advertisement
advertisement

ComScore: Quarterly E-Commerce Sales Hit $47.5 Billion

Written by Evan Schuman
August 3rd, 2007

The E-Commerce spend in the U.S. for this year’s second quarter jumped 19 percent, to $47.5 billion, compared with last year’s identical quarter, according to a statement released this week from ComScore.

If you take travel out of that equation?in what ComScore considers the pure e-tail segment?the quarterly figure grew 23 percent to $27.2 billion.

Total U.S. online consumer spending reached $170.8 billion last year, with non-travel spending accounting for $102.1 billion and travel spending accounting for $68.8 billion. Based on the first-half growth rates, total U.S. online consumer spending is on track to reach $200 billion in 2007.

OnScore Chairman Gian Fulgoni said the numbers might even grow higher. ?In the past, we?ve seen growth rates accelerate as the year progresses, culminating with the online holiday shopping season,” he said, “so $200 billion may actually turn out to be a conservative estimate.?

The report broke some sales down by category, with the top-gaining category being “video games, consoles & accessories, which jumped 159 percent on the strength of Nintendo Wii and PlayStation 3 sales. Sport & fitness also saw substantial gains (up 58 percent), followed by consumer electronics (up 51 percent) and event tickets (up 44 percent),” the report said.

Another report released this week looked at site responsiveness and reliability of a dozen major electronics retailer Web sites during site evaluations conducted in May and June 2007.

That report?from Keynote Systems?put Amazon and BestBuy as the strongest in online customer experience while CircuitCity took the top slot for site reliability and Staples get kudos for site responsiveness. Keynote also reported that the “Dell Web site saw significant gains in customer experience and satisfaction in the past year, with strong gains in the areas of product interest and the overall perceptions of the visual appeal of its site.”

The report gave a few details about why some of those sites fared well.

“Amazon.com was the top ranked site in terms of search satisfaction, and one of the top ranked sites in six of nine key categories including price satisfaction, product research and overall site navigation and organization. Best Buy showed the most significant gains in online customer experience over the past year and was the number one ranked site in terms of pure customer satisfaction,” a Keynote statement said. “Best Buy also ranked in the top echelon in seven of the nine key categories contributing to a quality online customer experience, including the ease of the purchasing process and customer support. The site?s most significant gains came in search satisfaction.”

As it did last year, Keynote used the report to warn retailers to get ready for the onslaught that is the holiday shopping season.

“A site?s ability to handle user traffic without degrading is a critical indicator of site capacity and readiness for the upcoming holiday season. Keynote found four of the sites were not able, even during this relatively calm period, to handle load without degrading significantly,” Keynote said. “Two sites reported more than 20 hours of outages, where a large number of the users to the site would have been unable to complete a purchase.”

Keynote also described extensive problems with home page and search results pages. Several sites reported Home Pages that downloaded in more than 2 minutes for the narrowband (dial-up) user, while Staples had the fastest Home Page for narrowband users, downloading in about 45 seconds. Staples also reported the fastest Search Results download time at 1.1 seconds for broadband and 12 seconds for dial-up,” Keynote reported.

Keynote traditionally doesn’t release the names of the sites that fared the worst, but the sites that were examined but not mentioned in the top slots were Buy.com, Costco, Office Depot, Sears, Target and Wal-Mart.


advertisement

Comments are closed.

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.