Online Christmas trading is still predicted to see growth with etailers increasing marketing budgets to attract consumers.
Online retailers could still experience significant growth this Christmas trading season despite the worsening global economic downturn.
Analysts and retailers told nma there's confidence the sector will still see good growth over the peak trading season, despite the severe downward trends on the high street.
Richard Chapple, marketing manager at Play.com, said the online retailer was confident about the coming months and had increased its marketing spend by 50% for its Christmas activity.
"Online should do well as long as the journey is easy," he said. "As a specialist entertainment retailer, we should weather it. People tend to turn to DVDs and games rather than going out. DVD sales will spike as they're great value."
The confidence is despite Amazon, the UK's largest online retailer, last week lowering its fourth-quarter targets in light of the economic downturn (nma 23 October).
A recent report by Verdict Research predicted online retailers could see as much as 39.9% growth in sales this Christmas, with online spend estimated to reach £7bn.
However, recent reports from IMRG Capgemini e-Retail Sales Index found growth in consumer spend online slowed dramatically in September to 14.8%, compared with 73.2% for the month the previous year.
IMRG director of operations David Smith estimated online retail would slow over the Christmas period to between 10% and 15% growth.
"This is an unprecedented time for online as it hasn't fully experienced an economic downturn," he said. "During the last recession the internet was in its infancy. Pure-plays will be more likely to benefit as they can react quicker."
Major online brands have already moved to ensure their businesses are well placed to weather the financial downturn this Christmas.
Karen Hazeldine, online brand marketing controller for fashion site Oli, said, "I'm a little concerned about Christmas. We're keeping our fingers crossed that we won't see a downturn in customer spend."
Oli has launched marketing activity to promote its three-month interest opt-out plan, which enables customers to spread the cost of their Christmas shopping, and has also lowered its delivery charges.
Neil Mason, head of UK retail research at Mintel, said brands need to take advantage of the convenience and value of online shopping.
"They key for online retailers is to take the pain out of Christmas shopping," he said. "If they can make the experience easier by offering bestseller lists, recommendations for gift ideas, product reviews and offers, then this should work."
Alex Burmaster, communications director UK and EMEA for Nielsen Online, said, "Price-comparison sites and reward sites are already seeing an increase due to the downturn. Brands need to reinvigorate the association of low prices with online and assure consumers their delivery services are cheap and reliable."