In its second-largest acquisition, Amazon buys the company for $970 million.
The average online buyer will spend $1,089 at e-retailing sites this year, up 25% from last year’s $866, eMarketer reports. That average will grow another 15% next year to $1,249 and then another 12% in 2004 to $1,400.
The average online buyer will spending $1,089 at e-retailing sites this year, up 25% from last year’s $866, eMarketer Inc. reported today in its just-released Retail Industry Online report. EMarketer expects that average to grow another 15% next year to $1,249 and then another 12% in 2004 to $1,400.
The growing average indicates that repeat buyers are becoming a more important facet of the online buying audience, eMarketer says. "With the number of online shoppers continuing to grow, American consumers are also spending more online, thereby creating a healthy prognosis for internet retailers across the board," says Steve Butler, senior analyst at eMarketer. "One significant result is that online retailers` customer acquisition costs are falling."
Retailers also reduced expenses by controlling marketing costs, which fell from $26 per order in 1999 to $12 per order last year, eMarketer says. "The numbers confirm that online retailers` investments are starting to pay off," Butler says. "Nonetheless, pure-play and multi-channel retailers alike are continuing to add new features to their web sites as the online retail channel has proven to be successful."