It's a mad, mad digital world
Americans waited until the last minute to buy holiday gifts, but retailers weren't prepared for the spike.
Heavy spending in the final days of the mostly lackluster season sent sales up 3.5 percent between Nov. 1 and Tuesday, according to MasterCard Advisors SpendingPulse, which tracks payments but doesn't give dollar figures.
Online shopping led the uptick, with spending up 10 percent to $38. 91 billion between Nov. 2 and Sunday, research firm comScore said.
"We always have last-minute Charlies, but this year even people who normally complete shopping earlier completed shopping later," said Marshal Cohen, chief retail analyst at market research firm NPD Group.
The late surge caught companies off guard. UPS and FedEx failed to deliver some packages by Christmas due to a combination of poor weather and overloaded systems, leaving some unhappy holiday shoppers.
Justin Londagin and his wife ordered their 7-year-old son a jersey of Russell Wilson of the Seattle Seahawks from NFL's web site on Dec. 19. They paid $12.95 extra for two-day shipping to get it to their Augusta, Kan., home before Christmas, but it didn't arrive in time.
"We had to get creative and wrote him a note from Santa to tell him that the jersey fell out of the sleigh and Santa will get it to him as soon as he could," he said.
Amazon is offering customers with delayed shipments a refund on their shipping charges and $20 toward a future purchase. And other retailers such as Macy's said they are looking into the situation.
The last-minute surge this year solidifies the increasing popularity of online shopping, which accounts for about 10 percent of sales during the last three months of the year. It also underscores the challenges that companies face delivering on the experience, particularly during the holiday shopping season that runs from the beginning of November through December.
Analysts say FedEx and UPS typically work closely with big retailers to get a sense of the volume of packages they'll handle during peak times like the holiday season. Extra flights, trucks and seasonal workers can be added if the projections are large.
But this year, David Vernon, a senior research analyst at Sanford C. Bernstein, said weather played a role. The early December ice storms in Dallas could have hurt operations, he said, and packages can start to accumulate. And that got compounded by a late surge in shipments, he said.
"Clearly, as a group, (they) underestimated the demand for Internet retailing during the holidays," Vernon said.
Another problem was the growing popularity of retailers offering free shipping. Amazon, for one, has a two-day free shipping offer that comes with its $79 annual Prime membership. The company said in the third week of December alone, more than 1 million people signed up for the membership.
"Frankly the right hand wasn't talking to the left," said Forrester analyst Sucharita Mulpuru. "The marketing teams of a lot of web retailers (offering free shipping) were not talking to the operations and supply chain teams."
The resulting delayed shipments could be a problem for shippers. UPS and FedEx did not quantify how many packages were affected but said they were just a small fraction of total holiday deliveries.
• Bye bye, bile? Websites try to nix nasty comments
By BARBARA ORTUTAY
AP technology writer
NEW YORK - Mix blatant bigotry with poor spelling. Add a dash of ALL CAPS. Top it off with a violent threat. And there you have it: A recipe for the worst of online comments, scourge of the Internet.
Blame anonymity, blame politicians, blame human nature. But a growing number of websites are reining in the Wild West of online commentary. Companies including Google and the Huffington Post are trying everything from deploying moderators to forcing people to use their real names in order to restore civil discourse. Some sites, such as Popular Science, are banning comments altogether.
The efforts put sites in a delicate position. User comments add a lively, fresh feel to videos, stories and music. And, of course, the longer visitors stay to read the posts, and the more they come back, the more a site can charge for advertising.
What websites don't want is the kind of off-putting nastiness that spewed forth under a recent CNN.com article about the Affordable Care Act.
"If it were up to me, you progressive libs destroying this country would be hanging from the gallows for treason. People are awakening though. If I were you, I'd be very afraid," wrote someone using the name "JBlaze."
YouTube, which is owned by Google, has long been home to some of the Internet's most juvenile and grammatically incorrect comments. The site caused a stir last month when it began requiring people to log into Google Plus to write a comment. Besides herding users to Google's unified network, the company says the move is designed to raise the level of discourse in the conversations that play out under YouTube videos.
One such video, a Cheerios commercial featuring an interracial family, met with such a barrage of racist responses on YouTube in May that General Mills shut down comments on it altogether.
"Starting this week, when you're watching a video on YouTube, you'll see comments sorted by people you care about first," wrote YouTube product manager Nundu Janakiram and principal engineer Yonatan Zunger in a blog post announcing the changes. "If you post videos on your channel, you also have more tools to moderate welcome and unwelcome conversations. This way, YouTube comments will become conversations that matter to you."
Anonymity has always been a major appeal of online life. Two decades ago, The New Yorker magazine ran a cartoon with a dog sitting in front of a computer, one paw on the keyboard. The caption read: "On the Internet, nobody knows you're a dog." At its best, anonymity allows people to speak freely without repercussions. It allows whistle blowers and protesters to espouse unpopular opinions. At its worst, it allows people to spout off without repercussions. It gives trolls and bullies license to pick arguments, threaten and abuse.
But anonymity has been eroding in recent years. On the Internet, many people may know not only your name, but also your latest musings, the songs you've listened to, your job history, who your friends are and even the brand of soap you prefer.
"It's not so much that our offline lives are going online, it's that our offline and online lives are more integrated," says Mark Lashley, a professor of communications at La Salle University in Philadelphia. Facebook, which requires people to use their real names, played a big part in the seismic shift.
"The way the Web was developed, it was unique in that the avatar and the handle were always these things people used to go by. It did develop into a Wild West situation," he says, adding that it's no surprise that Google and other companies are going this route. "As more people go online and we put more of our lives online, we should be held accountable for things we say."
Nearly three-quarters of teens and young adults think people are more likely to use discriminatory language online or in text messages than in face to face conversations, according to a recent poll from The Associated Press-NORC Center for Public Affairs Research and MTV. The poll didn't distinguish between anonymous comments and those with real identities attached.
The Huffington Post is also clamping down on vicious comments. In addition to employing 40 human moderators who sift through readers' posts for racism, homophobia, hate speech and the like, the AOL-owned news site is also chipping away at anonymous commenting. Previously, anyone could respond to an article posted on the site by creating an account, without tying it to an email address. This fall, HuffPo began requiring people to verify their identity by connecting their accounts to an email address, but that didn't appear to be enough and the site now also asks commenters to log in using a verified Facebook account.
"We are reaching a place where the Internet is growing up," says Jimmy Soni, managing editor of HuffPo. "These changes represent a maturing (online) environment."
Soni says the changes have already made a difference in the quality of the comments. The lack of total anonymity, while not a failsafe method, offers people a "gut check moment," he says. There have been "significantly fewer things that we would not be able to share with our mothers," in the HuffPo comments section since the change, Soni says.
Newspapers are also turning toward regulated comments. Of the largest 137 U.S. newspapers - those with daily circulation above 50,000 - nearly 49 percent ban anonymous commenting, according to Arthur Santana, assistant communications professor at the University of Houston. Nearly 42 percent allow anonymity, while 9 percent do not have comments at all.
Curbing anonymity doesn't always help. Plenty of people are fine attaching their names and Facebook profiles to poorly spelled outbursts that live on long after their fury has passed.
In some cases, sites have gone further. Popular Science, the 141-year-old science and technology magazine, stopped allowing comments of any kind on its news articles in September.
While highlighting responses to articles about climate change and abortion, Popular Science online editor Suzanne LaBarre announced the change and explained in a blog post that comments can be "bad for science."
Because "comments sections tend to be a grotesque reflection of the media culture surrounding them, the cynical work of undermining bedrock scientific doctrine is now being done beneath our own stories," wrote LaBarre.
We can't wait to see the response to this story.