April 7, 2011, 3:15 PM

Small web sales increase masks healthier full-priced product sales

Monthly e-commerce wellness index shows retailers are gaining improved margins.

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Total web sales in March for more than 300 retailer clients of MyBuys Inc. increased 2.3% compared with sales during the same month last year, according to the March 2011 MyBuys E-commerce Wellness Index. Revenue from full-priced product sales jumped 18.3% during the same timeframe while orders with promoted items fell 24%, the index says.

“Retailers are in a much stronger position this year than the past two years as they have continued to move merchandise at much better margins while still being able to grow the overall top line. From the high-level view, revenue being up only 2.3% masks the rebound that retailers are experiencing,” says Robert Cell, CEO of MyBuys, a personalization and product recommendations technology provider. “Merchandising is key to this as consumers are buying full-priced product if it is right for them and communicated effectively. Personalizing each digital touch point is key in facilitating awareness of the right merchandise for each consumer.”

According to the index, retailers in March saw a 19% increase compared with March 2010 in average order values for personalized transactions compared to sales without personalization.

The depth of discounts for the same time periods dropped 1%. Combining all the measurements, the index says the health of e-commerce in March rose 15.3% compared with March 2010.

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 March 2011 and March 2010. According to the company, 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.

Cell will speak at the Internet Retailer Conference and Exhibition 2011 in a session entitled “Are retailers giving cross-channel customers what they want?

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