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e-Tailing Keeps On Sailing
e-Commerce sales appear to be continuing their slow upswing, according to statistics from the U.S. Census Bureau.
Figures for the first quarter of 2010, released last month, show estimated e-retail spending up 1.5% over the fourth quarter of 2009. But the estimated margin of error of plus or minus 1.2% makes the figure hard to read relative to overall e-commerce improvement in an economy that seems to be moving out of the recession that set in late in 2008, when e-commerce sales tanked for the first time since the government began measuring them.
Compared with the first quarter of last year, estimated 2010 first-quarter e-commerce spending increased 14.3% ' a figure consistent with first-quarter-to-first-quarter spending in the last few years. e-Commerce and general retailing tapers off after the holiday season, when it typically peaks.
Total e-commerce spending in the first quarter ' adjusted for seasonal variation, but not for price changes ' came to $38.7 billion, the Census Bureau says. That figure put e-commerce at 4% of all commerce in the first quarter, which the Bureau estimated at $960 billion. This is the fifth consecutive quarterly overall retail-spending increase since the figure fell for the first time below $1 trillion in the fourth quarter of 2008.
Raw Reporting
Here's how the figures look without adjustments:
- Estimated U.S. retail e-commerce sales for the first quarter: total, $36.6 billion, a decrease of 18.9% ('1.2%) from the fourth quarter of 2009.
- The first quarter 2010 e-commerce estimate increased 14% ('3.3%) from the first quarter of 2009, while total retail sales increased 6.8% ('0.4%) in the same period.
- e-Commerce sales in the first quarter of 2010 accounted for 4.1% of total sales.
What It Means
“It looks like these statistics show a return to the growth pattern that existed prior to the downturn in the second half of 2008,” says expert e-commerce counsel Edward Pisacreta, a partner at Holland & Knight in New York City and an e-Commerce Law & Strategy Board of Editors member. “For e-commerce counsel, if this indeed indicates a rebound in e-commerce activity, it could point to an increase in technology investment as companies become comfortable with spending money to update their e-commerce infrastructure, and thus an increase in the need for legal assistance in that area, as well as in related areas, such as privacy, social media and regulatory issues.”
Other veteran e-commerce counsel agree.
“These numbers suggest that e-commerce is thriving, even in a down economy,” D. Reed Freeman Jr., an e-commerce expert with Morrison & Foerster in Washington, DC, and also a member of e-Commerce Law & Strategy's Board of Editors, says.
Freeman agrees with Pisacreta that the Census Bureau's first-quarter figures are good news for lawyers.
“For business counsel in this area, that is good news, because it will mean more, and more sophisticated, transactional work,” Freeman explains. “For regulatory counsel in this area, especially those who deal in privacy and information security, it means that we will need to help our clients understand the potential effect of new legislation so that the clients can have their voice in Washington and in the states, and also to help our clients understand and stay on top of the FTC's continuing evolution of privacy and information-security standards.”
Olivera Medenica, with the New York City law firm of Wahab & Medenica, sees several factors behind the growth of e-commerce ' factors beyond the typical ones, such as bargains, that most people think of when they hear the term e-commerce.
“Other factors that are pushing sales are the explosion of mobile phone usage and the ease of online access through them, as well as the simple fact that online purchases are done through credit cards as opposed to cash,” Medenica says.
Again, the increase will likely lead to more business for e-commerce counsel, she says. She also sees regulatory issues as an area for more scrutiny.
“But with this increase comes a commensurate increase in problems with defective goods, theft of payment details, cross-border regulatory issues, and general online privacy,” Medenica, also a member of e-Commerce Law & Strategy's Board of Editors, cautions. “Attorneys dealing in this area of the law certainly need to understand what are the legal parameters that online businesses can operate in, not only in the U.S., but abroad.”
And, from Board of Editors member Alan L. Friel, an attorney with Wildman, Harrold, Allen and Dixon, in Los Angeles: “The continued growth of online commerce and marketing are mirrored by a consistent market for legal services related to these activities. Furthermore, increased regulatory scrutiny and a changing legal environment especially regarding consumer privacy and data security are resulting in increased needs for legal counsel.”
How the Census Bureau Defines e-Commerce
The Census Bureau classifies e-commerce sales as any involving goods and services for which a buyer places an order, or for which price and terms of sale are negotiated, over the Internet, an extranet, an electronic data interchange (“EDI”) network (this is the leading method), e-mail or other online system. Payment needn't be made online for the transaction to count as e-commerce.
Perspective Points
U.S. retail e-commerce for all of 2009 was 2% more than in 2008, while total retail sales fell about 7% from 2008.
The Bureau calculated e-tail spending for the fourth quarter at $38.1 billion, adjusted for seasonal variation, but not for price changes. That figure put fourth-quarter e-sales 4.2% beyond third-quarter spending.
As for same-quarter-to-same-quarter increases, fourth-quarter 2009 e-commerce revised figures show an increase of 14% from the fourth quarter 2008 total, while total retail sales increased 2.1% in the same period.
e-Commerce sales in the fourth quarter of 2009 accounted for 4.1% of all sales, which came to $941.4 billion.
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Michael Lear-Olimpi is Editor-in-Chief of this newsletter. He is also principle of Susquehanna Editorial Services, a writing, editing, writing-coaching and media-consulting service for professionals, based in Harrisburg, PA. He can be reached at [email protected], or 717- 635-8839.
e-Commerce sales appear to be continuing their slow upswing, according to statistics from the U.S. Census Bureau.
Figures for the first quarter of 2010, released last month, show estimated e-retail spending up 1.5% over the fourth quarter of 2009. But the estimated margin of error of plus or minus 1.2% makes the figure hard to read relative to overall e-commerce improvement in an economy that seems to be moving out of the recession that set in late in 2008, when e-commerce sales tanked for the first time since the government began measuring them.
Compared with the first quarter of last year, estimated 2010 first-quarter e-commerce spending increased 14.3% ' a figure consistent with first-quarter-to-first-quarter spending in the last few years. e-Commerce and general retailing tapers off after the holiday season, when it typically peaks.
Total e-commerce spending in the first quarter ' adjusted for seasonal variation, but not for price changes ' came to $38.7 billion, the Census Bureau says. That figure put e-commerce at 4% of all commerce in the first quarter, which the Bureau estimated at $960 billion. This is the fifth consecutive quarterly overall retail-spending increase since the figure fell for the first time below $1 trillion in the fourth quarter of 2008.
Raw Reporting
Here's how the figures look without adjustments:
- Estimated U.S. retail e-commerce sales for the first quarter: total, $36.6 billion, a decrease of 18.9% ('1.2%) from the fourth quarter of 2009.
- The first quarter 2010 e-commerce estimate increased 14% ('3.3%) from the first quarter of 2009, while total retail sales increased 6.8% ('0.4%) in the same period.
- e-Commerce sales in the first quarter of 2010 accounted for 4.1% of total sales.
What It Means
“It looks like these statistics show a return to the growth pattern that existed prior to the downturn in the second half of 2008,” says expert e-commerce counsel Edward Pisacreta, a partner at
Other veteran e-commerce counsel agree.
“These numbers suggest that e-commerce is thriving, even in a down economy,” D. Reed Freeman Jr., an e-commerce expert with
Freeman agrees with Pisacreta that the Census Bureau's first-quarter figures are good news for lawyers.
“For business counsel in this area, that is good news, because it will mean more, and more sophisticated, transactional work,” Freeman explains. “For regulatory counsel in this area, especially those who deal in privacy and information security, it means that we will need to help our clients understand the potential effect of new legislation so that the clients can have their voice in Washington and in the states, and also to help our clients understand and stay on top of the FTC's continuing evolution of privacy and information-security standards.”
Olivera Medenica, with the
“Other factors that are pushing sales are the explosion of mobile phone usage and the ease of online access through them, as well as the simple fact that online purchases are done through credit cards as opposed to cash,” Medenica says.
Again, the increase will likely lead to more business for e-commerce counsel, she says. She also sees regulatory issues as an area for more scrutiny.
“But with this increase comes a commensurate increase in problems with defective goods, theft of payment details, cross-border regulatory issues, and general online privacy,” Medenica, also a member of e-Commerce Law & Strategy's Board of Editors, cautions. “Attorneys dealing in this area of the law certainly need to understand what are the legal parameters that online businesses can operate in, not only in the U.S., but abroad.”
And, from Board of Editors member Alan L. Friel, an attorney with
How the Census Bureau Defines e-Commerce
The Census Bureau classifies e-commerce sales as any involving goods and services for which a buyer places an order, or for which price and terms of sale are negotiated, over the Internet, an extranet, an electronic data interchange (“EDI”) network (this is the leading method), e-mail or other online system. Payment needn't be made online for the transaction to count as e-commerce.
Perspective Points
U.S. retail e-commerce for all of 2009 was 2% more than in 2008, while total retail sales fell about 7% from 2008.
The Bureau calculated e-tail spending for the fourth quarter at $38.1 billion, adjusted for seasonal variation, but not for price changes. That figure put fourth-quarter e-sales 4.2% beyond third-quarter spending.
As for same-quarter-to-same-quarter increases, fourth-quarter 2009 e-commerce revised figures show an increase of 14% from the fourth quarter 2008 total, while total retail sales increased 2.1% in the same period.
e-Commerce sales in the fourth quarter of 2009 accounted for 4.1% of all sales, which came to $941.4 billion.
[IMGCAP(1)]
Michael Lear-Olimpi is Editor-in-Chief of this newsletter. He is also principle of Susquehanna Editorial Services, a writing, editing, writing-coaching and media-consulting service for professionals, based in Harrisburg, PA. He can be reached at [email protected], or 717- 635-8839.
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