The Grinch may be stealing Christmas

(NBC) - With a dreadful outlook for the holiday shopping season, there are all sorts of deals to be had, and we are not just talking about the malls. You might even find better deals online. Internet shopping sites are waging an all-out war to court financially-strapped consumers.

It may be the Grinch that stole Christmas for many stores and online shopping sites. Both retailers and e-tailers are already advertising steep discounts to lure in holiday shoppers.

The Internet market research firm comscore.com reports sales growth on e-commerce sites has slowed to a puny 1 percent for the lowest rate ever and well below the typical 20 percent gain.

For example, Sony’s high-definition digital video camera with a suggested retail price of $1,200 is down to $869 on dell.com , and Abe’s of Maine has it for $750 while Digital Direct has it for less than $500.

Lori's , a Chicago-based Web site that sells women’s accessories, has cut the price on a chocolate brown hype bag from $270 to $148. K-mart is offering free shipping on orders over $49, something it has never done before.

For shoppers with the lowest consumer confidence in decades, price is not everything- it is the only thing. Free shipping may be an issue as e-commerce sites lower their profit margin, and that could be a double-edged sword. Consumer surveys show buyers are less likely to purchase online of shipping is not free.