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US government reports e-commerce rise 
Thursday, November 29 2001
by Matthew Clark


According to the United States Census Bureau, US e-commerce retail sales climbed
8.3 percent from the same time a year earlier to reach almost USD7.5 billion. 

The Census Bureau, an agency within the Department of Commerce that has been
tracking data on the people and the economy of the United states since 1790, said
e-commerce sales in the third quarter of 2001 were 0.9 percent of total retail
sales in the US. Total retail sales hit USD787 billion. The third quarter
e-commerce figures, not adjusted for seasonal, holiday, and trading-day
differences, were up 0.2 percent from the previous quarter, a notable figure
considering that total retail sales were down 2.6 percent in the period. 



Furthermore, the Q3 2001 figures are the third highest since the US government
began keeping records on e-commerce in 1999. The highest figure came in the
fourth quarter of 2000 when e-commerce sales in the US reached USD8.88 billion
representing 1.1 percent of total retail sales. The second highest figures were
in the next quarter, or the first quarter of 2001, when retail sales reached
almost 7.6 billion. 



Although the new statistics demonstrate that e-commerce only remains a marginal
portion of total retail activity in the world's largest economy, they do show
that e-commerce sales, both as a portion of total retail sales and as a
standalone figure, are on the rise. In fact Wednesday's e-commerce statistics
from the Census Department show a rise of around 40 percent in terms of total
e-commerce retail sales since the fourth quarter of 1999 (USD5.26 billion to
USD7.5 billion respectively). 



The figures also demonstrate the relative strength of the sector in an economy
that that is now said to be receding. On Monday the National Bureau of Economic
Research announced that the US officially entered a recession in the second
quarter of 2001. But in that period e-commerce retail sales climbed at a faster
rate than total retail sales. 



While the Census Bureau does not forecast expectations for the upcoming quarters,
research companies such as Gartner have said that e-shopping sales will hit
USD11.86 billion in North America this holiday season and more than USD25 billion
worldwide. According to Gartner, last year e-commerce holiday sales hit USD9.1
billion, in line with the figures given by the Census Bureau. 



The GartnerG2 survey of 16,449 US respondents showed that 80.5 percent said they
are inclined to shop at the same rate on-line this year, 13.6 percent said they
will spend less on-line this holiday season and six percent said they will spend
more. 



Growth in Web users has been paralleled by growth in the number of e-tailers. In
Europe there has been a rapid increase in brick-and-click retailers coming
on-line and improving their proposition in 2001, Gartner said. "E-tailers
continue to improve their Web site functionality by offering stock checking,
order tracking and keeping their customers informed by e-mail," said Gill
Mander, business analyst for GartnerG2 Europe. "More flexible delivery times
and new delivery methods are also encouraging customers to buy on-line."