Online Retail Success on Cyber Monday

Share Article retailers see sales increase even in a down economy

Some good economic news for a change: e-Commerce provider reported an increase in order volume on Cyber Monday over the same date last year. "Cyber Monday" is the Monday immediately following Black Friday - the unofficial kick-off to the holiday shopping season.

"We saw our retailers improve order volume 20% versus the same time in '07," says Peter Koizumi - Shopster's Marketing and Sales Manager. So, does this trumpet the success of online sales over the recessionary economy? "Not quite. While there was an improvement in total number of sales, the per order shopping cart value decreased. More people were buying but spending less."

Shopster has two kinds of clients: Retailers selling from an online storefront and sellers utilizing Shopster as a dropship product source for sales on sites like eBay and Amazon Marketplace. Both groups contributed to the volume growth. The trends across these diverse sales channels indicated that consumers are still interested in buying, they are just doing so with more concern for price.

"We have taken two things away from Cyber Monday this year," according to Shopster CEO Sarath Samarasekera. "First, we saw that the recession isn't keeping shoppers away. They're just exercising greater financial restraint when it comes to choosing what to buy. Second, we saw changes to sales performance on Cyber Monday. Industry pundits have bandied around this term 'Cyber Monday' as a online corollary to 'Black Friday' for a few years now. It was almost an assumed high sales day without too much adequate sales data to back it up. I think we've seen the emergence of a reputable online sales trend."

Shopster did report an overall increase in total sales value on that day, but that increase was more in line with the lower predictions of industry analysts. Samarasekera adds, "That twenty percent increase in volume shows the potential strength of the online branch of the economy. We're not seeing the same trends as offline stores. We're seeing legitimate growth from consumers finding better deals online than in-store, ordering from the comfort and convenience of their homes and away from crowds, and feeling safer about their credit cards. With more customers flocking to buy online, we're confident in the continued market share growth of e-Commerce."

While a recession could not keep shoppers away, the changes in spending behavior echo how consumers feel about the economy.


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