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August Internet Buying Rebounds from Summer Slowdown

Amazon.com, buy.com and barnesandnoble.com attract largest number of buyers among U.S. households, Drugstore sites exhibit strong sales

Reston, VA (Sep. 14, 1999) — U.S. consumer buying on Internet retail sites rebounded in August after a slight decline in July, according to PC Data Online, a leading Internet research firm specializing in web commerce measurement. PC Data Online's latest figures for web purchasing among U.S. households show that an average of 4.5 percent of visitors to the top 40 online retail sites purchased items in August, returning to June levels after dropping to 3.2 percent in July.

Leading online retailer amazon.com retained its #1 rank with 789,000 projected home-based buyers. Buy.com jumped to the #2 position with a projected 314,000 visitors completing purchases. In August, buyers accounted for 12.1 percent of the buy.com's home-based traffic, up from 6.7 percent in July, while overall traffic increased by more than 50 percent. Barnesandnoble.com ranked third with 289,000 projected buyers.

Drugstore sites had another strong showing in August, with planetrx.com, drugstore.com, and mothernature.com among the top 10 buying sites. More than one out of 10 visitors to these drugstore sites bought something during the month of August.

"Consumers are embracing the Internet as a way to buy products that don't require hands-on evaluation. We've seen this with the success of Internet book and CD sales, and it appears that the drugstore sites have tapped this same vein. In addition, consumers love a deal, and the steep discounts and coupons these sites have been offering to attract customers may have a lot to do with their recent popularity," said Internet research analyst Cameron Meierhoefer.

Internet retail sites are defined as web sites where visitors can actually purchase products. They include neither shopping domains that provide free downloads, product reviews, or purchasing incentives such as coupons, nor other types of e-commerce sites such as auction, travel reservation, or financial service sites.

PC Data Online estimates the purchase rate based on the number of unique home-based web users who visit a transaction-related page within each site. The information is gathered through a proprietary software tool that tracks "unique visitors" and "unique buyers" on each web site. Every visitor or buyer is counted only once, regardless of how many times the individual visits a site or buys from a site. This sample includes 67,000 home Internet users. The total universe of home Internet users is approximately 63,000,000, including AOL users, which PC Data Online began tracking in August 1999.

Aggregate Top 40 Web Retail Purchase Rate Among U.S. Home Web Users
June - August 1999

  Projected E-tail
Buyers (000)
E-tail Unique
Users (000)
Buy Rate (%)
August 1999 3,382 74,786 4.52%
July 1999 2,386 74,483 3.20%
June 1999 3,309 74,275 4.46%

Top 40 Web Retailers Among U.S. Home Web Users
August 1999

E-tailer Rank Average Time Spent
August July Site Projected
Buyers
(000)
Reach
(%)
Unique
Users
(000)
Buy
Rate
(%)
Buyer
(hh:mm)
Non-Buyer
(hh:mm)
1 1 amazon.com 789 17.6% 11,162 7.1% 0:53 0:12
2 9 buy.com 314 4.1% 2,586 12.1% 0:59 0:11
3 5 barnesandnoble.com 289 6.1% 3,871 7.5% 0:49 0:06
4 3 ticketmaster.com 269 3.4% 2,139 12.6% 0:33 0:08
5 2 planetrx.com 256 2.6% 1,655 15.5% 0:38 0:07
6 6 mothernature.com 241 3.0% 1,910 12.6% 0:32 0:06
7 15 drugstore.com 191 1.7% 1,082 17.6% 0:35 0:08
8 4 gateway.com 167 3.6% 2,248 7.4% 0:42 0:10
9 11 cdnow.com 95 8.5% 5,389 1.8% 1:22 0:20
10 14 smarterkids.com 93 2.7% 1,734 5.4% 0:30 0:03
11 13 chipshot.com 80 0.6% 382 21.0% 0:12 1:00
12 8 hallmark.com 80 1.0% 610 13.1% 0:31 0:31
13 16 egghead.com 73 2.6% 1,614 4.5% 0:34 0:08
14 19 yahoo.com 67 49.8% 31,497 0.2% 2:20 2:41
15 17 officemax.com 65 1.6% 1,030 6.3% 0:21 0:10
16 21 etoys.com 57 1.7% 1,101 5.2% 1:10 0:10
17 20 jcrew.com 52 1.7% 1,105 4.7% 0:41 0:04
18 22 spree.com 52 3.4% 2,155 2.4% 1:32 0:17
19 27 compaq.com 51 1.9% 1,227 4.2% 0:22 0:16
20 -- towerrecords.com 43 0.5% 290 15.0% 1:11 0:07

About PC Data

PC Data, headquartered in Reston, Virginia, was established in 1991 and is the leading provider of technology intelligence. The PC Data Online suite of services was introduced in 1999 to tack Internet usage, installed software usage, and to provide the means to conduct rapidly deployed surveys over the Internet.

Contact:

Cameron Meierhoefer
Internet Research Analyst
(703) 435-1025 ext. 162
cmeierhoefer@pcdata.com
http://www.pcdataonline.com

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