Online Sales Shrinking

According to comScore, e-commerce sales have been sliding down a steep hill this year. While growth is still happening, figures are declining closer and closer to no growth at all.

In year-to-date terms, online sales have increased 10 percent to $158 billion. This may sound healthy, but when compared to growth of 17 percent in 2007, 20 percent in 2006, and 22 percent in 2005, this year’s growth seems paltry.

In 2008, first quarter growth was 19 percent, second quarter growth was 13 percent, and third quarter growth was 9 percent, according to comScore.

If travel is excluded, growth falls to 5 percent in September.

“E-commerce has emerged as the earliest warning signal that there’s a problem with disposable income,” said Gian Fulgoni, chairman of comScore.

The strain on disposable income is hitting those earning less than $100,000 the most. This group’s online spending grew just 3 percent during the third quarter.

Those earning more than $100,000 are making more visits to coupon sites, with 37 percent of this group utilizing these resources compared to before.

Apparel, shoe and accessories, books and magazines, and music, movies and videos are categories that have seen sales declines.

E-commerce sales are expected to grow by 6-10 percent this holiday season, according to comScore.

Source:
http://www.mediapost.com/publications/index.cfm?fa=Articles.showArticle&art_aid=94381