E-Consumers Spend Billions: Love Auction Sites

Consumers spent $5.26 billion online in U.S. retail purchases, or 0.7% of all sales during the first quarter, according to a report on e-commerce by the Commerce Department.

Fourth quarter 1999 sales were $5.20 billion, or 0.6% of total purchases.

The report is part of the department’s scientific survey to address the effect of Internet business on the economy.

The government surveyed 12,000 businesses, including mail- order and online retailers, furniture stores, building materials dealers, new car dealers, groceries and department and apparel stores. Online travel services, financial brokers and ticket sales agencies were not included.

In a separate survey conducted by Rochester, NY-based Harris Interactive Inc., an estimated $7 billion was spent by consumers at Internet shopping sites during the first quarter. That number equaled Internet spending during the fourth quarter which included the holiday shopping season.

Internet auction sites attracted the biggest spenders with $644 million followed by clothing sites at $619 million. Book sales added up to $461 million of the sales, while music and video spending was $340 million. Travel purchases totaled $2 billion.