I've been internet shopping for years now. Not just for Christmas but year-round. I love the convenience and selection. I know that whatever I want to buy, someone, somewhere on the internet is selling it. Sure beats the heck out of running from store to store looking for specific items. The only time that I venture out during holiday season is when there are in-store specials that cannot be purchased online.
And like Cinders, I shop thru rewards programs in order to get a little something back. My favorites are ebates.com, mypoints.com and creationsrewards.net. And I use my rewards credit card to make the purchase. My Chase-i Mastercard give 1% back in the form of webcertificates. Every little bit helps.
My favorite for online shopping are kbtoys.com (easier exchanges than toysrus.com), jcpenney.com,
amazon.com, barnesandnoble.com (free shipping with the purchase of 2 items), bestbuy.com, circuitcity.com (both for free shipping), pacsun.com (skateboarding clothes for DS), Hottopic.com (DD loves the character t-shirts and bags), and sharperimage.com (for nifty gadgets).
I shop early and get it done before Thanksgiving. Everything arrives well ahead of time and I can breathe easily those last few weeks before the big day. I've had relatively few problems, mostly with some dot-bomb companies in the late 90's. I pretty much stick with the larger companies now.