December 9, 2010, 1:10 PM

Margins improve as discounts dip

MyBuys says online retailers reduced discounts by 11% over Thanksgiving weekend.

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November was a very good month for the 200 e-retailer clients of MyBuys Inc.: Web sales increased 41% and revenue from non-discounted items was up 52% compared with November 2009. 

Those increases drove the November 2010 MyBuys E-commerce Wellness Index up 17.3% compared with October 2010 and up 61% compared with November 2009. MyBuys attributes the increase to a 42% decrease in the number of orders with promoted items and a 50% increase in orders without promoted items. Plus, the average depth of discount dropped 2%.

Web sales increased 16% year over year on Black Friday, the busy shopping day after Thanksgiving, and 23% on Cyber Monday, the online shopping heyday after Thanksgiving, for the e-retailer clients of the personalization and product recommendations technology provider. Retailers over the entire holiday weekend increased their margins as sales of non-promoted items increased 44% and discounting declined by 11% compared with the same weekend last year.

“BabyPhat.com was able to capitalize on one of the most highly trafficked weekends,” says Dan Parise, business development marketing director at eFashion Solutions, which operates BabyPhat.com, a MyBuys client. “Revenue from the web increased 147% this year for us and we are excited for what the rest of the holiday season holds. Plus, we recently launched a personalized m-commerce site with MyBuys and are seeing approximately 10% of total traffic and upwards of 3% of online revenue coming from mobile.”

The MyBuys E-commerce Wellness Index is a monthly measure based on data from the e-retailer clients of MyBuys. The study covers MyBuys clients that were active both in November 2010 and November 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 index also measures how personalization affects web sales. The average order value for sales with personalization such as product recommendations versus sales without was up 14% in November compared with November 2009.

 

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