Ebates.com Reports 45% Year-Over-Year Increase in Online Shopping But Decreased Spending Per Shopper in August

Predicts Disappointing Results for Retailers Who Failed To Grow Shopper Base Through Attractive Discounts & Incentives

SAN FRANCISCO--(EON: Enhanced Online News)--Ebates, the pioneer and leader in online cash back shopping, today released an online retail report, showing that cash back shopping continues to grow at an impressive rate. Sales through Ebates.com grew 45% in August 2010 versus the same period last year. Retail categories showing double digit growth in annual sales included Appliances (+88%), Clothing and Accessories (+68%), Health and Beauty (+42%), and Housewares (+30%).

The impressive growth in retail sales via Ebates.com was driven by growth in active Ebates members. Average order size and average spending per buyer actually decreased by 10% and 5%, respectively, from the same period in 2009. The August per-buyer spending decline stands in sharp contrast to the first half of 2010, during which spending per buyer was 10-12% higher than in 2009.

As a result, Ebates CEO Kevin H. Johnson noted “We believe August retail results will be disappointing overall. The few bright spots will be provided by retailers who increased their online activities and attracted an increased number of buyers through discounts, incentives, and special offers. In this economy, the only way to grow is by appealing to the growing number of savvy shoppers.”

Even with a potential pull-back in per shopper spending, Ebates.com expects its members to spend 50% more in 2010 than 2009, easily topping one-half billion dollars in retail spending. In addition to saving with coupons and special offers, Ebates.com members have earned more than $75,000,000 in cash back, and counting.

About Ebates

Over 1,200 online stores have joined the roster of retailers that offer cash back, special deals and coupons to members of Ebates.com. The free membership allows consumers to shop online at their favorite retailers while earning a percentage of every purchase they make; paid quarterly in the form of a "Big Fat Check" or through PayPal. From niceties to necessities, members of Ebates benefit from incentives at top-name merchants for everything from furniture to fashion and appliances to airfare. Because shopping with Ebates is hassle-free: no rebate forms to fill out and no points or miles to redeem, the site supports a strong community of savvy shoppers across the country and around the world.