During the Great Depression, financially devastated Americans sold turnips along side the road to make ends meet. Today, they merely boot up their computer and sell their junk online.

For proof, I called up an acquaintance that makes her living buying and selling on eBay (NASDAQ:EBAY). She answered the phone sounding like she had just spent the last 48 hours on a runaway treadmill. She was tired and grumpy.

“So how did Cyber Monday treat you,” I asked.

“It was insane. I have more orders than I can handle,” I think she replied. In her tired and mumbling tone, it was hard to know exactly what she said.

I do know she cursed and hung up on me when I told her to hang on to her hat with Green Monday and its huge shopping volumes on the way. Experts are predicting it will be the biggest online retailing day of the year.

Mr. And Mrs. Clause go online

While my auction-dealing friend was overworked and tired, I am sure she is glad for the surge in eBay spending. In all, online retail spending was up by 15% or so on Cyber Monday, the closely monitored first day back to work after the Thanksgiving holiday.

While online retailers like Amazon (NASDAQ:AMZN), Gap (NYSE:GPS) and Best Buy (NYSE:BBY) raked in their share of the $846 million spent last Monday, the Web’s largest auction site saw its selling activity soar. EBay reported a 50% year-over-year increase, thanks to its fixed-price sales surging by over 125% from last year.

When the nation’s economy locks its brakes, one of the first places discount shoppers and money-hungry sellers head is eBay. The site’s foundation is built on allowing individual sellers to unload their unwanted “junk” for cash.

As tens of thousands of Americans hit the unemployment line, they are turning to eBay for a shot at some quick and easy cash. Financially desperate sellers will unload just about anything they can live without in order to pay their winter heating bills, mortgages, and, of course, their burgeoning Christmas debt.

Some more discount buying

Wall Street has hammered eBay’s valuation over the past twelve months. A year ago, shares were trading for nearly $35. Today, the few folks savvy enough to buy are getting their shares for just $13.

Unlike so many other companies trading on the major exchanges, eBay does not have any desperate liquidity issues. It does not have to beg to creditors to extend debt maturities. It will not be diluting shares with a last-ditch attempt to increase capitalization. And most importantly, it is in a position to increase its market depth through strategic acquisitions and in-house development.

I know a lot of folks do not like the company’s management. eBay’s CEO, John Donahoe, has made some controversial decisions and certainly plenty of mistakes, but a company with a significant cash cushion and a near-total lack of debt cannot be overlooked by value-minded investors.

This is one of those plays where you have to put emotions aside and look at the reality of the economic situation and the numbers the company is producing. If a bank or manufacturer could post a balance sheet like eBay’s, investors would be drooling to get in on the action.

The worst is behind eBay and its future looks bright. Take a look at the stock and see if it fits your portfolio. I am positive you will like what you see.

Source: eBay (NASDAQ:EBAY) takes advantage of online spending

Spending over the four-day Thanksgiving weekend rose 7.2% from a year ago to about $41 billion, according to the National Retail Federation (NRF). However, a shorter holiday shopping season and frugal shoppers could soon drive retail sales back down to their pre-holiday lows.

“Pent-up demand on electronics and clothing, plus unparalleled bargains on this season’s hottest items helped drive shopping all weekend,” said NRF President and CEO Tracy Mullin. “Holiday sales are not expected to continue at this brisk pace, but it is encouraging that Americans seem excited to go shopping again.”

The NRF continues to forecast a mild 2.2% jump in holiday sales, the smallest gain in six years.

Several details in the NRF report underscored the group’s apprehension. For instance, more than half of the 110 million holiday shoppers that braved the elements this weekend went to discount retailers like Wal-Mart Stores Inc. (WMT). Shoppers also took advantage of so-called “door buster” sales that offered products at extraordinary discounts to early morning customers.

More than 23% of the 73.6 million shoppers that hit stores Friday were in the door by 5 a.m. More than half, 57.6%, were at stores by 9 a.m.

Early-bird specials may have provided a nice boost to Black Friday sales, but offering goods at such cheap prices could backfire by marginalizing profits.

“You’re looking at discounts of 50% to 70% off,” Matthew Katz, managing director in the retail practice of advisory and restructuring firm Alix Partners, told the New York Times. “You have to sell two to three times as much to break even.”

Retailers cannot continue to offer shoppers such steep discounts, and consequently, will find it difficult to keep their attention. That is especially true this year, as thrifty consumers have taken a more targeted approach – swooping into stores for the things they want and retreating without taking the time to browse for additional items.

“Shoppers definitely have a mission this year,” Marshal Cohen, chief retail analyst for NPD Group, told CNN. “They are serious about finding the best deals. They are very budget conscious, they’ve done their research and then they’ll go home.”

Also, this year’s holiday shopping season is five days shorter than last year. Consumers have just 27 days to shop this year, as opposed to 32 in 2007.

Analysts will get another glance into the psyche of the American consumer tomorrow (Tuesday) as sales data emerges for “Cyber Monday,” the unofficial kickoff of the online holiday shopping season.

Initial results showed a 2% increase in online sales over Thanksgiving and Black Friday, and the NRF said it expects another 84.6 million people to take their bargain hunting online Monday. According to a Nielsen Online survey, 36% of consumers will spend half of their shopping budgets on the Web, up from 32% last year.

Internet vendors are prepared for the online rush by offering discounts of their own, as well as free shipping, to potential customers.

The NRF’s eHoliday Survey showed that nearly 84% of online retailers will offer a special promotion on Cyber Monday, up from 72% last year. Nearly 39% of online retailers plan to offer specific deals, while 33% will offer e-mail campaigns and 25% one-day sales. About 23% will offer free shipping on all purchases.

“Online retailers have been planning their Cyber Monday promotions for months and are eagerly waiting to debut these deals to shoppers,” said Scott Silverman, executive director of Shop.org, an online division of NRF. “As shoppers focus on price this holiday season, online retailers will be extremely competitive to offer the very best deals. Americans who are looking to put a dent in their holiday shopping will be able to find thousands of bargains on Cyber Monday.”

Of course that’s not to say it will be any easier for online outlets to draw a crowd. Consumers may be planning to spend a greater portion of their budgets online, but overall those budgets have shrunk.

For the first 23 days of November, holiday online spending reached $8.2 billion, a 4% decline compared to the corresponding days last year, when online sales hit $8.5 billion, according to online marketing research firm, comScore.

“There was an optimism going into the holiday season that online would weather the storm a little bit better,” Jessica Ried, associate director of research for Resource Interactive, an online-marketing consultancy told TIME magazine. “But this year in November we’ve seen the first online sales decrease ever.”

“I don’t know that this is the only prediction to go by,” Ried added, “but a dire prediction from an organization as big as comScore does give retailers pause.”

Source: Black Friday, Cyber Monday Fail to Allay Retail Anxiety