MediaPost says here that Ecommerce is down:.
“During the third quarter of the year, ecommerce spending was down 2% year-over-year to $29.6 billion, according to new comScore research. As a result, for the first time ever, ecommerce spending declined over two consecutive quarters from the year prior.
“The third quarter showed negative marginal growth for the second consecutive quarter — the first time on record we’ve witnessed sustained dips in U.S. e-commerce spending, small though the declines may be,” said comScore chairman Gian Fulgoni.”
I wonder if this decline is inline with the decline in overall consumer spending. Is ecommerce down a similar percentage to consumer spending overall? That would seem a good question to ponder.
No surprise here in this statement:
“Free shipping has become an increasingly essential promotion in the e-commerce marketer’s toolkit,” said Fulgoni. “With more than 40% of all e-commerce transactions now including free shipping, it’s clear that consumers respond favorably to this incentive, and in many cases have come to expect it from retailers. The retailers who do not offer free shipping deals this holiday season may find themselves at a significant disadvantage versus those who do.”
This leaves the door open for the big online retailers for which postage and packing is not part of their revenue model. Instead they make their margins on volume.