In its second-largest acquisition, Amazon buys the company for $970 million.
Sales declined 23% in Q2 and are off 18% year to date.
The hard economic times continue for online jeweler and auctioneer Bidz.com Inc.
For the second quarter, Bidz.com, No. 150 in the Internet Retailer Top 500 Guide reported:
- Web sales of $18.3 million, a decrease of 22.8% from $23.7 million in the second quarter of 2010.
- Net loss of $653,000, compared with a net loss of $5.3 million in the second quarter of 2010.
- The average selling price per order of $178, down by 15.6% from $211 in the prior year quarter.
- The number of new buyers was 34,419, down 6.4% from 36,787.
- The average number of orders per day was 1,420, a 6.1% decline from 1,513.
- The average number of items sold per day was 6,160, up by 0.3% from 6,143.
- The average number of items sold per transaction was up to 4.3 from 4.1.
- The acquisition cost per new buyer was $40, down by 21.6% from $51 in Q2 of 2010.
“We anticipated a seasonally weak second quarter with lower revenue and gross margin, and while we are disappointed with our results from the Bidz web site, we are continuing to work hard to strengthen both Bidz.com and Modnique.com, and have seen improvement since the end of the second quarter,” says president and chief technology officer Leon Kuperman.
Modnique.com is a private-sale web site that offers apparel and accessories, shoes, beauty products and home goods.
For the first two quarters Bidz.com reported:
- Web sales of $41.4 million, a decrease of 17.5% from $50.2 million in the first two quarters of 2010.
- Net loss of $764,000, compared with a net loss of $5.7 million in the first two quarters of 2010.