E-Commerce Driving to 170 Billion This Year

by Jack Loechner, Nov 21, 2006, 3:00 AM

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E-Commerce Driving to 170 Billion This Year

comScore Networks recently reported that, In the third quarter of this year, online non-travel ("retail") spending increased to $23.1 billion (up 23 percent), while travel spending, despite a slowing growth rate, reached $18.2 billion (up 9 percent). Overall, total online spending by consumers reached $41.3 billion in the third quarter, representing a 16-percent increase versus the same period in 2005.

U.S. Online Consumer Spending (Billion $, Q3 2006 vs. Q3 2005)
E-commerce Spending	Q3 (Jul - Sep)		Percent Change
	2005	2006
Non-Travel	$18.8	$23.1	23%
Travel	$16.8	$18.2	9%
Total	$35.6	$41.3	16%
Source: comScore Networks

Excludes Auctions and Large Corporate Purchases

While total non-travel spending rose 23 percent, some retail categories far outperformed the average, including Consumer Electronics (excluding PC Peripherals), which rose 42 percent and Apparel & Accessories, up 32 percent versus the same quarter last year.

Sales Growth for U.S. Non-Travel Online Consumer Spending (Select Retail Product Categories Q3 2006 vs. Q3 2005)
Retail Category	Percent Change
Consumer Electronics (Excl. PC Peripherals)	42%
Apparel & Accessories	32%
Sport & Fitness	29%
Computer Software (Excl. PC Games)	27%
Event Tickets	22%
Source: comScore Networks

Excludes Auctions and Large Corporate Purchases

Through the first three quarters of 2006, total e-commerce spending rose 19 percent versus last year, buoyed by a 24 percent increase in non-travel spending to $69.1 billion. Online travel spending increased 13 percent.

U.S. Online Consumer Spending (Billion $Q1-Q3 2006 vs. Q1-Q3 2005)
	Jan - Sep		Percent Change
	2005	2006
Non-Travel	$55.8	$69.1	24%
Travel	$47.1	$52.9	13%
Total	$102.8	$122.1	19%
Source: comScore Networks

Excludes Auctions and Large Corporate Purchases

Overall, comScore currently forecasts that total consumer online spending in 2006 should reach approximately $170 billion. Of that total, comScore estimates that non-travel e-commerce will break the $100 billion threshold for the first time.

Gian Fulgoni, chairman of comScore Networks, said "Online consumer spending at U.S. sites... remains strong. With year-over-year growth rates in U.S. online non-travel spending at about 23 percent in the third quarter, the Web continues... as one of the important drivers of retail sales growth."

The complete release may be found here.

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