Online retail sales are expected to increase 3% to $28.8 billion for this year's holiday season. The analysts at comScore include traditional retailers, like Macy's (M) in this estimate, but don't count auction sites like eBay (EBAY), travel or corporate sales. The estimate compares favorably against the National Retail Federation's forecast of a 1% year-over-year drop for all retail sales and exceeds the industry's most aggressive holiday season sales estimates of 2%.

Last year, online retail sales fell 3% for the holiday season, the first decline since the industry started keeping score in 2001. Even if we don't hit the 3% growth level this year, 2009 is still expected to be better than 2008, now that the economy has stabilized (at least relative to last year).

Continue reading Online sales to be darling of holiday season

Online sales to be darling of holiday season originally appeared on BloggingStocks on Sat, 28 Nov 2009 17:10:00 EST. Please see our terms for use of feeds.

After the closing bell on Thursday, internet retailer Amazon.com (NASDAQ: AMZN) will step into the earnings spotlight. Experts believe that Amazon will report third-quarter earnings of 33 cents per share with revenue of $5.03 billion. Amazon forecast third-quarter revenue of $4.75 billion to $5.25 billion. In last year's third quarter, Amazon earned 27 cents per share with revenue of $4.26 billion.

With the economy struggling, what should we expect from Amazon? Reportedly, ThinkEquity saw traffic data that implies Amazon's unique visitors rose 23% in the latest quarter. If this is the case, the retailer's sales should have received a bit of a push in the quarter, which could lead to higher earnings. In fact, the ThinkEquity analyst (Ed Weller) told the Associated Press that he expects Amazon to report earnings of 35 cents per share on revenue of $5.13 billion.

Continue reading Amazon.com earnings preview: Expectations too high for Q3?

Amazon.com earnings preview: Expectations too high for Q3? originally appeared on BloggingStocks on Thu, 22 Oct 2009 10:40:00 EST. Please see our terms for use of feeds.

If you thought Black Friday was just for brick-and-mortar retail, think again. The official start of the online shopping rush is the Monday after the Thanksgiving holiday (Cyber Monday is its name), but don't think that companies like Amazon (NASDAQ: AMZN) and Blue Nile (NASDAQ: NILE) are going to wait that long. They're in the game now. And they want your attention. More importantly, they want you to use the virtual shopping carts at their respective sites early and often. It's really crucial this year, because the economy stinks, and growth in spending isn't going to be great.

According to CNBC, Amazon's strategy is to use very low prices as a way of stopping competitors like eBay (NASDAQ: EBAY) dead in their electronic tracks. This Christmas season, retailers, whether online or not, may find themselves in a no-win situation. They have to lower prices to encourage people to shop. But quality growth in top-line sales is questionable. When managements see the bad news flow about the global recession, they become scared and want to become even more aggressive in terms of pricing. The strategy may work and it may not. It's a vicious circle. Don't get me wrong, the retail industry faces this problem every year at this time, but you have to agree that the current economic cycle is particularly noxious. It's times like these, however, when retailers should want to offer more than just a value proposition. They should want to offer a differentiated shopping experience, a better selection of items. They should strive to offer up a brand image that makes you want to hit their inventories first. They need to step away from trying to undercut all their competitors and instead figure out how to stock the right merchandise in the right amounts. And when it comes to a business like Amazon, I think there's great opportunity to go beyond low-pricing strategies. Quite frankly, I don't care whether Amazon has the lowest prices or not. I find it easier to do some of my holiday shopping on the site. It saves me time during this busy season, I trust the security of the platform, and I know that the supply chain is efficient and reliable. And I definitely think of Amazon first when looking to do online shopping because of its valuable brand equity.

Continue reading Will Amazon win with its pricing strategy?

Will Amazon win with its pricing strategy? originally appeared on BloggingStocks on Sat, 29 Nov 2008 16:40:00 EST. Please see our terms for use of feeds.

Continue reading Blue Nile just sparkles with opportunity

Blue Nile just sparkles with opportunity originally appeared on BloggingStocks on Fri, 28 Dec 2007 12:53:00 EST. Please see our terms for use of feeds.