Online sales jumped 160% in the third quarter over the same period last year, according to new research from Shop.org, a Silver Spring, Md.-based association of online retailers, and the Boston Consulting Group, a business strategy consultancy. In addition, online retailers' revenue will hit $9 billion during the 1999 holiday season, Nov. 1 through Dec. 31, the survey of 57 online retailers found. The survey also said online sales growth will continue to outpace online retailers' marketing efforts in the fourth quarter. Online retailers will spend up to 40% of their total ad budgets over the holiday season, according to the survey. Marketing spending in the third quarter jumped 120% over the third quarter last year; Online retailers are expected to spend at least 120% more on advertising in this year's fourth quarter than last year. The groups continue to project that online retailers, not including financial services sites, will have sales totaling $36 billion in 1999.
Copyright November 1999, Crain Communications Inc.