September 10, 2010, 12:29 PM

E-commerce is feeling a bit better in August

Revenue from full-priced items is up 28%.

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E-commerce revenue from full-priced items surged by 28% in August compared with August 2009; further, sales of discounted items fell by 25%, according to the MyBuys E-commerce Wellness Index.

Revenue from promoted goods dropped 11%. In addition to much stronger margins, total revenue for August increased nearly 5%, stronger than recent months.

The index is a monthly measure based on data from the e-retailer clients of MyBuys Inc., a vendor of product recommendation and personalization technology that serves more than 150 web merchants. The study covers MyBuys clients that were active both in August 2010 and August 2009. The index seeks to measure the health of e-retailing by aggregating total sales, non-promoted sales, discounted sales performance, depth of discounts and average order value. The overall August result for the index score—a composite of all the percentage changes—came in at a potent increase of 23% over August 2009.

“The health of e-commerce continues to strengthen with these powerful August 2010 results,” says Robert Cell, CEO of MyBuys. “The wellness index has consistently showed strong increases in 2010 margins versus a year ago, but these margin increases have caused relatively flat top-line revenue to occur even though gross margins are greatly improving within the industry. August was very positive as total revenue grew by a 5% mark as margins continued to be much stronger. This shows that retailers are successfully adjusting their marketing toward innovation and are less reliant upon price promotion as we head toward the all-important holiday season.”

The MyBuys E-commerce Wellness Index also measures how product recommendations affect online shopping. Retailers saw a 7% increase in average order values for personalized transactions compared to sales without personalization, according to the index.

 

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