That’s it. All done. We’ve wrapped the 2006 holiday season. How did US retail sales fare? Well, it depends who you ask. Ecommerce sites such as Amazon.com, CircuitCity.com and BestBuy.com have seen pretty impressive growth this holiday season. According to Hitwise, ecommerce sales are up no less than 5.9%. Several reports have stated that ecommerce sales hit a 23% increase on the weekend before Christmas. Wowza.

So that leaves us with overall retail sales (meaning a combined total of in-store and online purchasing). According to national retail sales estimates, holiday sales saw only a 3% increase over 2005. That’s less than last years increase - not good.

Of course we could blame the overall slow down on interest rate hikes, gasoline prices or even the unseasonably warm weather. Maybe it’s my interactive radar, but, something stands out to me. There was a significant increase in holiday ecommerce this season. People love the convenience of shopping online, and are flocking to the Web to find a vast selection and variety of consumer products. Here’s the question: Could an increase in online shopping hurt overall retail sales? Stay with me…

What if consumers are purchasing less when they buy online? Perhaps we are less motivated to purchase as much, deterred by shipping rates or less exposed to impulse buys? We may even be finding better deals online and spending less. A recent report from Consumer Reports showed a discount of 36% at Amazon.com for the same purchase as at the retail locations for Borders and Barnes and Noble; where the discounts were a meager 4% and 5% respectively. Even the website for Barnes and Noble had a very respectable discount of 19%

This got me thinking about my own purchases this season. Each year I do at least some of my holiday spending online. This year, for the first time, all but two of my gifts were purchased online, including a GRILL from Amazon.com. The result? I actually spent less on my holiday gift-buying than I did last year - by nearly 100 dollars.

Right, so what does this all mean? Online retailers should consider that buyers behave differently online than they do in-store. The sales and marketing psychology used online needs to factor in these behaviors. Online retailers need to analyze their customer’s online behaviors to determine ways of increasing the average spend per user. Many sites have started suggesting items based on what is in a shopping cart or by buying history. I’ve always considered this a great sales technique. But, maybe it’s not enough anymore.

Don’t get me wrong. I firmly believe ecommerce is a fundamental part of today’s economy. But the marketer in me believes that retailers must continually evaluate their customer experience – both on and offline- in order stimulate and grow consumer spending year after year. That’s right … no rest for the weary.