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-------------------------------------------------------------- This story was printed from ZDNet Australia. --------------------------------------------------------------
E-tail Xmas a 'quiet success'

By Byron Kaye, ZDNet News
December 28, 2000
URL: http://www.zdnet.com.au/news/business/soa/E-tail-Xmas-a-quiet-success-/0,139023166,120107915,00.htm


Three days after the Christmas crunch, things are looking good for the Yuletide 2000 e-tail report card.

Sales figures fell short of forecasts, but, all in all, e-tail Christmas 2000 in Australia was a quieter, more conservative, and smoother-sailing affair than last year's pandemonium, according to www.consult principal analyst Ramin Mazbani.

A study conducted by the analyst firm on Australian e-tail during Christmas 2000 found that Internet merchants pulled the reigns on fulfillment capability promises, and shoppers got their gift orders in early to ensure goods were delivered on time.

-The e-tailers didn't make promises they couldn't deliver on," Mazbani said. -This year, everyone decided not to be as aggressive."

The www.consult study found that the majority of the country's online shoppers placed gift orders before December 1, with almost all remaining orders placed before December 15.

E-tailers noticed a slump in gift order-placement in the final weeks before Christmas, and industry observers who predicted a last minute pickup in sales were disappointed.

-There was no last minute rush," Mazbani said.

The study found that 1.1 million Australians - more than five percent of the population - shopped for Christmas gifts over the Web in 2000. The average online shopper spent AU$300 and blew 30 percent of their Christmas gift-buying budget online. Around 80 percent of orders were placed through Australian-run Web sites, the study found.

Nevertheless, online Christmas sales in Australia struggled to pip the AU$300 million mark, falling some AU$200 million shy of some analyst predictions.

Mazbani said the surprise gift hit of the season was the DVD player, which sprung from almost nowhere on the e-tail tree to claim the number three spot. Book sales clung uneasily to their usual residence at the number one spot, he said.

As far as the Web merchants went, the -big winners" of the season were newly acquired and CEO-transplanted dstore, as well as the Internet arm of offline retail giant Coles Myer.

US online bookstore Amazon saw almost no growth in Australian sales since Christmas last year, despite the popularity of online book purchasing and a recently forged relationship with Fairfax online arm f2.

-Amazon really failed to make an impact on new Internet users," Mazbani said.

-Mid-level" pick up arrangements, such as that between Melbourne etailer Wishlist.com.au and service station franchise BP, were used in less than one percent of orders.

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