Online Retailers Make Changes To Improve Bottom Line.(survey by Boston Consulting Group and Shop.org)(Brief Article)(Statistical Data Included)

Food Institute Report, The, September, 2000

Online retailers, both e-tailers and click and mortars, spent about $40 to acquire each new shopper in the second quarter of 2000 compared to $45 in the first quarter and $71 in the fourth quarter of 1999, according to a survey by Boston Consulting Group and the trade association Shop.org. While it is expected that this figure will rise during the holiday season in the fourth quarter of 2000, it is not predicted to go above $50 or $60.

This was only one of the steps online retailers took to improve or obtain profitability. Another cost-cutting measure used was canceling or renegotiating lower rates on television and online advertising. Twenty-nine percent of the 66 online retailers surveyed deferred website upgrades and 11% laid off employees. Online retailers...

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