Thirty-two Internet companies closed their doors in July, nearly half the level seen in the previous three months, according to Internet research and services company Webmergers.
"This is startling. We thought the number of shutdowns hit a plateau in June, but we were careful not to say we thought June was at its peak, said Tim Miller, president of Webmergers.
"This month's decline is so dramatic," he said. "There may be some seasonality to the numbers, but it's hard to imagine companies would just delay shutting down because it's summer. Death takes no holidays."
Business-to-consumer e-commerce companies represented 26 percent of the 367 Internet company shutdowns since the start of the year. That is a smaller amount than the 43 percent ratio last year, when 225 companies closed shop.
Internet company closures are on track to far surpass last year's figures, and Miller said the jury is still out on whether July's drop means the worst is over. The figure for July had not been that low since September, when 22 Internet companies folded.
