U.S. Retail E-Commerce Up 23 Percent in Q3, on Pace to Reach $200B in ‘07

Retail e-commerce (i.e., non-travel) in the third quarter of 2007 increased 23 percent from the year-earlier quarter, surpassing $28.4 billion, while online travel e-commerce grew 11 percent from the year-ago quarter, reaching nearly $20.2 billion, according to comScore, MarketingCharts reports.

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Tables that are referenced in this article:

1. Third-Quarter U.S. E-Commerce Spending
2. Year-to-Date U.S. E-Commerce Spending
3. Top Gaining Online Retail Categories

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“Online retail spending continues to grow at rates in excess of 20 percent year-over-year, which suggests that the market is still far from maturity,” said comScore Chairman Gian Fulgoni. “Even online travel commerce, which is a more developed market, continues to experience double-digit gains.” (See table: Third-Quarter U.S. E-Commerce Spending.)During the first nine months of 2007, total e-commerce spending surpassed $143 billion, putting it on pace to reach $200 billion by the end of the year, comScore said.Retail e-commerce accounted for nearly $84 billion - or 58 percent of the total - while online travel spending came in just shy of $60 billion. (See table: Year-to-Date U.S. E-Commerce Spending.)

Also according to comScore:

• Videogames, consoles & accessories remains the hottest retail category in Q3, nearly tripling its online sales from last year on the strength of Nintendo Wii and Sony PlayStation 3-related sales. (See table: Top Gaining Online Retail Categories.)
• Consumer electronics was the second-fastest growing category in Q3 (up 58 percent), with high-definition and flat screen TVs helping move the needle.
• The toys & hobbies category ranked as the third-fastest-growing category (up 57 percent) during the quarter.

“Despite the negative publicity of toy recalls, the third quarter saw robust growth for online toy sales,” said Fulgoni. “Given some of the uncertainty surrounding the holiday season, it’s possible that consumers were responding to fears of toy shortages and making their purchases early. In addition, it could be that consumers were replacing recalled toys with other new toys.”