In November and December, the number of online transactions increased by 37 percent, and overall sales jumped by 25 percent. But the average ticket size declined by 9 percent, according to Chase Paymentech, which analyzes information across the top 50 e-commerce retailers.

As it turns out, more consumers are turning to e-commerce for more of their everyday spending, rather than reserving online purchases for big-ticket items.

Here are Chase’s three reasons for the decline:

• More consumers are purchasing digital media, which has a lower price point than most physical goods — MP3s cost less than CDs, e-books cost less than paperbacks, and apps cost less than game cartridges.
• Prices for popular electronics, such as tablets, e-readers and TVs, are falling.
• More retailers are offering free shipping, which eliminates the incentive to fill carts to reach a free-shipping threshold.

EBay, which is the first major e-commerce provider to report Q4 results, confirmed it was also seeing the trend. The company’s payments division, PayPal, reported smaller transactions during the fourth quarter across the merchants it serves.

John Donahoe, eBay’s CEO, explained in an interview that the biggest driver of that trend was eBay’s acquisition of Zong, a mobile payments provider that powers the sale of digital goods. In addition, Donahoe said retailers, including eBay, heavily discounted products in order to drive more purchases this holiday.

Amazon, which is the leading e-commerce provider, also said that it is selling a lot of low-priced digital goods, ranging from e-books to MP3s.

Historically, the company has said that Christmas is the largest day of digital sales on Amazon.com, followed by Dec. 26. In 2010, from Christmas Eve through Dec. 30, Amazon customers purchased three times more digital content — including Kindle books, magazines, movies, TV shows, music and digital games — compared to the weekly average for the year.

Despite transactions declining overall, Chase identified two exceptions: Apparel and footwear rose 6 percent; toys rose 10 percent year over year.

(Amazon photo courtesy of thisisbossi)

The results beat both the company’s own revenue forecast of $3.35 billion and analysts’ estimates of $3.32 billion.

In after-hours trading, the company’s stock was up 66 cents, or 2.2 percent, to trade at $31 a share.

The rebound is perhaps a relief since the company’s stock had been trading somewhat lower since it announced earlier this month that Scott Thompson, the president of PayPal, was leaving the company to become the CEO of Yahoo.

The company’s earnings also exceeded expectations. Its non-GAAP earnings of 60 cents a share, which excludes some non-cash items, beat analysts’ expectations of 57 cents a share. Internally, the company had forecast non-GAAP earnings between 55 and 58 cents a share.

On a GAAP basis, the company reported $2 billion, or $1.51 a share, in the fourth quarter, bolstered by a gain on the sale of the company’s investment in Skype.

Retailers during the holiday quarter can often report mixed results, depending on consumer demand during the business shopping season. EBay’s results are perhaps a good signal for the overall market since it is one of the first e-commerce providers to report year-end results.

Amazon, the e-commerce leader, will report Q4 results on Jan. 31.

For the full-year, eBay said revenue increased 27 percent to $11.7 billion and net income totaled $3.2 billion, up 79 percent over the prior year.

PayPal, one of eBay’s fastest-growing businesses, also reported a strong quarter.

The payments division said revenues in Q4 totaled $1.2 billion, up 28 percent from the year-ago period. A lot of that was driven by new accounts and the adoption of mobile payments.

As previously announced, the company said its mobile payment volume reached $4 billion in 2011, more than five times the mobile payment volume in the prior year. It also said that it added one million new accounts on average each month of the year.

EBay said its forecast for the first quarter will not be as robust, which typically happens as spending levels go back to normal. It expects revenues of up to $3.15 billion, with non-GAAP earnings per share of up to 51 cents a share.

According to Experian Hitwise, the top search query the week before Christmas that included some variation of the term “gift card” was for “kindle gift card.” Apple’s iTunes gift card was not even close, ranking as the eighth most searched-for term. In between were several more generic combinations, including American Express or Visa, or terms like “cheap gift cards.”

This holiday season, spending on gift cards was expected to hit $27.8 billion, a four-year high, according to a survey conducted by the National Retail Federation.

The plastic versions of cash were the most requested items on people’s wish lists for the fifth year in a row. What was unusual was the increased number of shoppers who were willing to give them, shedding concerns about looking impersonal or lazy.

The average shopper was expected to spend $155.43 on gift cards, the highest amount since 2007.

Experian theorized that the Kindle gift card, in particular, was searched for so heavily because it made a practical companion gift to the record number of e-readers being purchased. It also said that the increase in gift card purchases drove higher traffic to retailers’ Web sites on Christmas Day, with visits up 31 percent year over year.

But what if you got a gift card you don’t want, or one for a restaurant or theater that doesn’t exist in your hometown?

There’s a secondary market for that.

Companies such as PlasticJungle.com, GiftCardRescue.com and CardPool.com will give you up to 90 percent of the voucher’s value — depending on the demand for the card. Likewise, you can also purchase gift cards for below face value on these sites.

Even better, if you didn’t get a Kindle gift card but wanted one, PlasticJungle and GiftCardRescue both have partnerships with Amazon that will give you an extra 5 percent on the value of the unwanted card if you swap it for an Amazon gift card instead of cash.

Whatever you do, experts suggest you don’t put the cards in a drawer and forget about them. The best deals are being offered now, so spend them.

The list is based on my own taste, and in no particular order, so feel free to share the ones that made you snicker the most.

Admittedly, they are much more bearable to watch now that the holidays are over and they no longer serve as a reminder for all of the things you have left to do.

So, sit back and enjoy!

Wal-Mart makes fun of the ugly Christmas sweater:

Target gets you into shape for fighting the crowds in its Black Friday commercial:

Apple, which was one of the biggest retail winners this holiday, demonstrated how Santa would use Siri:

EBay showed how its mobile application could avoid awkward gifting:

Best Buy fueled people’s competitive spirit in a game of Mom versus Santa:

And, finally, Amazon says it’s better to receive than give:

Take Reiss Innovations, for example.

Six years ago, owner Ken Reiss was selling five to 10 mouse pads a year through Amazon. Flash forward to 2011, Reiss increased the number of products he sells by 50 percent compared to last year and expanded into Canada.

In many ways, Amazon is a giant built on the backs of millions of individuals.

Or at least that’s the message the Amazon wants you to hear this morning.

Along with a laundry list of holiday announcements, it said its third-party sellers reported record growth this Christmas season. This year, nearly 40 percent of products purchased by Amazon customers were sold by more than two million independent sellers of all sizes.

But it’s hard to read the story of Reiss Innovations and others in the press release and not think “damage control.”

Earlier this month, Amazon faced a flurry of criticism after launching a promotion that would give consumers $5 off if they compared prices using Amazon’s mobile phone application in the store.

The one-day promotion served as a way for Amazon to increase usage of its Price Check application, while also collecting intelligence on prices in the stores. Consumers received the discount if they bought the item using their phone.

Small and large retailers, which worried that their stores would only become showrooms, called the move anti-competitive. Meanwhile, consumers pledged to buy locally and created Facebook pages in opposition and petitions asking Amazon to end the one-day promotion. In addition, eBay offered consumers $10 to walk back into the stores.

In this morning’s press release, Amazon also mentioned Scharf Industries, an office and electronics provider, that reported a sales increase of more than 500 percent this holiday season compared to last year.

Other third-party successes Amazon pointed to:

• Sellers sold enough cameras for every fan at the next 10 Super Bowls.
• Sellers sold enough toys to give one to every resident of Chicago.

It did not mention third-party sellers in last year’s press release, but it did mention how many times its Price Check application was used — a fact that was surreptitiously left out of this year.

To be sure, Amazon’s services give these retailers access to millions of consumers they may not ordinarily reach. But these retailers pay dearly for the opportunity.

Prices vary widely based on the services being provided and the product being sold, but as an example, a $10 book would glean a proceed of $6.42. Meanwhile, a $200 camera would garner $182.37. In these scenarios, Amazon is also offering fulfillment services, which means it will store, pack and ship orders from its warehouses as soon as an item is purchased online. That results in an additional fee, of course.

If Amazon’s promotion did motivate people to shop locally instead of buying online, it’s really not obvious.

ComScore reports that online shopping this holiday season was up 15 percent compared to a year ago and Wall Street analysts are expecting Amazon’s fourth-quarter revenues to be up at least 38 percent year over year.

That’s quite a spike — 15 percent more than they spent last year — and a new record. The week ending December 25 alone saw $2.8 billion in spending, an increase of 16 percent over the year prior.

Even more interesting was the increase in purchases made online on Christmas Day.

On an average day during the 2011 holiday consumer binge, digital content purchases accounted for about 2.8 percent of retail e-commerce sales. On Christmas Day they accounted for more than 20 percent. Evidently, lots of folks spent Christmas morning loading up their smartphones, tablets and e-readers. And they’ll continue to do so for much of this week.

Says comScore, “Consistent with past years, [we expect] sales for this category of products to remain elevated throughout the entire week following Christmas Day.”

The world’s largest electronics chain by revenue stepped up its discounts on Black Friday and offered free online shipping this holiday season in a bid to counter online rival Amazon.com Inc.

But it was apparently unprepared for the crush of customers that followed, which executives said was greater than anticipated as the Richfield, Minn., retailer reported its first sales increase in six quarters earlier this month at stores and websites open at least 14 months.

Read the rest of this post on the original site »

If you haven’t made your contributions to spurring the U.S. economy yet, here are 10 apps that can help you get your last-minute shopping done in record time:

Price Check by Amazon: Meant to be used in stores, Amazon’s Price Check app goes beyond just bar-code scanning. It enables users to compare prices on Amazon, using voice, text or by snapping a picture of an item in a store. The free app is available for iOS and Android devices. Its picture-matching feature doesn’t always bring up an exact match, and the fact that all points lead back to Amazon may make you wonder why you even left your couch. But with Amazon being a low-price leader with quick-shipping options, you probably won’t want to shop without it.

Google Shopper: Like Amazon’s Price Check, Google Shopper allows users to search for items using pictures, text, voice and bar-code scanning. But instead of directing shoppers to only one online source, it brings up millions of search results from across the Web. The latest version of the app includes the option to subscribe to Google Offers, Google’s answer to the daily deals offered by Web companies like Groupon and LivingSocial. So the latest update of Google Shopper should provide more local search results than previous versions of the app did, a common complaint from some users. The app is free in the iTunes App Store and, naturally, in the Google Android marketplace.

EBay’s Half.com: Limited to media purchases like books, movies, CDs, videogames and game consoles, eBay’s Half.com app offers items at fixed prices, based on a UPC; sellers are required to ship any item within a few days of sale. The app uses Speedy Checkout, rather than PayPal, for purchasing. Regular eBay users have griped about the inability to see more information about the seller, condition of the product or competitive prices, so if you’re looking for more than just a quick buy, or have a quirkier gift in mind, you might want to check out eBay’s standard app. This one is available for free on iPhone and Android phones.

RedLaser: Also owned by eBay, RedLaser is a popular, free, bar code and QR code scanning app that works on iOS, Android and Windows 7 phones. It’s been around for a couple of years now, but it has two new features that may be worth checking out: iOS app users that are also American Express cardholders can use AmEx rewards points to buy things in the shopAmex store, as we reported recently. And users can now search for price point and product information by scanning pictures from their phone’s camera roll.

Shopkick: Unlike apps that offer immediate comparative pricing on the Web — which have increasingly put pressure on brick-and-mortar retailers — Shopkick emphasizes local shopping, and turns it into a kind of game. The app offers “kicks,” or rewards, for stepping into stores like Target, Macy’s, Best Buy and others. Shopkick points can then be converted into store vouchers, iTunes gift cards and movie tickets. Additional points may be earned by scanning items in stores, even if you have no intention of buying them right away. The free app, which launched in 2010, is available on the iPhone and Android platforms.

Goodzer: Another app for local shopping, Goodzer culls results from more than half a million stores — and not just small shops, but national retailers like Wal-Mart, Sears, T.J. Maxx, Bloomingdale’s and Sephora. The latest version of Goodzer claims to work all over the U.S., even in tiny towns, and offers the ability to save product listings for later viewing and comparison. Available for iPhone only — version 4.0 or later — Goodzer offers fast results for in-store buying, as well as some online options.

Consumer Reports Mobile Shopper: Many apps allow users to scan more bar codes than a grocery store checkout clerk. But what if you’re also looking for product ratings from a trusted source? Enter the Consumer Reports Mobile Shopper app, available for both iPhone and Android OS. Earlier versions of the $4.99 app were buggy, but Consumer Reports says its recent update improves performance and the user interface.

WalkSafe: Ever hear the song “Grandma Got Run Over by a Reindeer”? She was actually walking home from Best Buy, not our house, according to people familiar with the situation. Too bad Grandma wasn’t using WalkSafe, an app created by researchers from Italy’s University of Bologna and the Smartphone Sensing Group at Dartmouth. The app uses the smartphone’s sensors to keep an eye out for oncoming traffic, so you can browse your phone and comparative shop to your heart’s content. WalkSafe is free in the Google Android market; note that it’s currently not available for iOS devices.

NORAD Tracks Santa: This doesn’t have anything to do with shopping. Consider it a bonus holiday app.

You see, back in the days when people trudged to school in three feet of snow — uphill, both ways — they didn’t have search engines like Google and Bing to answer every question. Now, with the click of a mouse, kids can run searches to find out whether Santa Claus, the Tooth Fairy and Kim Jong Il are real.

For the more dubious members of your household, you can point them to a number of Santa-related apps. One of our favorites is from NORAD, the U.S.-Canadian military organization in charge of aerospace and maritime defense, which offers a free iPhone/Android app to help users “track” Santa Claus’s activity.

Parents can also download a free app called Postcards from Santa in both the Apple App Store and the Android market, and send personalized postcards from the big guy for $1.99.

You’re welcome.

(Image credit: iStockphoto | mattjeacock)

That’s Target’s motto this holiday season, as it promises on-time Christmas deliveries for online orders placed by Tuesday.

But some retailers are being a little more jolly.

In today’s fast-paced digital world, procrastinators are being rewarded, and will be able to shop online as late as Thursday and still get presents safely underneath the tree in time for Christmas.

For example, Wal-Mart will rush packages to your door for orders placed as late as Wednesday; Amazon is offering regular free two-day shipping as late as Wednesday; Zappos is offering free shipping for orders made by 1 pm PT on Thursday; and Toys “R” Us will go as late as noon on Thursday for express shipping.

There are exceptions, of course, and Amazon is a big one.

For orders placed on Thursday, one-day shipping will cost shoppers $3.99 an item; for items ordered on Friday, only Amazon Prime members will be able to pay $9.99 an item for on-time delivery; those in 11 U.S. cities can wait until Saturday, at which point it will cost $3.99 per item to ship by local express.

Amazon Prime is the e-commerce company’s membership service; it charges $79 a year for free two-day shipping and other perks, like free streaming videos.

One of the biggest limitations for the holiday is the logistics of getting a package from a distribution center to someone’s home. For example, FedEx won’t be running on Christmas, but will be running partial operations on Christmas Eve, a Saturday.

At this late point in the year, physical retailers shine.

For example, Apple’s shipping cutoff date is on Wednesday, but it will allow customers to order online and pick up in the store until 11 pm on Friday. On Christmas Eve, many of its stores will be open until 6 pm. Toys “R” Us and Best Buy are also offering free in-store pickup, adding late hours to accommodate the busiest of people. Best Buy will be open until 3 pm local time on Dec. 24, and Toys “R” Us will will stay open for 112 hours straight, starting at 6 am Tuesday, Dec. 20 and closing at 10 pm on Saturday night.

Online retailers can’t compete with store hours but, conversely, stores have had a hard time competing with the deals online, especially earlier in the season.

This holiday period, Amazon prompted consumers to consider the moral dilemma of shopping in stores versus online, when it kicked off a Dec. 10 promotion that offered $5 off to consumers as an inducement to walk out of stores empty-handed. EBay fired back with its own promotion, which gave online shoppers a $10 coupon to return to stores.

To be sure, online retailers will have something to celebrate on Sunday.

ComScore, which is tracking online spending habits this holiday season, said $30.9 billion had been spent online during a 46-day shopping window that ended Dec. 16, marking a 15 percent increase over last year.

Spending last Friday — dubbed Free Shipping Friday — hit $1.07 billion; it was the fourth day to surpass the billion-dollar mark this year. Still, Cyber Monday — the Monday following Thanksgiving — appears to rank as the heaviest online spending day of the year for the second consecutive season.

The financial services company is forging an official partnership with eBay-acquired RedLaser to offer consumers on-the-fly comparison shopping options, and to boost buying through its online rewards store, shopAmex.

RedLaser is a leading mobile bar code application, with an estimated 15 million downloads across all mobile operating systems.

All AmEx cardholders with membership rewards — whether Green, Platinum or Centurion Black Cards — that download the free app to their smartphones will be able to scan item bar codes, find out how many AmEx rewards points they’ve accumulated and potentially purchase the same item at a discount on shopAmex, a catalog of five million products from approximately 60 online retailers like Target, Saks and Apple. About four million of the listed products will be available to cardholders that use the RedLaser bar code scanner.

For American Express, the RedLaser deal is part of a growing push toward serving customers through mobile. The company’s most recent earnings report shows that AmEx has 95.8 million cards in force, including consumer, corporate and small-business cards; and according to the company, an estimated two-thirds of cardholders with membership rewards use a mobile or tablet device.

“In everything we do right now in terms of mobile and tablet, we’re trying to figure out ways to deliver value to our customers, because this is where it is right now: They’re using their phones to shop,” said Dustin Harris, director of interactive development at American Express.

For retailers — and consumers — it goes to show that it’s a brave new comparative world out there, with more shoppers having access to potentially better price points right in the palms of their hands, via smartphones. As my colleague Tricia Duryee reported recently, mobile shopping shot up during this year’s Cyber Monday record-setting sales, and mobile is expected to spur even more buying as smartphone adoption increases.

The RedLaser app for AmEx membership rewards will work only on the iPhone to start, though the company expects an optimized iPad app to become available soon.

Update: A previous version of this article suggested AmEx users could use the RedLaser bar code scanner to cash in on membership rewards and buy an Apple iPad. Cardholders will not be able to scan a bar code to buy an iPad through shopAmex.

According to a new survey from Parks Associates, an international market research firm, age will be the biggest factor in tech purchases made between Nov. 1 and Jan. 1. Young adult consumers — defined as those between 18 and 34 years of age — are more likely than others to purchase laptops, smartphones, tablets and LCD flat-panel displays this season. Also, households with children are much more likely to purchase laptops and LCD flat-panels.

Image courtesy of David Boyle/Flickr

Not surprisingly, tablets are the product of choice for big spenders, with higher-income households more likely to buy iPads and Android tablets. Some other interesting notes from the survey: Apple’s ecosystem of music, media and apps continues to drive interest in hardware, with 17 percent of consumers surveyed saying they’re looking to buy Mac laptops, trailing only Dell at 22 percent of intended purchases.

And in the smartphone category, there’s more bad news for BlackBerry: 83 percent of current iPhone users intend to buy an iPhone again this holiday season; 81 percent of Android OS users said the same, but only 41 percent percent of BlackBerry users intend to buy RIM’s iconic handheld device again this season.

The data, which comes from a survey of 2,000 U.S. heads of household and factors in purchases to date this year, as well as buying intentions, offers a somewhat optimistic outlook for consumer electronics this holiday season, with purchase intentions rebounding to near-2009 levels after a steep decline in 2010. Almost 50 percent of U.S. broadband-connected households intend to purchase a CE product from early November to Jan. 1, compared to 38 percent last year.

The fact that consumers began shopping earlier than usual this year may be giving retailers a longer window to move products, researchers note. Consumers also indicated that mobile shopping and mobile wallet options are increasingly appealing.

But it’s not all good news in gadgetland, as the economy continues to weigh on consumer confidence. Other data suggests that 2011 may still be a weaker than expected year for consumer electronics spending. Research firm IHS iSuppli recently reduced its consumer electronics growth outlook for the year, cutting expected revenue to $357.3 billion, a 1.5 percent rise from revenues in 2010, compared to its previous forecast of 6.4 percent growth for the year.

Parks Associates’ director of research John Barrett calls the slight boost in spending intentions this season the “keeping-it-home” phenomenon, noting that the people surveyed were more likely to make purchases for themselves this year, or for someone in their own household, rather than for gift-giving outside of the home. “The number of people buying something has gone up, but so have all the economic worries,” Barrett notes.

Readers, have you bought, or do you intend to buy, consumer electronics this holiday season?

Amazon’s promotion will give shoppers up to $5 off on most purchases made using its price-check application. The event serves as a way for Amazon to increase usage of its bar-code-scanning application, while also collecting intelligence on pricing in the stores.

Large and small retailers alike often consider Amazon one of their toughest competitors, but this time around they say the company’s initiative is a direct attack.

“It’s wrong to try something in the store and then buy it online,” said Lesley Tweedie, who owns a bike shop with her husband in Chicago and is hoping that the mantra “buy it where you try it” takes off.

Tweedie is also the founder of Little Independent, a six-month-old marketplace where local stores can feature products online.

“I don’t know what their [Amazon's] motivations are. I would like to believe it’s about business and it’s not about deliberately trying to hurt a retailer,” she said. “But this affects our little bike shop in Chicago, Target, Wal-Mart or Nordstrom. It affects them all.”

The promotion brings into question a shopper’s moral compass just in time for the holidays.

Does price or convenience win? Or, is it more important to shop locally to support jobs and nearby businesses?

From the consumer’s perspective, it’s hard to walk away from Amazon’s offer. The application compares prices, gives product reviews and, on Saturday, will also offer a discount to those who use it to make a purchase online.

Still, it seems consumers are becoming increasingly aware of the online-versus-local debate.

EBay recently conducted an online survey on the subject, and based on more than 1,000 responses, found that nearly 50 percent of shoppers plan to allocate up to half of their holiday budget to buying local this season. EBay says it tries to be an advocate for local stores. Its bar-code scanning app, Red Laser, not only shows people the cheapest price online, but also provides a list of stores where the item can be purchased locally.

Yesterday, the Retail Industry Leaders Association made a much less emotional argument.

Jason Brewer, the association’s VP of communications and advocacy, said Amazon is anticompetitive because it does not collect sales tax in most states, so it will nearly always have a price advantage over a physical store.

“Our retailers aren’t afraid to compete on price — that’s a part of retailing,” he said. “If the price check app replaces the Sunday newspaper circular, that’s fine. But what retailers can’t do is not collect sales tax.”

Tweedie says the one silver lining of Amazon’s promotion is that it is bringing the conversation out into the open.

She frequently catches people pulling out their phone in her store and often even hears them wonder out loud if they find it for less on Amazon. “It’s hard as a retailer without alienating the shopper. But they’ve never thought about it, and they aren’t trying to be rude. … What I think is so exciting is how many people are talking about this.”

Amazon will offer the discount on up to three qualifying products in eligible categories, including electronics, toys, music, sporting goods and DVDs, and is anticipating that Saturday will be one of the biggest days of the year for the application.

The Los Angeles-based company is aiming to become the eHarmony of e-commerce, meaning that it is trying to help e-commerce providers match the right shopping experience to the right shopper, in real time.

The reason SteelHouse is optimistic is that its president and CEO, Mark Douglas, was the VP of technology at eHarmony for almost four years.

Investors in the latest round include Greycroft Partners, Rincon Venture Partners and Lighthouse Venture Group. The company’s original investors are Baroda Ventures and Silicon Valley angel Ron Conway. The company had previously raised $1.55 million in a first round.

SteelHouse is building a behavioral platform that allows e-commerce companies to present different offers to shoppers, based on the personality and behavior of the person visiting. Some of its clients include Comedy Central, Mrs. Fields, SkyMall, eCampus.com, Evite and Cooking.com.

The company says it will use the capital to continue investing in its technology.

The application, called Shopycat, makes product recommendations based on the items people have liked or talked about in their news feed.

It is not particularly flashy. The logo is a picture of a cat sticking its head out of a shopping bag. The tagline reads “the right gift every time.” But the app’s rudimentary design fits nicely with the experimental nature of social commerce. Retailers are just starting to figure out ways to leverage social networks. Wal-Mart is no exception.

Wal-Mart promises that while it looks simple, the technology running behind the scenes is more complex than you might imagine.

The product was built by @WalmartLabs, which was created after Wal-Mart acquired Kosmix, a Bay Area start-up that was tracking social networks to determine people’s interests.

Venky Harinarayan, founder of Kosmix and co-founder of @WalmartLabs, said developing the application was surprisingly difficult. First, they had to find the relevant information on a person’s Facebook page. Then, they had to find products that best matched those interests.

For example, if someone likes Lady Gaga, the most obvious product to recommend is her albums. But a fan would likely already own those. A better gift is something more special — a collector’s item or a limited edition. That’s a more complex problem.

Since gifting is a practice humans naturally struggle with, maybe algorithms can do a better job.

After using Shopycat, Harinarayan learned his wife was a fan of “Game of Thrones,” the TV series on HBO. She has posted several times on Facebook about the show, but he hadn’t noticed. “Facebook is so transient and things flow by. Here’s a way to aggregate it all and put it in one place,” he said.

The technology also sometimes fails. When Harinarayan viewed gift ideas for me, it recommended a number of Sony products. Months earlier, I liked Sony’s fan page in order to gather information for a story — not because of any deep admiration I had for the company’s products. An algorithm would have a hard time knowing that.

“I think it’s a good first pass,” Harinarayan admits. “But there’s areas we should get better at. Right now, it is our goal to give one good gift idea per person. If we do that, then we are successful.”

The application is available to Wal-Mart’s 10 million fans on Facebook if they give permission to install it.

Harinarayan said Shopycat is the mega-retailer’s first foray into using social and promises that more is coming soon, including social experiences in the store and on its Web site.

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)

For the first time ever, so-called Cyber Monday registered as the biggest online shopping day of the year despite years of procrastinators lifting other days higher as they waited until a few days before Christmas to do their online shopping.

The theory had always been that consumers who flocked to stores on Black Friday would return to their desks on Monday to continue buying deals online.

Last year, the plan panned out and more than $1 billion-worth in items were added to virtual shopping carts across the U.S. to make it the heaviest online shopping day of the year — and the first time ever that a single day eclipsed the billion-dollar mark.

Now, with November already off to a strong start with a 15 percent increase in sales compared to the same period last year, another strong Monday could be in the works, according to comScore, which tracks online holiday spending. The research firm tracks shopping from fixed Internet connections, meaning it doesn’t count items purchased on phones or tablets.

Black Friday — the day after Thanksgiving — alone saw online sales of $816 million, making it the heaviest online spending day to date in 2011 and representing a 26 percent increase over the same day in 2010, comScore reported.

ComScore Chairman Gian Fulgoni said, “We now turn our attention to Cyber Monday, a day that Shop.org says will see eight in ten retailers running special online promotions. Last year, Cyber Monday was the heaviest day of online spending ever, with sales exceeding $1 billion, and we fully expect to see another record set this year.”

Cyber Monday may finally be living up to its name.

Amazon is a prime example of a retailer working hard to pry open wallets today.

Last year, the largest e-commerce company said Cyber Monday was Amazon’s peak day with more than 13.7 million items ordered worldwide, setting a record for 158 items sold per second.

Today, it will be important to achieve that pace again.

On Sunday, it bought full-color circulars in newspapers around the country promoting its lineup of discounts in its special Cyber Monday store.

On the front page, it touted its full lineup of Kindle e-readers, and a couple of pages were also dedicated to sales supposedly so steep you had to go online to see the prices for electronics, cellphones and videogames.

The Cyber Monday store, however, appeared a little unorganized with random “lightning deals,” which ranged from gift baskets to knife sets, board games, power tools and inexpensive jewelry — but nothing that seemed like the hit item of the season.

Other leading retailers, including Wal-Mart, Best Buy and Target, will also be expected to offer special deals.

Surely, the theory goes, if enough marketing dollars are spent, and the discounts are substantial enough, it might get consumers to turn out again to break another record.

In a blog post, comScore analyst Andrew Lipsman explained that last year’s shopping bonanza on Cyber Monday — which was first named that six years ago — was finally successful thanks to consumer awareness.

Over the past few years, it’s been steadily climbing.

In 2009, it was the second-biggest shopping day; in 2008, it ranked third. Before that, it wasn’t even close to the top. In 2006, it ranked 12th and in 2007, it ranked ninth.

“Today the majority of consumers know what it is and the attractive types of deals they can anticipate. With increased awareness comes increased participation on the part of both retailers and consumers,” he wrote.

So, now we have to wait to see if the deals — and the shoppers — both turn out, or if Cyber Monday turns out to be just another big sales day.

(Image credit: iStockphoto.com/mbortolino)

But the strategy might backfire. Not only are employees upset that they’ll have to staff the stores instead of being able to stay with their families, the move could cannibalize the retailers’ own online and mobile efforts.

Historically, shoppers have lined up in the early hours on the day after Thanksgiving — which has come to be known as Black Friday — to race into stores and be the first to scoop up discounts ahead of the holidays.

This year, stores are jumping the gun by opening a day earlier. Wal-Mart will open at 10 pm, two hours ahead of last year’s opening; Toys “R” Us will open at 9 pm, an hour earlier than last season; and Target will open for four hours when the clock strikes midnight.

On behalf of employees, Change.org has kicked off a petition, “Tell Target to Save Thanksgiving,” which argues that night openings rob hourly and salary workers of time off with their families.

But there may also be an economic reason to maintain standard practices.

Most of these retailers have major online presences and multiple mobile applications, including on the iPad. If they are open 24 hours a day online, must they actually open the doors, too?

After all, Amazon.com is never considered closed.

To get a sense of the strategy, we talked to someone who works on mobile and online strategy at one of the major retailers that is opening early. He told AllThingsD that he was worried about the impact opening early will have on mobile traffic, since traditionally their peak traffic hits between 3 am and 5 am, before stores open on Black Friday.

If customers have the option of visiting the stores in person earlier, it’s unclear whether that pattern will continue — and whether people will do some extra shopping while killing time standing in line waiting for the doors to open.

Even though mobile is still a small contributor compared to online traffic or store traffic, the retailer in question has scaled its infrastructure to accommodate this early-morning surge.

In general, the 2011 holiday season is expected to drive record sales online and from mobile devices.

Chase Paymentech, which analyzes information from the Top 50 e-commerce retailers, reports that online sales are up 25 percent compared to last year. A separate study by IBM predicts that traffic to retail sites from mobile devices is expected to more than double this month from the last holiday season, reaching 15 percent of all visits to retail sites. Last year, on “Cyber Monday,” mobile visits totaled only 3.9 percent.

But Andrew Lipsman, VP of industry analysis at comScore, said he did not believe the impact of opening early would be very significant.

“Thanksgiving Day and Black Friday are not huge online spending days,” he said. “So, even if sales are relatively soft, it should not have a significant impact on the full season for online retailers. At the end of the day, it will likely be a rounding error — if anything.”

ComScore’s data excludes sales made on tablets or mobile phones, but it estimates that those devices account for a minor amount of e-commerce spending — roughly 3 percent.

Here are the key online shopping dates in 2010:

Target Photo Credit: djLicious.

The capital represents the company’s first round, led by Comcast Ventures. Participants in the company’s seed round, totaling $1.3 million, also chipped in, including BlackBerry Partners Fund and El Dorado Ventures.

Padopolis’ co-founder and CEO, Joaquín Ruiz, said the latest version of the application will come out next week, right in time for the holidays.

Improvements include realistic page turns and the ability to mark up content. ”People wanted it to feel like paper while retaining the vivid imagery,” he said. “The little things add up to a lot.”

The new release is not only timed with Black Friday — which is the day after Thanksgiving and is counted as one of the busiest shopping days of the year — but also with something he’s calling “Sofa Sunday.”

“I know when people shop. I know when they are looking. … After you are exhausted with your Black Friday experience, you’ll relax and regroup on Sofa Sunday,” he said.

Padopolis is currently registering millions of page views on the weekends, when the average consumer spends 30 minutes flipping through catalogs. The amount of time increases the farther the users are from stores. If they are more than 100 miles outside of a major city, for example, he says the average kicks up to an hour and 20 minutes per session.

For women between the ages of 25 and 55, he calls it entertainment and relaxation.

“This is not a search, find and buy experience. It’s more about shopping, engaging and discovering,” he said.

Since raising the seed round earlier this year, the company has grown from seven retailers to more than 100, and from three employees to more than a dozen. It has also leased official offices in Los Altos, Calif.

One downside is that it’s also attracted fierce competitors, all angling for a piece of the $100 billion annual business in the U.S. Last year, roughly 20 billion catalogs were mailed, jumping from 18 billion two years ago, and now they are all betting those will go digital.

The biggest name to throw its hat in the ring is Google. It entered the arena in August, leveraging partnerships it had with retailers from its search engine to build an iPad app. TheFind, a six-year-old online shopping comparison site, launched the Catalogue app in May, and Coffee Table updated its app this week with more than 30 catalogs.

“I’m flattered that there’s three to four or five that are mimicking us,” Ruiz said. “It would be more daunting if we were the only ones out there. By this time next year, there will be at most three of us in the space and most likely only two because we’ll have had so much content and aggregation.”

The new funding will be used for growing the marketing and engineering teams at the company. Recently, the company added Claudia Carpenter, VP of user experience, who was a founder of Writely (which was acquired by Google), and Lee Bieber, VP of engineering and operations, who previously was at Rackspace, Intuit and Sun Microsystems.

A year later, Microsoft is hoping a large lineup of games — 75 in all – will fuel a repeat performance.

And, if more sports and dance games won’t work, then it’s also integrating the speech- and motion-controlled Kinect capabilities into all aspects of the Xbox to seal the deal.

“It’s not just something for videogames. It’s something that will have a fundamental change in how people interact with technology,” said David Dennis, group product manager of Microsoft’s Interactive Entertainment Business.

Dennis declined to provide an update on how many Kinect sensors the company has sold since last season. To be sure, it has a long way to go to a majority of owners having it.

More than 55 million of the latest Xboxes have been sold to date, compared to the 10 million sensors sold, based on last year’s sales figures.

But he said the 75 new Kinect games available for the Xbox coming out this holiday are four times the number of games that came out for the launch last year.

Sony’s PlayStation Move, which it says has sold eight million devices, expects to launch a third of the titles, or 26, between September and December this year.

Tony Key, SVP of Sales & Marketing at Ubisoft, says its company has a dozen games, especially made for the Kinect, coming out this holiday.

“We are big believers and we’ve had a lot of success on it. We are going to continue to invest in the space, and it’s a great way to broaden the market,” he said. “Motion-controlled this year will sell more than last year. Kinect has a bright future. We have more Kinect games and a higher forecast on Kinect games.”

The range of games has expanded vastly beyond the dance, fitness and sports genres that launched last year. However, in general, the games still tend to still be more family-friendly and casual and aren’t meant for the hardcore demographic.

“It was about breaking down the barriers and making it easier to play. The games we launched with fundamentally and absolutely exploited the magic of Kinect,” Dennis said.

But that’s slowly changing. For example, some of Ubisoft’s titles — such as Just Dance 3, Just Dance Kids 2 and Your Shape Fitness Evolved — follow the status quo, but the publisher is bringing Kinect aspects to all future Tom Clancy games, including Ghost Recon Future Soldier, which comes out early next year.

In the game, players use hand gestures to customize weapons and voice controls to choose different attachments.

Dennis said there are many more examples of games that have Kinect features that aren’t necessarily Kinect-only games.

For instance, in Forza Motorsport 4, a racing game, players can look to their left to see a competitor’s car out the driver’s side window. Electronic Art’s Mass Effect 3, coming out next year, will allow players during battle to use voice controls to talk to their squad mates, including something like, “take cover on the left!”

More broadly, Kinect is also being integrated into all aspects of entertainment on the Xbox, including the ability to use Bing to search the music, games and video catalog on Xbox Live, or control Netflix.

In Xbox’s latest Kinect commercial it illustrates how Kinect has everything to do with it being a replacement for a remote control, and never even shows anyone playing a game.

Here’s a video showing off Ubisoft’s Tom Clancy’s Ghost Recon’s GunSmith feature:

Both applications will enable consumers to shop online or see what’s available locally. Orders can be shipped or picked up.

The apps are being released ahead of the end-of-the-year shopping frenzy, which many retailers are hoping will be one of the busiest mobile commerce events ever.

“As customers use more smartphones and tablets, the Wal-Mart customer is doing the same thing,” said Gibu Thomas, the company’s SVP of mobile and digital.

That’s true, and it’s scary for big retailers. Increasingly, consumers are scanning barcodes to get reviews and compare prices before deciding whether to make a purchase or go somewhere else.

Thomas said the apps are not a defensive move against this trend, but rather a way to give consumers what they want. ”We want to know how we can help our customers shop better with us, which will make them shop more with us,” he argued.

Wal-Mart’s first iPad app launched about a week ago.

It lets people browse inventory in their local store, while also seeing what else is available online. Instead of duplicating the online experience, they’ve created categories. For instance, in the home section, shoppers will browse a catalog-like experience, where they’ll see pots and pans, stereo speakers and outdoor fireplaces without any additional information.

To see prices or more details, a user will have to choose an item.

The major new feature of the iPhone application, which originally launched more than a year ago, will be a shopping list with integrated voice dictation using Nuance’s speech recognition, and discounts through a partnership with Coupons.com.

The app will be available as soon as it receives Apple’s approval.

This app gets pretty close to what many companies have been describing as mobile commerce — minus near field communication that would allow users to tap and pay. And, at Wal-Mart’s scale, this is truly something for the mass market.

Thomas said 90 percent of consumers who come to a Wal-Mart store on a weekly basis come with a shopping list.

The iPhone shopping list feature will allow people to enter items manually using predictive text. Type “cheddar,” and you’ll see a number of cheese brands and the price of each item.

Consumers will also be able to enter items using their voice. When Thomas demonstrated it to me, the app was fairly accurate. It recognized orange juice and sour cream as one item each, but Campbell’s soup came up as two.

Because the real price is listed, budget-conscious shoppers can decide how much to pay for groceries before even getting to the store. Coupons from Coupons.com will also be integrated into the shopping experience. You might type in “yogurt,” but decide on Yoplait for the discount.

For some stores, Wal-Mart has given consumers the ability to find out what aisle the items are in from the phone. That capability will roll out to more stores as it comes out of beta. Eventually, the information could be overlaid on a map to show the most efficient route for getting all of your items.

Thomas also said the company anticipates being able to store shoppers’ receipts electronically, so that items purchased will be uploaded to an individual’s device, making it easier to create shopping lists in the future.

“We think of your mobile phone as your loyalty card. We don’t have cards but we think of it in the sense that you can use your phone to surface real-time discounts,” he said.

The applications were built by @WalMartLabs in Silicon Valley, which serves as the technology hub for the Bentonville, Ark.-based retailer.

In October, the online fashion magazine attracted 4.3 million visitors, generating 40 million page views; it has 600,000 subscribers signed up for local editions in five cities nationwide.

To date, though, it has mostly monetized the company through advertising.

Co-founder Philippe von Borries said that 80 percent of the revenue this year will come from ads, and 20 percent from commerce. Next year, he hopes the ratio is closer to 40 percent from commerce.

“Content drives incredible engagement, and now that we have built such a sizable audience of women who tune in every day through email, Facebook, Twitter and Instagram — we are building exciting new opportunities to shop our content,” he said.

Today, the company is relaunching its e-commerce component, called Reserve. The site, which is separate from the editorial, will offer only a few items a day, and could be connected to the content that appears in the magazine; it is currently offering a selection of boots and handbags.

To support the launch, the company raised $4.5 million in funding this summer in a first round from Floodgate and First Round Capital.

Von Borries said the New York-based company is hiring aggressively to add to its current 49 employees, and that its revenues are on an annual run rate of $15 million. Last year, its revenues totaled $2 million.

The second round of funding was led by Battery Ventures. The company previously raised money from the fbFund, a $10 million seed fund and joint venture run by Facebook, Founders Fund and Accel Partners.

Nisan Gabbay, founder and CEO of Sociable Labs, said Sociable is exploring what social commerce means, and from what he’s determined so far, he doesn’t believe it means people shopping on Facebook.

Rather, he thinks the most value lies in connecting to friends on actual retail sites to share recommendations.

For instance, it would be helpful if people could see which of their friends are registered to run in a 5K when signing up for the race, or if anyone they know has stayed in a particular hotel in Miami before using a travel site to book a room.

Sociable’s beta customers include Active.com, Chegg.com, Backcountry.com, Rue La La, HauteLook and Sole Society.

“Facebook is focused around entertainment, but it’s not about discovery or an immersive experience,” Gabbay said. “I find that the right experience is to offer the feature set where they already shop online, and by adding social features and the graph into that experience.”

Currently, most social commerce experiences are tied to the “like” button.

You can like a product and have it show up in your news feed on Facebook. But that information is not useful to your friends until they are shopping for something similar, at which point it may not be easy to find.

“Not everything can happen on Facebook,” Gabbay said. “Your friends don’t want to see what you are buying until they are making a decision.”

Privacy protections will obviously be key with this sort of integration and long-term cataloging of consumer purchases. But after a quick look at how Sociable is integrated on Active.com, a Web site dedicated to sports events, it doesn’t feel invasive. It’s information that friends would normally share on Facebook, but which would instantly get lost in the stream of news.

Sociable Labs will charge its lowest-paying customer $50,000 a year for services and licenses. The company currently has 25 employees, and plans to use the funding to deploy the software more broadly and market it, now that it is coming out of beta today.

The document shows MasterCard’s push to create products based on information about people’s purchases that help marketers understand consumer behaviors, target ads and measure the effectiveness of ad campaigns.

One portion describes how shopping histories could be used to understand people’s lifestyles and motivations. “The combination of actual purchase behavior with attitudinal and demographic information provides an unparalleled understanding of the consumer,” it says.

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