Online Sales Rise Dramatically For 2004 Holiday Season - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance
News
12/29/2004
05:41 PM
50%
50%

Online Sales Rise Dramatically For 2004 Holiday Season

Consumers are becoming more comfortable with making last-minute purchases online, and vendors are getting better at fulfilling late orders.

Online retail sales took off this holiday season as consumers increasingly took to shopping from the comfort of their homes.

Online sales, excluding travel-related sales, for the week ended Dec. 26 were $1.2 billion, according to market-research firm ComScore Networks.

Visa USA said that Visa-branded cards were used to make $1.8 billion in online purchases, including travel-related purchases, for the same week. That's up 58% over the same period last year. The number of online transactions reached 24 million, up 43% from a year ago, according to Visa's SpendTrak report.

For the week ended Dec. 19, Visa's online sales were $2.7 billion (up 39%) and online transactions were 34 million (up 34%). Similar increases were recorded for preceding weeks.

Amazon.com Inc. reported its busiest holiday shopping season ever. For the first time, the company's sales of consumer-electronics products exceeded book sales. During the Nov. 25 to Dec. 24 period, Amazon even set a single-day record of more than 2.8 million items ordered, although it didn't disclose which day that occurred.

The season saw a surge in the use of plastic for both in-store and online purchases. MasterCard International processed $60 billion in sales and 914 million transactions over its Banknet authorization network for the period between Thanksgiving and Christmas, an increase of 13% and 18%, respectively, over last year. The peak-shopping day for MasterCard occurred Dec. 23, when it processed 37 million transactions.

The data indicates a shift toward more last-minute shopping online. In 2002 and 2003, the peak period for online sales occurred two weeks after Thanksgiving and then dropped off sharply, according to ComScore. In 2004, Visa's peak online sales also took place two weeks after Thanksgiving, but there was no drop-off afterward; sales stayed at or near the peak level right up until Christmas.

The trend toward more last-minute shopping online reflects the use of better forecasting techniques by retailers, says David Schatsky, senior VP at JupiterResearch, a market-research firm. Retailers, he says, are becoming more sophisticated in tracking online sales for the purpose of determining how much inventory to keep on hand. That, in turn, is enabling them to ship later in the season and offer consumers later cutoff dates for making online purchases.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
News
How to Create a Successful AI Program
Jessica Davis, Senior Editor, Enterprise Apps,  10/14/2020
News
Think Like a Chief Innovation Officer and Get Work Done
Joao-Pierre S. Ruth, Senior Writer,  10/13/2020
Slideshows
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
Register for InformationWeek Newsletters
Video
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll