Online Shopping Surge Causes Christmas Gift Delay

Dec 26, 2013 7:44am

This year may have been the tipping point for online sales, and that’s a big reason why UPS and FedEx were overwhelmed by delivery problems just before Christmas. Both shipping firms faced customers’ complaints about delayed gifts. UPS spokeswoman Natalie Black admits “demand was much greater than our forecast,” adding “we are sorry.” Shippers said bad weather also contributed to the delays.

This year has seen a surge in online shopping. According to IBM Digital Analytics, online Thanksgiving weekend sales jumped about 15 percent compared to 2012, and the Christmas week increase may have been greater.

READ MORE: UPS OVERLOAD LEAVES KIDS TOYLESS ON CHRISTMAS

Amazon, Walmart and Kohl’s were among the retailers that missed some target delivery dates. While online sales soared, foot traffic was down at many brick and mortar stores. Amazon says its customers who did not get their goods delivered on time would get a $20 gift card.

The day after Christmas is usually the busiest of the year for returns and shoppers who buy things with gift cards. “The most common things that are returned are toys,” says Travis Preston, manager of a Super Target in Shawnee, Kan.

“You know it’s just that day and age where people want it and they want it now and they want it quickly to the point where multiple family members bought the same thing for the same child.”

Preston’s advice to shoppers with returns is that if they want to get fast service bring a receipt. “It’s one scan for our team member and we can get you in and out in a couple minutes.”

The headaches at Target are even more intense than for most retailers. Reuters reports the hackers who stole data on up to 40 million credit and debit card accounts also obtained encrypted PINS – personal identification numbers. Target says it has no reason to believe PIN data was stolen.

The company says it is aware of “limited instances” of scam emails, where fake emails have been sent to customers. Target says it is creating a section of its website to contain copies of Target’s official communications.

Shipping and mailing may get more expensive soon. US Postal regulators have approved a temporary price hike of 3 cents for a first-class stamp, to 49 cents a letter. Other rates will also rise. The Postal Service is losing billions of dollars a year.

The global economy keeps chugging along but some China experts are worried about a slowdown in growth. Perhaps they should relax. According to state media, growth for the world’s second-largest economy slowed to 7.6 percent this year. The Xinhua News Agency cited a Cabinet report to China’s legislature that said growth declined from 7.7 percent in 2012. That was above the ruling Communist Party’s target of 7 percent growth in its latest five-year development plan. China’s growth rate is much stronger than in most developed nations.

The US stock market is on track for its strongest annual gains in a decade. Futures rose again this morning after another move higher on Tuesday. Japan’s Nikkei Index is at a six-year high – now over 16,000.

Richard Davies Business Correspondent ABC News Radio Abcnews.com Twitter: daviesnow 

AP amazon center tk 131216 Online Shopping Surge Causes Christmas Gift Delay

An Amazon distribution center, just before Christmas. AP Photo.


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