take 2) 311,000
6. Halo 3: ODST (360, Microsoft) 271,000
7. NBA 2K10 (PS3, Take 2) 213,000
8. Forza Motorsport 3 (360, Microsoft) 175,000
9. Kingdom Hearts 358/2 Days (DS, Square Enix) 169,000
10. FIFA Soccer 10 (360, Electronic Arts) 156,000

Which is saying something. Because as you might recall, in 1999, Nasdaq was soaring on the back of the dot-com bubble to levels never before seen.

And here we are amid the worst recession since the 1930s. Haven’t even entered that “all important holiday shopping season” yet, either.

Things are looking pretty good for Amazon (AMZN) right now. Sure, there’s renewed competition from retailers like Wal-Mart (WMT). There are potential sales tax issues and income tax liabilities and a raft of Kindle-killers headed to market. But Amazon’s stock is up 131 percent this year, brokerage firms are upgrading their ratings on the company, and analysts are saying it’s only going to go higher.

Said Citigroup analyst Mark Mahaney: “Near-term outlook very positive as AMZN heads into holiday season fully armed against shrinking/de-stocking offline retailers, with one of the must-have gadgets of the season (Kindle), a significantly strengthening International presence, and soon-to-be closed Zappos acquisition.”

Yeah. Things are looking pretty good right now. But we said that back in ’99 too–when Amazon had a similar P/E.

“In 2004, as you may recall, we launched a slim version of PlayStation 2, a defining moment for that console, helping us to really expand the user base of PlayStation 2 further,” Sony Computer Entertainment Chief Executive Kazuo Hirai said at the Gamescom videogame trade show in Cologne, Germany. “Today is that day for PlayStation 3.”

And so, starting Sept. 1, the PS3 will be available for $299. That’s still well above Microsoft’s (MSFT) Xbox 360, which retails for less than $200 and Nintendo’s Wii, which sells for $250, but it’s a hell of a lot better than $399. And analysts say it will almost certainly spur demand for the console. “People were expecting this to happen. [Sony] had to do something,” MKM Partners analyst Eric Handler told MarketWatch. “This will bring some new customers to the fold.”

Indeed. But how long can Sony sustain such market share gains, when Microsoft and Nintendo are almost certainly mulling price cuts for their platforms as well?