Retailers shift their ad spending from TV, radio and print ads to digital ads.
Year-to-date e-commerce revenue is up 26.1%.
A small increase in net loss was offset by bigger gains in sales, new customers and total orders for Vitacost.com Inc. in the second quarter.
For the quarter ended June 30, Vitacost.com, No. 86 in the 2012 Internet Retailer Top 500 reported:
- Sales increased year over year 21.2% to $79.9 million from $65.9 million.
- Net loss was $4.3 million compared with a net loss of $3 million in the second quarter of 2011.
- Total number of active customers increased 56% to 1.9 million from 1.2 million.
- Total number of new customers increased 106.4% to 324,000 from 157,000.
- The number of orders grew 36% year over year to 1.2 million from 866,000.
- Average order was $73.43 compared with $76.10 in the second quarter of 2011. The number excludes Amazon.
- Spending on fulfillment increased 52.9% to $7.8 million from $5.1 million.
- Spending on sales and marketing grew 53.8% to $8.0 million from $5.2 million.
- Spending on sales and administrative expenses increased 11.9% to $7.5 million from $6.7 million.
“During the second quarter, we continued to generate strong top-line results while significantly improving our bottom line performance,” says CEO Jeffrey Horowitz.
For the first two quarters:
- Sales increased year over year 26.1% to $163.5 million from $129.7 million.
- Net loss was $10.9 million compared with a net loss of $4.6 million in the first two quarters of 2011.
- Spending on fulfillment increased 62% to $16.2 million from $10.0 million.
- Spending on sales and marketing grew 64.4% to $17.1 million from $10.4 million
- Spending on sales and administrative expenses increased 11% to $15.7 million from $15.3 million in the first two quarters of 2011.