Final Results for Cyber Holiday Pulse Index

The Pulse Index is an annual tracking of online shopping activity during the holiday season. From November through January, Chase Paymentech monitors the daily activity of 25 of the largest 150 Internet retailers. The data includes the total number of payment transactions and total dollar value processed. The data is taken from transactions crossing Chase Paymentech's global processing platform.

Final Results for Cyber Holiday Pulse Index

"The Pulse Index was remarkable this year," said Mia Shernoff, marketing executive for Chase Paymentech. "Because it tracks actual transactions on a daily basis for such a large number of major e-commerce merchants, the Index provided unique insight into the behavior of online shoppers and how the economic climate affected their buying patterns."

Online Holiday Shopping 2008 - A Mixed Bag

For the 2008 holiday shopping season, the Pulse Index results represent online purchases beginning on November 1, running through December 31. While sales volume and transaction count both show an increase, the average ticket, or amount per sale, declined.

The statistics indicated:

• Sales volume for the holiday season was up a modest 4.5 percent versus 2007.
• Transaction count was up a significant 16.5 percent.
• Average value per transaction was down an unanticipated 10.3 percent.

According to Forrester Research Principal Analyst Sucharita Mulpuru, the mixed e-commerce news highlights the environment faced by retailers this year. "This holiday season challenged all retailers," she said. "Web transaction volume was up significantly from last year, but the relatively lower revenue numbers point to aggressive discounting by retailers and eager deal-hunting by shoppers."

The tough shopping season, however, was an opportunity for some e-commerce merchants. Said Mulpuru, "A few branded retailers with very favorable pricing strategies were able to take advantage of the holiday season's circumstances and increase their market share. There should be a shakeout of Web retailers, but that will leave the remaining players more favorably positioned for growth into 2010 and beyond."

Additional highlights of the 2008 Pulse Index included:

• The peak shopping season (the period between Thanksgiving and Christmas) sales were down 4.5 percent, but transaction volume was actually up 5.2 percent - this despite five fewer shopping days during this period versus 2007.
• The largest day for transactions was Tuesday, December 16, with 3.96 million transactions. This was only slightly higher than Wednesday, Dec 17, which saw 3.95 million transactions.
• The largest day for sales was Tuesday, December 2, with more than $218 million, topping Wednesday, December 17, which saw more than $217 million.

Said Aaron Press, director of market research for Chase Paymentech, "The practical lesson we took from this year's Pulse Index is that all of the hype surrounding Cyber Monday, is just that: hype. Merchants looking to capture additional sales or attract new customers should consider focusing their discounts and promotions on the middle of the week. Tuesday through Thursday is the peak shopping time for online consumers."

Mia Shernoff concluded, "There is a lot of value in being able to see the information and trends reflected in an index representing actual transactions among e-commerce merchants. It helps companies with everything from allocating resources to scheduling promotions during a crucial time."

Data and charts are updated daily, with weekly commentary to explain any trends, offer historical insight and provide context. Guest commentary will be provided by Sucharita Mulpuru from Forrrester and Aaron Press, Director of Market Analysis for Chase Paymentech. Visit the Pulse Index every business day at 2:00 P.M. EST to see the daily numbers, or subscribe to our weekly commentary via RSS. Media inquiries should be directed to James Wester, Director of Corporate Communications for Chase Paymentech at 877.843.5631  www.chasepaymentech.com 

Source: Presss Release