Successful Holiday 2011 Online Sales Season Not Limited to Retail Giants, Reports Kabbage
Study by Online Merchant Financial Services Company Reveals Sales Jumps for 2 Out of 3 Small-to-Medium e-Retailers, Optimism for 2012
ATLANTA, Jan. 19, 2012 -- Kabbage, Inc., a provider of working capital for small businesses, today announced the results of its post-holiday 2011 retail study focusing on small-to-medium online merchants. The survey indicates a highly successful season, with 69% percent of respondents reporting increased sales. On average, study participants experienced a 32% hike in sales compared to the 2010 season.
Other notable survey highlights:
•Seasonal promotions were offered by 47% of respondents, with 30% of those promotions including a "Free Shipping" component
•E-commerce companies consistently purchased inventory in the three months leading up to December, with 76% of respondents buying inventory in October
•Half of the respondents reported no rise in product pricing for 2011, with 36% noting higher prices
•Only 11% of surveyed e-retailers reported a drop in sales for the 2011 holiday season
•More than 50% of e-commerce companies had more demand for their products than supply this holiday season and would have benefited from having more cash available to buy inventory.
Kabbage's study included responses from its client base of small and medium-sized e-commerce companies, representing several industry verticals. The study's objective is to measure category growth and identify industry trends.
When asked about prospects for 2012, respondents showed solid optimism. Positive attitudes about sales growth in the coming year were shared by 88% of those responding.
Kabbage, which officially launched in October, 2010, has become a critical piece of the operational puzzle for many online merchants. Faced with daunting requirements and even reticence from traditional sources of funding, online merchants have turned to Kabbage for the working capital they need to grow their businesses. To learn more, log on to www.kabbage.com.
About Kabbage, Inc.
Kabbage, Inc., headquartered in Atlanta, Georgia, is the first financial services company offering a fully automated data and technology platform for the delivery of working capital and other financial services to merchants utilizing the Internet to sell their products and services, interact with vendors and market themselves. Kabbage is venture funded and backed by Mohr Davidow Ventures and BlueRun Ventures with additional investors including: David Bonderman, founder of TPG Capital, Warren Stephens, CEO of Stephens Inc., the UPS Strategic Enterprise Fund and Western Technology Investment. For more information, please visit www.kabbage.com.