Retailers shift their ad spending from TV, radio and print ads to digital ads.
Web retailing was healthy in June, but not as much as it was in April.
For online retailers in June, sales of full-priced items were up 19.1%, according to the MyBuys E-commerce Wellness Index. This drove the health of the Internet retailing industry up 2.7%, according to the index, a monthly measure based on data from the e-retailer clients of MyBuys Inc., a vendor of product recommendation technology that serves more than 150 web merchants. The study covers MyBuys clients that were active both in June 2010 and June 2009.
Sales of discounted items decreased 26.6% during the month and accounted for an average of 14% of total orders, down from 46% in June 2009. The average depth of discount remains roughly 27%. Total revenue in June 2010 decreased 7.5% compared to the same period one year ago.
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 June result for the MyBuys E-Commerce Wellness Index score—a composite of all the percentage changes—came in at an increase of 2.7%, down from a 20% increase in April.
“Although total online revenue is down, the index provides unique insight into the positive health of the industry,” says Robert Cell, CEO of MyBuys. “Retailers have been successful at executing strategies to increase purchases at full price while reducing their reliance on discounting strategies.”
The June 2010 index also demonstrates the power of personalization, the index shows, as retailers saw a 17.1% increase in average order values for personalized transactions compared to sales without personalization.