E-commerce sales continue to increase

By Monee Fields-White
Bloomberg News Service

WASHINGTON — The value of U.S. Internet commerce in the first quarter increased from the same period last year, government figures showed.

Online purchases totaled $9.85 billion between January and March, the Commerce Department said. That's up 19.3 percent from $8.26 billion in the same quarter a year ago. In the fourth quarter last year, online sales were a record $11.2 billion.

The value of Internet sales accounted for 1.3 percent of all retail business in the first quarter, an increase from 1.1 percent in the same three months last year. Amazon.com Inc. and Barnes & Noble.com Inc. are among Internet retailers reporting increased sales during the first quarter.

"The outlook is quite favorable for electronic commerce retail sales," said Richard Hastings, an economist at Cyber Business Credit LLC in New York, before the report. Hastings noted that more people have access to broadband Internet access in their homes, which is "making shopping easier and more enjoyable."

The government surveyed 11,000 businesses, including mail order and online retailers, furniture stores, building materials dealers, new car dealers, and department and clothing stores. Online travel services, financial brokers and ticket sales agencies were not included.

The new statistics aren't adjusted for seasonal variations or broken down by industry. Because of that, the government says the figures shouldn't be compared with private industry estimates.

Sales at Amazon.com, the world's largest Internet retailer, jumped 21 percent, limiting its first-quarter loss to $23.2 million. U.S. sales of books, movies and music rose 8.2 percent, helped by discounts and free shipping.

Barnes & Noble.com, the second-largest U.S. Internet bookstore, said sales rose 15 percent in the first quarter. Barnes & Noble.com drew shoppers with its free shipping for orders of two items or more and discounts on best-selling books.