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E-Commerce All Grown Up, Sales Growth Finally Slows

Internet sales set new records, but rise more slowly than last year

By Wesley Oliver,  Newser Staff

Posted Dec 28, 2007 8:39 PM CST
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(Newser) – Online sales continued to out-pace traditional retailers this season, boasting a 19% spike, but fell compared to 25-30% growth rates in past seasons, the New York Times reports. While e-tailers beat the scrawny 3.6% sales growth of traditional stores, experts attribute the slowdown to the maturing of online shopping.

“The season met expectations,” said one industry executive, noting that e-commerce “is still a lot stronger and healthier than overall retail growth.” The 19% growth rate was five times that of offline stores; a year ago, online grew about four times faster. Internet shops enticed customers in part with shipping discounts, and analysts said e-shoppers, who traditionally were wealthier, now have more average incomes.

MasterCard Advisors, a division of the credit card company, estimated that retail sales grew 3.6 percent from Thanksgiving to Christmas, compared with growth rates of 6.6 percent in 2006 and 8.7 percent in 2007, the New York Times reports. (AP Photo/Mark Lennihan)
MasterCard Advisors, a division of the credit card company, estimated that retail sales grew 3.6 percent from Thanksgiving to Christmas, compared with growth rates of 6.6 percent in 2006 and 8.7 percent...   (Associated Press)
Internet sales grew 19 percent--an enviable figure for traditional retailers--but was down sharply from the 25-30 percent growth rates of recent years. Retail industry analysts said the deceleration underscored a tight economy, but also reflected changing consumer and retailing habits, the New York Times reports.
Internet sales grew 19 percent--an enviable figure for traditional retailers--but was down sharply from the 25-30 percent growth rates of recent years. Retail industry analysts said the deceleration underscored...   (Index Stock)
When the receipts are tallied from this holiday, American consumers will have spent around $29.5 billion at Internet shops, according to projections published by comScore, a market research firm. %u201CThe growth rates for previous years were clearly much higher,%u201D said Andrew Lipsman, spokesman for comScore. The research firm...
When the receipts are tallied from this holiday, American consumers will have spent around $29.5 billion at Internet shops, according to projections published by comScore, a market research firm. %u201CThe...   (Index Stock)
Internet retailing is expected to top $120 billion this year. E-commerce continues to set a torrid pace, taking shares from traditional retail stores, the New York Times says. The 19 percent growth clip for online sales is around five times the rate of growth for the offline stores.
Internet retailing is expected to top $120 billion this year. E-commerce continues to set a torrid pace, taking shares from traditional retail stores, the New York Times says. The 19 percent growth clip...   (Index Stock)
Amazon.com said that it had its best holiday selling season, the New York Times reports. The internet retailer said its biggest shopping day had been Dec. 10, with customers ordering more than 5.4 million items or 62.5 items a second on that day.
Amazon.com said that it had its best holiday selling season, the New York Times reports. The internet retailer said its biggest shopping day had been Dec. 10, with customers ordering more than 5.4 million...   (Index Stock)
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US economy • holiday shopping • comScore • online shopping • MasterCard Advisors • retail shopping • e-commerce • Amazon.com

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