Monday, July 2, 2001

$556 Million Spent on Online Auctions in May

Nielsen//NetRatings, the world's fastest growing Internet audience measurement service, and Harris Interactive, a worldwide market research and consulting firm, today reported that auction sites grossed record revenues of $556 million dollars in May 2001, as eBay.com took the lead with 64.3 percent of all auction revenues.

Findings from the Nielsen//NetRatings and Harris Interactive eCommercePulse, collected from a May 2001 online survey of 35,000 Web users, found that auction spending in May 2001 spiked 149 percent to $556 million dollars from 223 million dollars in May 2000. Auction revenue accounted for more than 10 percent of total eCommerce spending in May 2001, rising from eight percent the previous year.

"Auctions have grown from a niche clientele of collectors to become a mainstream vehicle for online purchases," said Sean Kaldor, vice president eCommerce, NetRatings.

More than 6.2 million surfers made online purchases at auction sites in May 2001, jumping 22 percent from 5.1 million in May 2000, positioning auctions as the third largest eCommerce category in number of purchasers behind books and apparel.

Total eCommerce spending for May 2001 increased 104 percent to nearly 5.4 billion dollars, as compared to 2.6 billion dollars the previous year.

eBay Leads Category
eBay led the online auction category in May, accounting for 64.3 percent of total auction revenue. uBid followed with 14.7 percent while Egghead.com and Yahoo! Auctions each took 4.0 and 2.4 percent, respectively. Rounding out the list, Amazon.com accounted for two percent of overall auction revenues.

"eBay has done an excellent job converting a very high percentage of their shoppers into buyers and keeping customers extremely satisfied at the same time," said Kaldor. "This has enabled them to dominate the online auction category with four times more revenue than their next closest competitor."