January 30, 2001, 5:16 PM

Online order size up over holidays, says Shop.org

Don Davis

Editor in Chief

The average online order size increased 27% in the 2000 holiday shopping season over the year-ago period, according to new research from Shop.org and The Boston Consulting Group. The survey of 35 online retailers in major gift categories also showed that revenues grew 76% over last year's holiday shopping season. By contrast, average order size in the 1999 holiday season increased only 8% over the previous year's holiday season. The growth in average order size combined with revenue growth is a favorable sign for online retailers, says Shop.org chairman Elaine Rubin. "It shows the growing trust consumers have in the online channel," says Rubin. It's also an indication that many holiday promotions such as free shipping with large orders proved successful." Shop.org/BCG's quarterly surveys have showed ongoing improvement in the performance of online retailers. Customer acquisition costs have decreased from $45 per customer in the first quarter of 2000 to $20 in the third quarter and revenue from repeat buyers has increased.


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