Online shopping mall Shop.com reported a record year in 2005, with sales volume up 190% over the prior year, and December sales alone up 77% over 2004. Traffic for the year was up 250%.
“In 2005, we began to enjoy the full network effect of our marketplace survey,” says Bruce Sellers, Shop com president. Sellers notes that following focused efforts to build traffic in 2004, increased traffic volume attracted more merchants, and more traffic turned into buyers as the result of increased product and brand selection brought in by those merchants. “The network effect kicked in as the three elements of traffic, merchants/brands/products and shoppers actually fueled one another this year, and an upward spiral of growth I all areas was the result,” Sellers says.
The number of merchants on Shop.com nearly doubled in 2005 over the previous year and now number 1,500. The number of products available through the online mall`s universal shopping cart rose 300% over the prior year in 2005 and now exceeds 5 million products, representing nearly 50 million SKUs. That makes Shop.com “one of the largest marketplaces of new, branded, fixed-price products available for purchase in a single location,” according to the company.
The online mall has had particular success in connecting consumers looking for hard to find products with merchants that offer them. On any day, according to the company, as much as 85% of total orders are for individual items that no other consumer purchased on that day.