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E-business: Amazon led in Christmas e-tailing

by Barry McCall

A strong performance during the Christmas shopping rush ensured that Amazon.com continued to lead the e-tailing pack on both sides of the Atlantic. According to figures released by European Internet research firm NetValue, the books and gifts seller was the clear leader among shopping sites, with 460,000 secure connections being made to the UK site in November.

Next best was Tesco with 190,000 connections. NetValue uses secure connections to measure the success of e-tailing sites, since the establishment of such a connection is a fairly clear indication of a purchase or strong intention to purchase. Almost the entire UK top 10 of secure connections is made up of banks and financial institutions, with Amazon and Tesco being the only retailers to make the list. Overall, more than 5,000,000 UK Internet users made a secure connection on an e-tailing site in November, an increase of over 3,250,000 users since November 1999.

The story is much the same in the US, where Amazon's lead over rivals was even more astonishing. In the period from October 29 to December 24 the Amazon-Toys'R'Us alliance had almost 123 million visits. Its closest rival, the troubled toyseller Etoys.com, had 22 million visitors, according to figures compiled by Nielsen//NetRatings. While Amazon's leadership position may not be surprising, an interesting trend is emerging in the US where traditional bricks and mortar companies are now beginning to make serious inroads in the e-tailing space.

According to the Nielsen//NetRatings figures 11 of the top 14 US e-tail sites are owned by established bricks and mortar retailers. Dell occupied the number three position in the holiday Top 15. Barnes & Noble came in at number four while Walmart made it to number six. "The 2000 holiday season will best be remembered for the onslaught of brick and mortar stores," said Sean Kaldor, vice president of eCommerce at NetRatings. "Strong brand awareness, millions of loyal customers, and proven retailing savvy led to the success of brick and mortars this year."