In its second-largest acquisition, Amazon buys the company for $970 million.
"Despite the downswing in the economy in recent weeks, online spending during the holiday met most expectations," said Cameron Meierhoefer, Internet analyst for PC Data. "Thanks to strong and early web spending this season in areas such as apparel and an impressive post-Christmas kick, overall spending topped $10 billion."
"Even though sales recovered from an earlier slowdown, the results were not evenly distributed across categories or companies," said Anthony Noto, Goldman Sachs Internet analyst. "Categories such as consumer electronics grew at 118% and books/music/video grew at 68%, while toys were not as strong online this year with only 37% year-over-year growth."
The study demonstrated that post-Christmas shoppers appeared less seasonal in their online buying, and boosted spending numbers in computer hardware, apparel, home and garden and game software categories over the previous week. Computer hardware sales increased from $116 million to $232 million over the week, apparel from $98 million to $121 million, home and garden from $10 million to $22 million and game software from $19 million to $21 million.
Customer satisfaction was strong, with over 80% of online consumers reporting they would be likely or extremely likely to shop online again, and approximately 58% of consumers stating that the online shopping experience was better than last year during the Holidays.
An Internet web measurement firm specializing in web commerce, PC Data Online, in cooperation with Goldman Sachs, surveyed 2,715 home-based Internet users Dec. 25 - Dec. 28 concerning their buying practices during Dec. 18 - Dec. 24. The weekly survey is part of a study commissioned by Goldman Sachs e-commerce analyst Anthony Noto and PC Data Online to better understand and measure behaviors, attitudes and trends on online buying during the Holiday season. The margin of error is +/- 2.1 at a 95% confidence level.
Online Consumer Spending by Category Week Ending Dec. 31, 2000
Category Spending (in thousands) % Gift Spending
Apparel $ 121,128 49.2%
Books $ 40,576 39.7%
Computer Software $ 32,479 17.4%
Computer Hardware $ 232,947 34.2%
Game hardware $ 17,024 66.8%
Game software $ 21,010 33.2%
Toys/Childrens $ 48,628 70.9%
Greeting cards $ 6,866 54.9%
Event tickets $ 7,850 29.3%
Electronics $ 46,516 55.8%
Food/Grocery $ 14,865 20.0%
Home N Garden $ 22,250 33.7%
Flowers $ 5,692 83.6%
HBA $ 8,151 9.6%
Personal Accessories $ 21,226 32.5%
Music $ 14,893 42.2%
Pet supplies $ 28,834 11.9%
Sporting goods $ 17,240 39.2%
Travel $ 81,794 12.5%
Video/DVD $ 27,542 24.7%
Other $ 61,211 25.0%
Total $ 878,721