Retailers shift their ad spending from TV, radio and print ads to digital ads.
The year-over-year increase includes sales from the e-retailer’s recently acquired EZ Prints unit.
CafePress Inc., an online-only retailer that sells customized products such as T-shirts, coffee mugs and stationery, closed the first quarter of 2013 with big year-over-year gains in sales and total orders, but a decline in average order value. The quarterly results include revenue from the EZ Prints unit, which CafePress acquired last October for $500 million.
For the quarter ending March 31 CafePress.com, No. 110 in the 2013 edition of the Internet Retailer Top 500 Guide, reported:
- Web sales increased 31.6% to $52.5 million, from $39.9 million in Q1 2012.
- Net loss was $4.0 million, versus a loss of $544,000 in Q1 2012. Higher operational costs triggered much of the loss.
- Spending on technology and development increased 73.3% to $5.2 million from $3.0 million.
- Spending on sales and marketing increased 40.2% to $14.3 million from $10.2 million.
- The average order value was $35, compared with $48 a year ago. CafePress attributes the decrease to the smaller order sizes coming from EZ Prints’ sales to professional photographers and other businesses. Excluding EZ Prints, the average order size during the first quarter was $53, up 10.4% from a year ago. A spokeswoman says the lower average order size at EZPrints was because of its focus on relatively low-cost photo gifts, which usually have average order sizes of under $10. She adds that the retailer expects to increase average order sizes as it sells more higher-ticket CafePress items to its EZPrint customers.
- The number of orders grew year over year 66.9% to 1.4 million from 839,000, including EZ Prints orders.
“Looking ahead, we intend to drive growth by exposing more consumers to our wealth of customizable on-demand products via search, social and mobile channels—not only on the CafePress family of brands but by enabling customization wherever e-commerce occurs,” says Bob Marino, CafePress CEO. The e-retailer is generating new revenue streams by providing customization services to other companies. CafePress recently signed agreements to develop shops for Marvel Entertainment LLC and Paramount Pictures. Some forthcoming shops will be tied to those film studios(Amazon gets into the movie business and upcoming films like “Iron Man 3” and “World War Z.”
CafePress also raised its full-year revenue guidance, noting the seasonality of its new acquisitions and timing of corporate programs are expected to deliver higher sales in the fourth quarter. It says it now expects net revenue for fiscal 2013 to be in the range of $248 million to $261 million, reflecting a 13.9% to 19.8% increase over 2012 sales of $217.8 million.