On-Line Shopping Continues To Increase Rapidly

 

The Wall Street Journal  

April 7, 2005

E-COMMERCE/MEDIA

Nielsen Releases Online Retail Survey

By MYLENE MANGALINDAN
Staff Reporter of THE WALL STREET JOURNAL
April 7, 2005

Catalog, television and Internet-only retailers see more shoppers turn into buyers on their Web sites than the Internet stores of retailers whose primary source of revenue is a physical store, according to a new study by market research firm Nielsen//NetRatings Inc.

A study during February showed that QVC showed the highest "conversion rate," or ability to turn shoppers into buyers, among the 120 online retailers that Nielsen//NetRatings surveyed. TV-based retailer QVC topped the list with a 16.3% conversion rate, followed by Lands End with 14.8%, and sportsmansguide.com, which had 13.5%.

Some of this trend can be attributed to the loyal customers of these retailers and their conditioning to buying remotely, said Heather Dougherty, senior retail analyst at Nielsen//NetRatings, a unit of New York-based NetRatings Inc.

Some of the top 10 retailers with the highest conversion rates showed strong repeat buyers among their customers, the study found. Customers of Internet auctioneer eBay Inc., which ranked eighth, made an average of 2.9 purchases in February while customers of Amazon.com Inc., which ranked sixth, made an average of 1.4 purchases. QVC customers made an average of 1.5 purchases.

Write to Mylene Mangalindan at mylene.mangalindan@wsj.com1

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