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Online Sales of Computers and Consumer Electronics To Decline?

By Anna Johnson on June 30th, 2008

A report by eMarketer indicates that while retail e-commerce sales in the U.S. will increase by 14.3 percent over last year’s volume to reach $146 billion in 2008, online sales of computers and consumer electronics may fall.

U.S. sales of consumer electronics tend to peak in November-December, while sales of computers tend to peak in the July-August pre-school months. If sales during these peak seasons fall this year, that may indicate a downturn in these categories overall.

According to Nielsen Online, in November 2007, the average order size for consumer electronics hit an annual high of $135, settling to $132 in December. Meanwhile, in 2007, monthly online sales of computer hardware were $455 in July and $387 in August.

It will be interesting to see if reality bears out eMarketer’s predictions. Nevertheless, if you sell computers or consumer electronics and there is a decline in online spending on these items, the question is: how can you buck the trend and add such value to your products that people still come to you when they want to buy a computer, or an iPod, or a whatever?

Source: Nielsen Online, “MegaView Retail” as cited by Marketing Charts, January 7, 2008 quoted in “Consumer Electronics and E-Commerce”, eMarketer, June 16, 2008

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