PodTech News: Year End Trends - Record Breaking Holiday Online Sales and a Look Ahead

10:12 | Admin | Dec 28th, 2005 12:08pm |

Online sales continue to soar. Of course, the percentage gains look staggering because the sector has hardly scratched the surface of the retail universe. But, before we roll our eyeballs at online spending, keep in mind the Internet is being used in novel ways to significantly influence retailing. How many times do you buy something in a store based on comparisons made online? JupiterResearch’s David Schatsky, senior vice president of research, who fills us in on the nature of the biz and what new developments are expected in 2006.

SAN FRANCISCO December 27, 2005 (PodTech News) – Market researchers and retailers report that holiday spending over the Internet broke records in 2005. Although web-based retailing still accounts for less than 10 percent of all retail sales, the impact of the Internet is probably greater than gross revenue statistics reveal. Analysts say many brick-and-mortar retailers use web sites as a way to reinforce sales in stores.

Predictions and results for 2005 spending vary from firm to firm because of differing methodologies. Amazon.com reported record holiday sales, though the world’s biggest online retailer did not divulge revenue figures except to show it sold more than 108 million items between November 1st and December 25th.

A report from eSpending — which is a joint effort between Goldman Sachs, Nielsen/NetRatings and Harris Interactive — indicates Internet shoppers spent $25 billion from October 29th through December 16th. It represents a 25 percent jump over last year’s numbers.

ComScore Networks called for a 24 percent increase to $19 billion in November and December of 2005 compared to the same period last year. JupiterResearch says 2005 online holiday sales — measured during the months of November and December — are still on track reach $26 billion in the United States, an 18 percent year-over-year jump. The companies are expected to provide results in the first weeks of January 2006.

This entry was posted on Wednesday, December 28th, 2005 at 12:08 pm and is filed under PodTech, PodTech News, Technology. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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