This ticked-off cat isn't too thrilled about the snow, but plenty of online retailers are.
(Credit: Caroline McCarthy/CNET)A blizzard that pelted much of the Eastern Seaboard with over a foot of snow also led to a spike in last-minute online holiday shopping last weekend, traffic firm ComScore said Tuesday.
Online shopping continues to eat up a bigger chunk of holiday retail each year, but this season, with roads snowbound and temperatures well below freezing in some of the most populous areas of the country at the tail end of the holiday season, it was even more than usual. (Several cities in the mid-Atlantic, like Philadelphia and Washington, D.C., pulled in more snow in a single snowfall than they typically do in an entire season.) For the weekend of December 19-20, U.S. traffic to non-travel retail sites was up 13 percent from the equivalent weekend last year--and on Tuesday, December 15, right when the storms started hitting weather forecasts, it was up 21 percent.
That Tuesday marked the biggest online spending day in history, ComScore says.
"The major snowstorms hitting the eastern seaboard over the weekend appear to have given holiday e-commerce an additional boost, resulting in the heaviest online spending week on record at $4.8 billion," ComScore chair Gian Fulgoni said in a release. "Consumers have clearly continued to spend online later into the season this year, with several very strong spending days in the most recent week including the heaviest online spending day in history--Tuesday, December 15, with $913 million. Retailers have been very aggressive with late season promotions while informing consumers that they could still get their purchases shipped in time for Christmas, and these tactics seem to be paying off."
A survey from Coremetrics said that sales for "Cyber Monday," the Monday after Thanksgiving and typically a day for big online deals, showed healthy gains this year.
A snapshot of holiday sales.
(Credit: ComScore)This year's online holiday-shopping season has topped $19.9 billion so far--a 3 percent jump over the same period in 2008, according to ComScore.
Online sales were bolstered last week when consumers spent more than $800 million on two separate days, ComScore said. On Thursday, for example, consumers coughed up $852 million.
Monday has the potential to produce the best day of this year's holiday-shopping season, which started November 1 in ComScore's stats.
ComScore Chairman Gian Fulgoni said that Monday "represents our best opportunity to finally surpass that elusive $900 million spending threshold. The early part of this upcoming week should bring us the heaviest online spending days of the season before consumers refocus their attention on brick-and-mortar retail locations to finish up their holiday shopping."
Considering that 2008 wasn't the great year for holiday sales, online or otherwise, it is also worth looking back to 2007. From November 1 through December 14 in 2007, ComScore reported, consumers spent $22.67 billion online.
ComScore's 2009 figures included up through Friday, December 11. It will be interesting to see whether the extra three days could push this year's online sales figures anywhere near 2007's level.
The new report is the latest from the e-commerce-tracking company showing healthier sales than last year. A recent report cited strong Cyber Monday sales figures.
Updated at 7:15 a.m. PDT with 2007 online sales figures.
Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.
The 2009 holiday season thus far is revealing much stronger online sales figures than what was witnessed in 2008, market-research firm ComScore announced late Wednesday.
According to the company, which has monitored spending for the first 30 days of the November-December shopping season, sales are up 3 percent to $12.26 billion, compared to the same period in 2008. Cyber Monday sales hit $887 million in online spending, tallying a 5 percent gain over the same day last year. That amount also matched "the biggest spending day on record, December 9, 2008."
"We've seen an encouraging start to the online holiday shopping season and it would appear that retailers' aggressive and early marketing efforts have so far succeeded in persuading consumers to open their wallets online," ComScore chairman Gian Fulgoni said in a statement. "Thanksgiving Day and Black Friday were atypically strong online sales days this year, and Cyber Monday has continued that trend by outperforming the season-to-date average growth rate and matching last year's record day of $887 million in online spending."
The good news doesn't stop there. Cyber Monday also saw an increase in the number of buyers, ComScore found. The total number of online buyers grew 6 percent to 8.7 million people. That said, the average amount each person spent dropped 2 percent to $102.19.
True to the day's origins, the majority of sales originated from work computers. The company found that 52.7 percent of all purchases were completed in the office. Just 41.6 percent of shoppers picked up items from home, ComScore said.
ComScore wasn't the only company reporting strong numbers this week. eBay said that Cyber Monday transactions outpaced Black Friday's by a whopping 35 percent. More than 2.4 million transactions were completed on Black Friday and Cyber Monday, eBay said. The site even has a heat-map graphic that shows how the transactions pored in over the course of those days.
ComScore and eBay's data follows another strong report from marketing-optimization company Coremetrics, which said earlier this week that sales were up 13.7 percent at some online retailers that it received data from.
eBay on Sunday confirmed that a "technical issue" had caused search queries on the auction site to be messed up over the weekend, resulting in limited or no search results. The company says that it's being cautious, though, and is holding back on some advanced search features until the issue is fully solved.
"We are happy to report that critical search functionality was restored overnight on Saturday and we are seeing normal activity levels today," a post on the company's eBay Ink blog read Sunday. "As part of our effort to restore critical search functionality as quickly as possible for sellers and for buyers, we have kept some secondary search features temporarily offline. This includes refining search by certain item specifics, such as color or clothing size, and having Store Inventory Format results included in the main search results."
In a statement, eBay also said the technical issue was caused by "a surge in live listings as sellers ramp up for the holiday season. eBay currently has more than 200 million live listings, 33 percent more than at this time a year ago."
Some eBay members still weren't satisfied with the explanation. "I had a one day auction ending today, (and) no one was obviously able to bid on it because they couldn't search for it," one commenter said on the eBay Ink blog. "Will I get a credit for this?"
"eBay should credit all sellers with active listings during this time," another said. "These issues have cost sellers many bids and sales. Once again eBay is screwing sellers."
Much like Twitter's today, outages at eBay were rather prominent in the company's early days. They're not too frequent anymore. But this one came at a time when there are some sentiments of malaise among eBay sellers, some of whom use the auction site to make a living, and when it also faces increased competition in the e-commerce sector.
An analyst release from JP Morgan Chase said that it did not anticipate the outage would have an effect on eBay's fourth-quarter earnings. But, it contained a warning: "Although we recognize it is virtually impossible for a site of this complexity to not encounter occasional issues," the report from analyst Imran Khan read, "we continue to believe that eBay needs to make greater investments in the robustness and functionality of its site in order to remain competitive within the e-commerce space."
Amazon's acquisition of shoes-and-more retailer Zappos is complete, the e-commerce giant said in a release Monday. The company in July had announced its intent to make the purchase, for about $850 million in cash and stock.
Zappos, which made a name for itself based on outside-the-box customer service principles, will stay independent from the Amazon.com brand and will continue to operate out of its Las Vegas headquarters.
Numbers released by J.P. Morgan Research in conjunction with the acquisition announcement predict that Zappos will post moderate, single-digit growth for the 2009 fiscal year after raking in $635 million in revenues last year.
With micropayments and transaction platforms a buzzworthy sector of the Web right now, it's no surprise that Google would want to get in on the game.
But Mountain View's pitch is a little bit different: the payment platform it plans to build, according to Harvard's Nieman Journalism Lab, is geared toward newspapers that want to charge for digital content.
Google's plans are detailed in a document the company sent to the Newspaper Association for America. The document, a response to a query from the association, also requested more information pertaining to paid-content models.
"While currently in the early planning stages, micropayments will be a payment vehicle available to both Google and non-Google properties within the next year," explained the document (PDF) posted Wednesday by Nieman Lab. "The idea is to allow viable payments of a penny to several dollars by aggregating purchases across merchants and over time. Google will mitigate the risk of non-payment by assigning credit limits based on past purchasing behavior and having credit card instruments on file for those with higher credit limits and using our proprietary risk engines to track abuse or fraud. Merchant integration will be extremely simple."
This is interesting, as Nieman Lab points out, because Google's plan aggregates payments into a bundle for processing, something that could potentially quell publisher concerns about transaction fees. The plan is very preliminary, obviously.
"The Newspaper Association of America asked Google to submit some ideas for how its members could use technology to generate more revenue from their digital content, and we shared some of those ideas in this proposal," according to a statement Wednesday from Google's PR department to Nieman Lab. "It's consistent with Google's effort to help publishers reach bigger audiences, better engage their readers and make more money."
Google's Checkout product, the online transaction service that would likely be the base for a micropayment system, has been around for a few years now. But it hasn't made a huge dent in far bigger competitor PayPal, and it's also been experiencing some big problems, as my colleague Tom Krazit reported Thursday.
It ought to be pointed out, of course, that Google has been the target of harsh criticism from the newspaper industry (as well as other sectors of the publishing business) for profiting from third-party content. Wall Street Journal editor Robert Thomson went so far as to call online news aggregators (not mentioning Google by name) "parasites or tech tapeworms."
Meanwhile, the payment platform that's been getting the most scrutiny and interest in the tech press these days has been, of course, Facebook's "credits" system. But while Facebook's pitch thus far has been toward nonprofits looking for small donations and game developers selling virtual goods, it's still impossible to discount the fact that Google's micropayments move could be aimed at staking a claim in the same territory.
Note: This post was expanded at 7:09 a.m. PDT. And on Friday morning, the Associated Press reported that Google was one of several tech companies, including IBM, Microsoft, and Oracle--that responded to the Newspaper Association of America request, though the AP story offered no details on those other companies' responses.
PayPal suffered a global outage and slow performance Monday, but eBay said its online payment system is mostly back in working order.
"About an hour ago, PayPal started experiencing site issues that affected the ability to send and receive money. We have all hands on deck to get this fixed," said PayPal spokesman Anuj Nayar in a blog post about noon PDT. "We're really sorry for the inconvenience."
An update at 12:40 p.m. said the site was working again for most users.
Nayar said in an interview the outage was global and the worst of the outage lasted about an hour total, though the site wasn't fully recovered just before 2 p.m. PDT.
$2,000 per second in transactions
The outage could be costly for those who rely on PayPal to handle e-commerce transactions. PayPal says about $2,000 in payments per second flows through the system, meaning that a one-hour outage would cut out about $7.2 million in commerce.
Nayar declined to comment immediately about whether sellers would be compensated in any way or how eBay handled such decisions in the past.
As a key driver of growth for eBay, PayPal is becoming more important at the online commerce and auction site.
"PayPal is a business that will be bigger than eBay," eBay Chief Executive John Donahoe said in July. And through a developer release in July of a new PayPal payment system, eBay wants to refashion the service to enable a new generation of online commerce.
PayPal's developer site said the outage hit not just its Web page, but also through PayPal's application programming interface (API), which lets applications use the service without having to go through the Web site. It first noted the problem at 10:41 a.m. PDT.
Updated with more details at 2:04 p.m. PDT.
PASADENA, Calif.--PayPal is just over a third of eBay's revenue at the moment, but the online payment service will ultimately be bigger than the company's flagship e-commerce site, its chief executive said Thursday.
"PayPal is a business that will be bigger than eBay," CEO John Donahoe said in a talk at the Fortune Brainstorm: Tech conference here. However, he said that shift will take four to six years.
eBay CEO John Donahoe speaks at Fortune's Brainstorm: Tech conference on Thursday
(Credit: Ina Fried/CNET)Donahoe's comments came just as the company announced that it is opening up its PayPal platform to third-party developers. "There is this opportunity for an explosion of growth."
Among the uses, Donahoe said we are not that far off from the day where a restaurant beams a bill to your mobile device and you pay via PayPal.
Asked about Facebook's long-rumored payment service, Donahoe noted that online payments require a company to be part financial services outfit and part Internet concern. Those that have been one, but not the other, have failed, he said.
"People will find a much better solution building on top of the PayPal platform," he said.
Donahoe, who has been CEO about 15 months, said the company is a leader that is adjusting to shifts in the market. "We're making the tough changes we need to make," he said. "We need to evolve on an auctions site to an e-commerce site."
There is plenty of room for e-commerce to grow, Donahoe said, noting that only 5 percent of sales are online as compared to in stores. That could eventually grow fourfold, he said. "What portion of everything you buy will you ultimately buy online?" Donahoe said.
He said eBay has already come a long way. "We still get referred to as an online auctioneer, but we have moved way beyond that.
Right now, eBay gets about half its money from eBay.com, with half of that auction-based sales and half from fixed-price sales.
As for the core auction business, eBay plans to announce a number of changes next week. Among those, Donahoe said that the company will expand the "eBay Bucks" loyalty program it has been piloting as well as offering telephone support to more buyers.
Given that PayPal may eventually eclipse eBay.com in sales, moderator Adam Lashinsky asked if the company should change its name.
"That's the least thing I worry about," Donahoe said. "We'll probably hire some big fancy consultant who will give us some strange name," he quipped.
Corrected at 2:31 p.m. PDT: The last name of eBay's CEO was misspelled. His name is John Donahoe.
Amazon.com has filed for a number of patents that hint at ad-supported books for its Kindle e-reader--more specifically, a free or discounted ad-supported e-book for customers who buy the physical version.
Amazon Technologies, a subsidiary of Amazon, filed for a patent ("Method and system for access to electronic version of a physical work based on user ownership of the physical work") in December 2006. It was approved last month and makes it possible for buyers of a physical book to have an e-book bundled with it.
But two additional patents, filed a year later by Amazon employees (and not yet approved), are the more interesting ones: these, according to MediaPost, "clearly note that Amazon would insert advertisements throughout the e-books, from the beginning to the end, between chapters or following every 10 pages, as well as in the margins."
It looks like the story first surfaced on Slashdot last Friday.
Presumably, this could be a way to guide potential Kindle customers through the transition--which some find daunting--from consuming primarily physical books to digital ones, subsidizing the price of either or both of them in the process.
Ad money would be an additional revenue stream for Amazon too.
This post was updated at 10:14 a.m. PT.
Amazon CEO Jeff Bezos shows off the Kindle DX
(Credit: Sarah Tew/CNET News)NEW YORK--Amazon CEO Jeff Bezos unveiled the much-anticipated large-screen Kindle e-reader in a lecture hall Wednesday at the downtown Pace University. Called the Kindle DX, the new device is geared toward readers of personal and professional documents, newspapers, and magazines--and textbooks, a potentially huge target market.
The debut of the bigger Kindle wasn't exactly a secret: rumors of a larger-screen Kindle had been around for quite some time, and concrete reports began to surface earlier this week.
Amazon's Kindle DX
(Credit: Amazon)According to Amazon's Kindle DX page, the device has the following:
• A 9.7-inch display with 16 shades of gray. (The standard Kindle has a 6-inch display.)
• Capacity to hold up to 3,500 books, periodicals, and documents.
• An auto-rotating screen to show either portrait or landscape views.
• A built-in PDF reader.
• 3G wireless network support with no monthly fees or annual contracts.
• Battery capacity to "read for days without charging."
• Text-to-speech abilities to read publications aloud.
Several of those features are shared with the current Kindle 2, but several are unique to the Kindle DX: the native PDF reader that doesn't require the files to be converted, the rotating display, the 3,500-publication capacity compared to 1,500 for the Kindle 2, and of course the larger screen.
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