E-commerce growth has reduced from 25% during June 07 to just 11% in June 2008. Industry analysts feel this might be the result of the recent economic stimulus by the U.S. government.
comScore, Inc. an internet information provider in its recent release stated that there has been a reduction in purchases during the last two months. The report also reveals that the purchase growth drop off started from November 2007.
According to Chairman Gian Fulgoni of comSore, “With the first round of the government’s economic stimulus checks having been mailed in early May, one would have hoped they would have bolstered online spending in May and June,” He also added, “However, recent comScore research reveals that fully two thirds of consumers said they had not planned to spend their stimulus checks and rather intended to use the cash to pay off debt or put the money into savings, a finding we’ll be taking a closer look at during next week’s webinar. In addition, it’s likely the impact of the stimulus may have been felt more offline, where a variety of merchants made it particularly easy for consumers to cash their checks at retail stores.”
The report also discloses that the top hot sellers were video games, consoles and accessories. This was followed by furniture, appliances and equipments.
|Growth in Retail e-Commerce Consumer Spending in Q2 2007 vs. Q2 2008
Total U.S. – Home/Work/University Locations
Source: comScore, Inc.
|Product Category||Percent Change
Q2 2007 vs. Q2 2008
|Total Retail Category (Excludes Travel)||13%|
|Video Games, Consoles & Accessories||73%|
|Furniture, Appliances & Equipment||65%|
|Home & Garden||23%|
|Sport & Fitness||21%|
|Consumer Electronics (excluding PC Peripherals)||5%|
|Apparel & Accessories||13%|
|Flowers, Greetings & Misc. Gifts||-10%|
|Jewelry & Watches||-10%|
|Computers, Peripherals & PDAs||-11%|
|Toys & Hobbies||-11%|
|Music, Movies & Videos||-20%|