E-Commerce Sales Continue Rise

Web marketing firm comScore Inc., a Reston, Va.–based company that tracks Internet sales, reported on Aug. 10 that e-commerce sales in the second quarter of 2010 reached $32.9 billion, up 9 percent from a year ago. This is the third consecutive quarter of positive year-over-year growth, following a year of flat growth.

“The second quarter’s continuation of the first quarter’s strong retail e-commerce growth rates is encouraging,” said comScore Chairman Gian Fulgoni in a statement. “We remain cautiously optimistic heading into the second half of the year, but we will be keeping a close eye on unemployment rates, which, along with potential uncertainty in the stock market, could limit growth in e-commerce spending in the near term.”

Despite the cautious warning, one e-tailer believes the news emphasizes that the Web continues to remain a bright spot. “Some retailer panic existed in 2009, when customers became very frugal [and] the discount sites were blowing up,” said Jon Fahrner, chief executive officer of e-tail site Moxsie. “Retailers that didn’t panic and shift gears on pricing are getting back to what probably is most important—merchandise strongly and creatively.”

Moxsie, based in Palo Alto, Calif., carries up-and-coming brands such as Tulle, Dolce Vita and Hellz.

E-tailers are betting on this piece of encouraging news as they gear up for the back-to-school and holiday shopping seasons.

“Q3 has been very promising for us,” Fahrner said. “July exceeded expectations, and we’re excited to get to try new things with creative and innovative products after vendors were playing it safer at the end of last year.”

Healthier revenue streams may allow e-tailers to focus even more on their marketing strategies—a course that in the last few years continues to be set by Web companies as they explore more interactive ways to share product information and engage consumers.

One analyst predicted advancing social-media tools could lead to even more interactive and rich marketing campaigns.

“I believe this is a trend that will continue as online shopping experiences become more engaging, interactive and personalized and the true total cost of goods is factored in, including time, travel costs, etc.,” said Bill Palmer, founder and president of Los Angeles–based Activate Media Group, a company that specializes in strategic e-commerce video solutions for consumer brands. “As online video, virtual-sizing tools and interactive marketing tools continue to improve, online sales will continue to gain share on retail as the preferred shopping method for consumers on their trusted brands.”—Connie Cho