Contact Us          Submit a News Story          News Archives          Home

E-Commerce News

eCommerce sales boost of 24 percent since Black Friday

December 6, 2005

According to a new study, Christmas eCommerce shopping got off to a rapid start this holiday season, with eTailers reporting a buyer spending boost of 24 percent over 2004's holiday season.

According to comScore Network's 2005 Online Holiday Shopping Update, preliminary numbers of non-travel online spending were at the $9.75 billion level during the first month of what is considered the beginning of the holiday shopping season.

From Nov. 1 to Dec. 2, shoppers not only spent more but were willing to purchase a wider variety of products than they did during the same period last year, according to the market research firm.

Spending on what has become known as "Cyber Monday," the biggest online shopping day, increased 26 percent over last year to $485 million.

And according to the Research 2005 eHoliday Mood Study, 77 percent of online retailers said that their sales increased substantially last year over the preceding year on the Monday after Thanksgiving.

Gian Fulgoni, chairman of comScore Networks, said increased experience and comfort with buying online are likely variables that have led to consumers' willingness to purchase a wider variety of goods at higher prices.

"Early results confirm that this is going to be another excellent year for online buying," Fulgoni said in a statement.

The study showed purchases of sports and fitness equipment is up 59 percent; furniture, appliances and equipment saw a 50 percent increase; and apparel and accessories rose 37 percent.

Overall spending growth is expected to remain steady at 24 percent through the end of December, according to comScore Networks.

And while more money is spent online this year, is appears that fewer shoppers are accounting for the bulk of sales.

Nearly one-fifth of the U.S. online shoppers account for nearly half of total online spending, according to another study.

Nielsen//NetRatings reported that the heaviest online buyers, dubbed "Most Valuable Purchasers" (MVPs), accounted for 18 percent of the online buying population.

However, most online shoppers, 55 percent, spent less and bought less frequently, according to the firm.

"Each retailer needs to analyze its own customer base to identify its respective MVPs and develop targeted marketing programs that will maximize revenue from these shoppers," Heather Dougherty, senior retail analyst with Nielsen//NetRatings, said in a statement.

"Not only are the MVPs valuable based upon sales and number of purchases, they are also inordinately loyal to the retailers that they purchase from."

Dougherty suggests online retailers tailor loyalty programs that reward the "MVPs" for purchasing at their sites in order to drive repeat sales and maintain a strong relationship with these customers throughout the year.

Source: Internet News

Advertise on E-Commerce News

Advertise on E-Commerce News and increase your site's visibility while boosting your sales.

If you have a product or service that deals with the ecommerce or ebusiness field, advertising on E-Commerce News can bring you new sales leads and close new marketing channels. This news portal is read by over 25,000 people a week.

Businessmen and woman that either own an ecommerce website, an ebusiness franchise, a B2B commercial exchange or by people in all walks of life that need to keep abreast of this fast-changing field. For more information on the many advantages of advertising on our news portal or to request pricing information, please send us an email and a marketing representative will be glad to answer you promptly.

Contact | Submit News | News Archives | Home

Copyright E-Commerce News, 2005. All rights reserved.

Avantex offers professional Web hosting services at wholesale-only prices. Get the best Linux or Windows hosting package for your eCommerce website. Learn more by clicking here.