CHICAGO: The growth of US online retail spending fell to its lowest level in seven years during October, posting a year-on-year improvement of just 1% as the economic downturn impacts on consumers.
Online market research firm comScore reports that middle-to-lower earning families, defined as having an income of less than $50,000 (€39,620; £33,216) per year, are now said to be spending little or nothing via the web.
Households with an annual income of $50,000 to $100,000, which are responsible for 45% of online retail spending, increased their outlay by just 1% for the three months to the end of October.
Andrew Lipsman, marketing communications manager at comScore, says: "It's clear that consumers have less disposable income and as a result, ecommerce is going to suffer."
He is also pessimistic regarding future online retail growth levels, arguing: "I think it's safe to say we aren't going to see growth rates anywhere near to what we've seen in past years."Underscoring comScore's assessment of online retailing, equity and securities specialist Lazard Capital Markets has revised down Amazon's probable Q4 earnings from $6.6 billion (€5.2bn; £4.4bn) to $6.5 billion, as the online retail giant remains "in a period of high uncertainty with slowing growth and declining incremental margins".
Data sourced from Wall Street Journal; additional content by WARC staff