IBM: Online spending rises Father’s Day week
Armonk, N.Y. – Overall U.S. online retail sales for the week leading up to Father’s Day (June 9-15) were up more than 14% from the same period in 2013. According to the cloud-based IBM Digital Analytics Benchmark, Father’s Day average order value was $119.37.
Mobile traffic accounted for more than 38% of all online traffic, up more than 26% compared to the same period in 2013. Mobile sales saw strong growth, up more than 37%, reaching nearly 19% of all online sales. Smartphones drove 24.8% of all online traffic compared to tablets at 12.8%. However, tablets drove 12.2% of all online sales while smartphones accounted for nearly half of that at 6.4%. Tablet users also averaged $106.71 per order, compared to smartphone users, who averaged $89.55 per order.
As a percentage of total online sales, iOS was almost four and a half times higher than Android, driving 15.217% compared to 3.4% for Android. On average, iOS users spent $103.85 per order compared to $73.08 for Android users, a difference of 42%. iOS also led as a component of overall traffic with 25.6% compared to 12.3% for Android.
Shoppers referred from Facebook averaged $99.43 per order, compared to Pinterest referrals, which drove $142.75 per order. However, Facebook referrals converted sales at a rate more than four times that of Pinterest referrals, perhaps indicating stronger confidence in network recommendations.
The IBM Digital Analytics Benchmark also reported real-time trends across three major retail categories for Father’s Day purchases:
Department Stores: Father’s Day total online sales grew by 30.5% from the same period last year, with mobile sales growing by 29% year over year.
Home Goods: Father’s Day total online sales grew by 21.4% from the same period last year, with mobile sales growing by 25% year over year.
Apparel: Father’s Day total online sales grew by 13.5% from the same period last year, with mobile sales growing by more than 42% year over year.
Report: PayPal to expand operations in Ireland
San Jose – PayPal is reportedly expanding the customer service center located in its European headquarters based in Dundalk, Ireland. According to the Irish Independent, PayPal will make a “massive investment” in the center in the next four years that will add 400 workers.
The expansion will bring the combined PayPal-EBay workforce in Dundalk to 1,850. New jobs will include customer solutions, risk operations and telesales positions.
NRF, RILA ask for swipe fee settlement overturn
Washington, D.C. – The National Retail Federation (NRF) and the Retail Industry Leaders Association (RILA) have asked an appeals court to overturn a federal judge’s approval of a lawsuit settlement regarding Visa and MasterCard’s credit card swipe fees, saying it was negotiated by only a handful of merchants and would do nothing to bring the fees under control.
Both organizations filed notices of appeal with the 2nd U.S. Circuit Court of Appeals in New York earlier this year, and followed up with a joint brief asking the court to overturn a December 13, 2013, ruling by U.S. District Court Judge John Gleeson. The district court approved the antitrust settlement even though NRF, RILA and other opponents argued for more than a year that it failed to reform a price-fixing system under which Visa and MasterCard set fees for credit cards issued by thousands of banks. Rather than lower the fees, the card companies proposed in the settlement that they be passed along to consumers as a surcharge. Major retailers rejected the surcharge proposal, saying it was the opposite of what they had sought.
“The truth is that there is no settlement with the retail industry, only an agreement with a handful of merchants who do not represent the industry as a whole,” NRF senior VP and general counsel Mallory Duncan said. “Given that the judge knew this backroom deal was opposed by a broad range of small and large retailers alike and allows these fees to continue to skyrocket, it clearly should never have been approved. This is a serious mistake the appellate court needs to correct.”