In its second-largest acquisition, Amazon buys the company for $970 million.
It’s not only online retail’s giants that experienced a rising tide last year. On-demand service enabled smaller retailers to scale up quickly and catch the wave as well.
On-demand e-commerce service delivered record holiday and 2005 results for the small to mid-sized retailer customers of provider NetSuite, with many equaling or surpassing year-long and holiday season gains recorded industry-wide or by larger competitors. Collectively, NetSuite e-commerce customers in 2005 had more than 58 million unique visitors, nearly 302 million page views, and handled 1.2 million web transactions totaling more than $140 million, the company reports.
According to NetSuite, which provides a suite of e-commerce, CRM, finance and other software, its e-commerce customers during the month of December handled more than 7.8 million unique visitors, more than 36.5 million page views, and more than 164,000 transactions worth more than $18 million.
Recent figures from comScore Networks show that online holiday sales November through December 21 were up 24% over the same period last year. By contrast, several NetSuite customers experienced between 100% and 900% growth year over year, the company reports. Among them, Oriel Wine`s holiday sales increased 1,100% over the previous year and sales in 2005 were up 900^% over 2004. “With NetSuite, we were able to accurately monitor consumer preferences and distribute precisely targeted e-mail offers that generated strong sales results," says John Hunt, the company`s founder.
Organic cosmetics retailer Saffron Rouge saw its web store sales rise by 150% in 2005 over the previous year. Miglia Technology, a European manufacturer of video and storage products for PCs and Apple computers, reports that its web store sales doubled, the number of web site hits rose by 150%, and its card abandonment rate dropped from 39% to 24% year over year.