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BizReport : Ecommerce : January 23, 2009

Demandware clients see 30% increase in revenue

Despite all of the doom and gloom predictions for the 2008 holiday season and indeed the predictions that etailers must brace for an overall down year through 2009 some etailers continue to see profits and traffic increases. According to a recent report from Demandware, an on-demand ecommerce platform, their client base saw a 30% increase in revenue during the 2008 holiday shopping season.

by Kristina Knight

Even more important, perhaps, is that the base also experienced 99% site uptime. Reports from Gomez indicated that the Top 50 Ecommerce sites saw site uptime at 96% (a 3% difference from Demandware). For specifics Demandware clients saw a 30% increase in revenue, 28% increase in total orders and a 1.5% increase in the average order value.

Why the difference?

"The ecommerce market [in Europe] continues to show comparatively stronger growth as more consumers shift their shopping online and retailers upgrade their sites with state-of-the-art functionality," said Julian Chu, director of client success, Demandware. "But Demandware's retailers in [Europe and the US] were able to drive year-on-year growth in total sales and order volume, and in many cases average order value as well. The latter was a particular challenge - heavy discounting during the season put pressure on average unit prices, but retailers' effective use of promotions and cross-selling helped to push basket sizes up in the other direction."

Demandware clients also reported more uptime during the busiest shopping days; consumers have reported that on those heavy shopping days many sites they visited were down or had other difficulties. Also, the clients could change holiday promotions on the fly as they saw what consumers were most interested in.

Tags: Demandware, ecommerce, holiday sales, online shopping

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