Holiday Season Traffic to AOL's Shopping Channel More Than Three Times Heavier Than Last Year
December 16, 1998 08:31 AM
DULLES, Va.--(BUSINESS WIRE)--Dec. 16, 1998-- AOL Shoppers Spending Nearly 50% More on Wide Array of Consumer Goods, With Toys and Apparel the Top Categories
750,000 AOL Members Become First-Time Buyers Over Past Two Weeks
With more than a week of around-the-clock shopping left until Christmas, America Online, the industry leader in e-commerce, Wednesday reported a significant climb in traffic to the AOL Shopping Channel over last year, with a big boost from first-time online shoppers and record sales among its retail partners. Even before this year's expected last-minute rush, AOL's Shopping Channel is attracting three-and-a-half times more shoppers than last year, as online shopping increasingly becomes an important retail option for consumers. Ninety-five percent of AOL shoppers find online shopping easier and more convenient because the cyberstores are always open, according to new research produced by The Internet Research Group for America Online. The most popular time to shop on AOL is the "prime-time" usage hours of 8:00 p.m. to 10:00 p.m., with nearly one-third of Shopping Channel traffic occurring when "brick and mortar" stores are closed between 10 p.m. and 10 a.m.
AOL's Most Popular Categories for 1998 -- Toys Moves to No. 1, Apparel Still Strong Mainstream consumer products -- including toys, apparel, books and music -- are the most popular retail categories in the AOL Shopping Channel. This year, toys have overtaken apparel as the greatest driver of traffic to date. The most popular categories on AOL this year are:
1998 1. Toys/Kids/Babies 2. Apparel 3. Books/Music 4. Electronics/Video 5. Flowers/Candy/Cards 6. Department Stores
Bob Pittman, President and Chief Operating Officer for America Online, Inc., said: "This is a breakthrough holiday season for shopping on AOL with our members flocking to the AOL Shopping Channel in record numbers. More and more of these mass market consumers are discovering the tremendous convenience, ease-of-use and value of shopping with us and a stellar roster of commerce partners. "And we believe that this sharp climb in online holiday shopping will drive record traffic to the AOL Shoping Channel during the coming year." Research by the Internet Research Group, an independent firm based in Radnor, PA, shows that a growing number of AOL's mass market consumers are adopting online shopping as an integral part of their buying behavior this holiday season: -- The number of first time buyers on AOL continues to increase dramatically -- Just two weeks into the holiday shopping season, AOL has motivated 750,000 more members to make their first purchase online; -- AOL holiday shoppers are making frequent online purchases and spending more per purchase than last year -- The average AOL holiday shopper is purchasing two items online every week, and is spending 48%(a) more on each purchase for an average of $54.00; -- AOL members are purchasing a wide array of gifts -- Among this holiday season's AOL shoppers, 63% are buying for their kids, 60% for their spouses, 54% for their parents and friends, 35% for themselves, and 10% for their pets; and -- AOL members going online to shop after pricing products and services at stores over the weekend, the research suggests -- the heaviest buying days on AOL this holiday season are Monday and Tuesday. Mr. Pittman added: "Most exciting for us is that 750,000 more AOL members have gone from 'window-shoppers' to first-time online buyers during this holiday season. Our veteran online shoppers are buying more frequently and spending on average more per purchase. Together with our retail partners, AOL is taking the convenience and value of online shopping to a whole new level of success." Wendy Brown, Vice President of Electronic Commerce for America Online, Inc., said: "This holiday season tells us that AOL members are shopping for the same wide array of consumer goods and services that they do in the offline world for everybody on their gift list. "We are especially encouraged to see AOL members taking advantage of the around-the-clock convenience of shopping online. And, with just over a week of holiday shopping to go, we anticipate that the biggest shopping days are ahead of us." The AOL shopping departments experiencing the biggest increases in shopping traffic over last year are:
-- Toys, Kids, Babies +300% -- Flowers, Candy, Cards +275% -- Electronics & Video +230% -- Apparel +210%
AOL Merchants Report Banner Holiday Sales
AOL merchants are seeing dramatic increases in their online sales this holiday season. According to Phil Polishook, Vice President of Marketing for eToys, the online toy store "had 20 times the business from the AOL Shopping Channel this holiday season versus last year." "Eddie Bauer's site on AOL has experienced incredible incremental growth this year." said Sally MacKenzie of Eddie Bauer Online. "Holiday sales thus far have been terrific. In fact, we beat our December '97 sales number in October '98!" Cliff Sharples, CEO of Garden.com, said, "Sales from AOL are up 500% over last year, and are increasing as Christmas approaches." According to Susan Daniher, Vice President of Marketing for DVD EXPRESS, the company's sales volume "has increased ten-fold since last December, and has doubled since the beginning of our partnership with AOL in September. This holiday season, the company is seeing a new sales record every day." "Since early November, weekly sales at Bluefly.com, a leading online retailer for brand name apparel, have increased by approximately 700%," said Jonathan Morris, Executive Vice President of Bluefly, Inc. "In that same period, the total number of registered users on Bluefly.com grew approximately 300% to more than 19,000." He added: "AOL customers are clearly comfortable shopping online and have contributed greatly to Bluefly's holiday success. It's clear from our sales results that many AOL members are opting to buy online rather than wait in lines this holiday season." "This November, Omaha Steaks Internet sales more than doubled over the same month last year," said Stephanie Healy, Interactive Sales Manager for Omaha Steaks. "AOL does a wonderful job building community and boosting confidence of AOL shoppers. It also does an excellent job of facilitating shopping by directing them to stores such as Omaha Steaks."
About AOL Shopping With more than 14 million members on AOL -- and millions more other Internet users on AOL.COM -- America Online is the undisputed leader in the online marketplace, bringing together the best roster of name-brand retail partners with the largest audience of shoppers anywhere in cyberspace. More people use America Online to shop than any other destination in cyberspace because, with more than 110 of the best brand name partners offering the largest variety of popular consumer products, AOL makes it easy and convenient for consumers to locate and buy the products they are looking for. With the Shopping Channel on AOL and AOL.COM, consumers need only visit one shopping site - rather than multiple stores - to find what they are interested in buying. All of this -- brand name merchants, one-stop-shopping, and great new features and programming -- makes AOL the most popular place to browse and e-shop this holiday season, and throughout the year. About America Online America Online, Inc., based in Dulles, Virginia, is the world's leader in branded interactive services and content. America Online, Inc. operates two worldwide Internet services: America Online, with more than 14 million members; and CompuServe, with approximately 2 million members. America Online, Inc. also operates AOL Studios, a leading builder of Internet brands for new market segments. Other branded Internet services operated by America Online, Inc. include AOL.COM, the world's most accessed Web site from home; Digital City, Inc., the No. 1 branded local content network and community guide on AOL and the Internet; AOL NetFind, AOL's comprehensive guide to the Internet; AOL Instant Messenger, an instant messaging tool available on both AOL and the Internet; and ICQ, an instant communication and chat technology on the Internet.
(a) based on Ascolese Associates research, January 1998
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