retail

Online Retail Makes Gains In March

online shoppingOnline retail showed signs of life in March as the average number of items per order increased 12% and the average purchase amount went up 4%, according to data from online marketing company Coremetrics.

Average order size climbed from 5.21 to 5.82 items last month over February, while the average order amount rose from $138.26 to $143.93. The shopping cart conversion rate was essentially flat at 34.5%.

Jewelry retailers saw the biggest percentage gains last month, with the average order size and dollar value increasing 13.8% and 13%, respectively. The health and beauty category likewise enjoyed an uptick, boosting average order and amount by 6.9% and 5.3%, respectively. Average time spent on health and beauty sites also increased 12% in March.

By contrast, online spending on sports apparel and gear was down slightly as was time spent on sports retail sites. Overall, online retail activity was still down from a year ago with average order size and amounts falling 8.3% and 6.3%, respectively.

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The rising monthly retail figures in March, however, showed consumers were regaining confidence in their purchasing power as the stock market began to rebound last month, according to John Squire, chief strategy officer for Coremetrics.

Explaining the surprising surge in online jewelry sales amid the downturn, Squire pointed to a reduction in competition. "There have been thousands of jewelers that have gone out of business due to the recession, so there are fewer to choose from, and those who are left standing are reaping the benefit of being still in business," he said. "There's also some used jewelry selling going on."

In February, the average number of goods purchased fell by 13% from the prior month, though the average order amount increased 3.7%.

1 comment about "Online Retail Makes Gains In March ".
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  1. Casey Newman from Knotice, April 13, 2009 at 2:24 p.m.

    Great article, Mark.
    Check out this blog post that also offers some insight into what the future of online retail holds: http://lunchpail.knotice.com/2009/04/13/the-online-retail-sky-isnt-falling/

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