eCommerce News & Events On-Demand | Demandware Clients Outperform Industry Averages During 2008 Holiday Season

Demandware, developer of the only enterprise-class on-demand ecommerce platform, reports that its U.S. and European client base significantly outperformed market averages across all key performance indicators this past holiday season. Across all industries, Demandware clients experienced considerable revenue growth, as well as increases in total orders and average order value. In addition, Demandware clients maintained an average site uptime of 99.96 percent, notably outperforming the 96.81 percent average site availability of the nation’s top 50 ecommerce sites, as reported by Gomez in its US Internet Retailer Benchmark.

Despite grueling retail conditions leading up to the holiday season across the globe, sites running on the Demandware Platform defied the downward trend and experienced growth compared to the 2007 holiday season. In aggregate, Demandware clients achieved the following results during the 2008 holiday season:

Demandware Global Client Performance
2008 vs. 2007 Holiday Season
Key Performance Indicator (KPI) y/y Percent Change
Revenue 30%
Total Orders 28%
Average Order Value 1.5%
Source: Demandware, Inc. Aggregate Client Metrics

These performance metrics are in stark contrast with industry averages, including a 3 percent decline in overall online spending for the 2008 holiday season when compared to the same period 2007 (source: ComScore) and 96.81 percent average site availability among the nation’s top 50 e-commerce sites, according to the US Internet Retailer Benchmark (source: Gomez).

Armed with strong merchandising capabilities and a solid foundation upon which to run their sites, Demandware clients were able to implement holiday promotions quickly as needed in order to ensure a successful holiday season. In addition, while many retail sites experienced hours of downtime resulting in millions of dollars in lost sales, Demandware clients experienced optimal uptime, enabling them to capitalize on the busiest shopping days of the year.

Results Show Variances in U.S. vs. European Performance

Demandware’s European clients, who represent approximately 45 percent of its total order volume, experienced higher growth than U.S. clients. A breakdown of performance metrics for Demandware clients by geography is as follows:

Demandware Global Client Performance, U.S. vs. Europe
2008 vs. 2007 Holiday Season
Key Performance Indicator (KPI) U.S.
y/y Percent Change
y/y Percent Change
Revenue 18% 49%
Total Orders 12% 53.6%
Average Order Value 5.5% -3%
Source: Demandware, Inc. Aggregate Client Metrics

“Based on Demandware clients’ performance this holiday season, it appears that the European market experienced less demand volatility than in the U.S. The ecommerce market there continues to show comparatively stronger growth as more consumers shift their shopping online and retailers upgrade their sites with state-of-the-art functionality,” said Julian Chu, Director of Client Success, Demandware. “But Demandware’s retailers in both regions were able to drive year-on-year growth in total sales and order volume, and in many cases average order value as well. The latter was a particular challenge – heavy discounting during the season put pressure on average unit prices, but retailers’ effective use of promotions and cross-selling helped to push basket sizes up in the other direction.”

About Demandware, Inc.
Demandware drives the success of high-growth brands with the only enterprise-class On-Demand eCommerce Platform that empowers merchandising and marketing talent with total control over the shopping experience and continuous competitive differentiation. Leading brands such as Bare Escentuals, Barneys New York, House of Fraser, Jones Apparel Group, Playmobil and Timberland leverage Demandware’s enterprise class ecommerce functionality and automatic upgrades to help achieve higher conversion rates, increase average order size, and improve customer retention. Demandware is the only on-demand ecommerce solution that enables the rapid rollout of new sites, provides ubiquitous access to business and technical users, and is backed by a patented grid computing architecture that delivers capacity as needed for performance and reliability that exceeds industry standards. For more information about Demandware, visit, call 888-553-9216 or email