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E-commerce sales for Bidz.com shined during the first six months of the year. From January to June, web sales at the online jeweler and auctioneer rose 73%. E-commerce sales for Q2 alone jumped 80%.
E-commerce sales for Bidz.com Inc. sparkled during the first six months of the year.
Bidz, an online jewelry retailer and auctioneer, posted web sales of $67.1 million in the six months ended June 30, 2006, from $38.8 million in the first six months of 2005, an increase of 73.1%. For the second quarter, Bidz, No. 98 in the Internet Retailer Top 500 Guide to Retail Web Sites, also grew its e-commerce revenue by 80% to $32.4 million from $18.1 million in Q2 2005.
Bidz is a web retailing and auction company that sells closeout jewelry, art and collectibles. To drive more traffic to its site, Bidz is spending heavily on marketing, the company says in its recently filed quarterly report. In an effort to attract more new and repeat customers, Bidz increased its spending on marketing and advertising by 297% to $2.8 million in the three months ended June 30, 2006, from $714,000 in the three months ended June 30, 2005.
From January through June, Bidz increased its marketing expenditures by 230% to $5.2 million from $1.6 million in the first six months of 2005. Sales and marketing expenses as a percentage of net revenue increased to 7.8% in the six months ended June 30, 2006, from 4.1% in 2005.
“We expect our sales and marketing expenses to continue to increase in absolute dollars as we continue increasing our online marketing campaign in order to attract new customers,” the company notes in its most recent 10Q report.