SHOPPERS in Singapore are not only thronging the streets for holiday gifts, they are also trawling the Web - with an online budget that exceeds what they plan to spend at brick-and-mortar stores.

Online shopping is gaining favour among Singaporeans. A recent survey commissioned by MasterCard Worldwide put the number of people intending to shop online for holiday gifts this year at 60 per cent. Only 35 per cent said they shopped on the Internet last year.

Respondents also indicated they would spend more online, with an average per-person spending of $1,148 compared with $1,045 at physical stores.

The survey was conducted by the United States-based research consultancy firm Ipsos-Insight Corporation between late September and early October this year. It polled about 500 people in Singapore aged 18 and above.

Figures from newspaper reports showed that in 2005, at least 27 per cent of Internet users here bought at least one item online, with each online shopper spending an average of $1,068.

Online shoppers are attracted by the wide variety the Web offers.

Student Charlene Tan, 19, who orders clothes on online forum sgspree.livejournal.com about twice a month, said: 'I can find more unique designs.'

These forums allow participants to aggregate customer orders and buy in large quantities from overseas suppliers for bulk discounts. It is a growing trend among Singaporean youth who want to follow the fashion trends they see in magazines but cannot find the clothes at home.

Thanks to new services like ComGateway and vPost, Singaporeans in the last few years have also been able to order from merchants who will not ship to overseas addresses or accept foreign credit cards for fear of fraud.

ComGateway, a local start-up which works with HSBC and DBS Bank, provides customers with a credit card that is recognised by US merchants. It also provides a billing and shipping address in Oregon to which buyers can send their purchases. ComGateway then redirects the package here for a fee.

SingPost's vPost is helping online shoppers in a similar way, routing packages here from an address in California.

ComGateway has seen a fivefold increase in transactions this year from a year ago, thanks to the weakened US dollar and savings from buying on the Web.

This year, vPost has also witnessed a 50 per cent hike in shipments to Singapore from California. Both companies declined to disclose numbers.

According to ComGateway and vPost, US destinations are the most popular among online shoppers here. Besides the usual sites like Amazon and Victoria's Secret, new sites are also capturing cyber shoppers' attention. They include REI.com for outdoor gear; Chef's Resource for kitchen help and cooking essentials; and Alibris for rare antique and out-of-print books.

However, tours, airline tickets and hotel reservations are the top online purchases. Clothes, accessories and shoes come next. This is according to the MasterCard survey and a separate poll completed recently by AC Nielsen Singapore.

Mr Allan Chee, 45, finance manager at a local event organiser, relies on the Web for his travel bookings as sites like Asiatravel.com and AsiaRooms.com offer up to 40 per cent discounts on hotel rooms. He also prefers to buy air tickets online to avoid travel agent fees.

itham@sph.com.sg