Online Shopping Revenues Drop in May

29 June 2001

E-commerce revenues stood at $3.9 billion in May, down 9% from the $4.3bn generated the month before, according to Forrester Research and Greenfield Online.

Web consumers’ average online expenditure also fell (from $273 per person to $265), while revenue from big-ticket items suffered a decline from $2.64bn to $2.35bn.

Much of the decline was due to a fall in online travel revenue – airline tickets made $698 million last month (down from April’s $776m), while hotel reservations declined from $512m to $367m.

There were also month-on-month rises in online revenue in the consumer electronics, sporting gear, flowers and videos categories.

However, Forrester’s James McQuivey insisted that May’s decline need not indicate a slump: “The ‘slump’ could be seasonal, it could be the economy, and it could not be a slump at all. We’ll have to stay tuned to see what June does.”

News Source: AMA Marketing News (USA)