Bidz sales rise 57% for January through September
E-commerce sales for Bidz.com Inc. shined during the first nine months of the year.
Bidz, an online jewelry retailer and auctioneer, posted web sales of $94.2 million in the nine months ended Sept 30, 2006, up from $59.9 million in the first nine months of 2005, an increase of 57.3%. For the third quarter, Bidz, No. 98 in the Internet Retailer Top 500 Guide to Retail Web Sites, also grew its e-commerce revenue by 28.3% to $27.1 million from $21.1 million in Q3 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 118% to $2.5 million in the three months ended Sept. 30, 2006, from $1.2 million in the three months ended Sept 30, 2005.
From January through September, Bidz increased its marketing expenditures by 182% to $7.8 million from $2.8 million in the first six months of 2005. Sales and marketing expenses as a percentage of net revenue increased to 8.3% in the nine months ended Sept. 30, 2006, from 4.6% in 2005. For the first nine months of the year, Bidz had net income of $4.4 million vs. net income of $857,000 for the same period in the prior year.
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