August 17, 2010, 1:48 PM

Web sales lose their luster for Bidz.com in Q2

E-commerce sales declined 4.5% for the quarter ended June 30.

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Shoppers can build their own jewelry at DiamondDesignGallery.com

Online jewelry retailer and auctioneer Bidz.com reported a drop in overall web sales in the second quarter, but business-to-business e-commerce sales increased at a substantial rate.

For the second quarter ended June 30, Bidz.com, No. 125 in the Internet Retailer Top 500 Guide reported:

  • Web sales were $25.7 million, a 4.5% decline from $26.9 million in the second quarter of 2009.
  •  Business-to-business e-commerce sales increased year over year 303.4% to $1.9 million from $471,000.
  • The average selling price per order was $198, a 10% increase from $180 in the prior year.
  • The average number of daily orders decreased 14.7% to 1,460 from 1,712 the second quarter of 2009.
  • The average number of items sold per day decreased 2% to 5,840 from 5,956
  • The acquisition cost per new buyer was $39, a 29.1% decrease from $55 in the second quarter of 2009.
  • Net loss in the second quarter was $653,000, compared with net income of $693,000 in the same period of 2010.

“We are working hard to continue to build awareness and visibility of all three of our sites, Bidz.com, Buyz.com and Modnique.com,” says CEO David Zinberg. “Additionally, we are starting to see more demand for our brands internationally, and we are now seeing improvements in many markets around the world. Canada, Australia, Saudi Arabia and Spain are among our top international markets.”

For the first six months of the year, Bidz.com reported:

  • Web sales decreased 12.4% to $50.2 million from $57.3 million in the period of January through June 2009.
  • Net loss was $764,000 compared with net income of $2.2 million in the prior year period.

“We aggressively reduced inventories by $5.7 million from year-end, which contributed to a very significant increase in net cash from operations of $12.2 million for the six-months period ended June 30,” says chief financial officer Lawrence Kong. “We also substantially increased our cash balance from year-end of $1.1 million to $9.7 million in the second quarter 2010. We are confident that these aggressive liquidity steps will position us well for the future.”

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