BEIJING, November 2 (Xinhua) -- According to foreign media reports, market research company comScore said on Monday that the total scale of the U.S. online consumer market in the third quarter increased by 9% year-on-year, reaching $32.1 billion. comScore stated that under the backdrop of a sluggish U.S. economy, this market has achieved growth for four consecutive quarters. In contrast, online sales fell by 2% in the third quarter of 2009. comScore Chairman Gian Fulgoni referred to these figures as "a positive signal for the upcoming holiday shopping season," but warned that persistently high unemployment rates could suppress consumer spending.
In a press release, Fulgoni said: "Until there is a significant increase in economic-driven job opportunities, the lack of purchasing power among consumers will continue to hinder sales. Many consumers have indicated plans to reduce their gift expenditures during this holiday shopping season." In the third quarter, the best-selling items in the online consumption market were books and magazines, surpassing digital downloads, computers, and consumer electronics.
During the economic downturn, although online sales still account for a small proportion of the entire retail industry, their growth rate has exceeded that of physical stores. Last month, comScore forecasted that e-commerce spending could rise by 7% to 9% during the holiday shopping season if unemployment rates do not rise further. Meanwhile, the National Retail Federation estimated that retail sales excluding online sales would increase by 2.3% during the same period, reaching $447.1 billion.
Before the holiday shopping season arrives, online retail giants Amazon and eBay are already competing with websites of companies like Walmart for market share. Sales during the holiday shopping season can account for up to 40% of annual sales.
Mild growth in consumer spending implies more competition. comScore also found that in the third quarter, the top 25 largest online retailers captured 70% of the market share, and 41% of online transactions used free shipping as an incentive to attract customers.