E-commerce revenues fall for first time ever

The situation for online shopping is even worse than previously predicted. While earlier estimates had predicted that the growth of e-commerce revenues would dramatically slow, new data shows that online sales are actually falling vs. last year. It's a watershed bit of news because it's the first time that's ever happened.

According to ComScore, sales for the first 23 days of November fell 4 percent vs. the same period in 2007. The total haul: $8.19 billion spent online during that period. Sounds like a lot, but it's got e-tailers scared out of their minds.

There may be a light at the end of the tunnel, at least. Though the current figures are dire, the company says it predicts some recovery over the rest of the year thanks to price wars and the current "cocooning" trend of staying home instead of venturing out to shop. ComScore is figuring overall sales for next month will end up right where they were in 2007, and since 2007 was huge for online sales, that's significant.

"All bets are off," however, if "any more significant bad news" erupts over the next few weeks. "We have our fingers crossed that the stock market will not go through another 2,000-point meltdown," says ComScore chairman Gian Fulgoni. Yikes, man! Don't even joke about something like that!

LINK: E-Commerce Shrinks for First Time, Reserach Firm Says