More evidence that businesses are seeing greater value in on-line retailing comes today with the news that ToysRUs has paid £3.6m ($5.1m) for the Toys.com domain name.

It’s thought to be the highest price paid for a domain this year although nowhere near to the record $14m paid for sex.com in 2007 or the $9.5m paid for porn.com

While the prices being paid for domain names have dropped by as much as half during the credit crunch, many domain name sellers are reporting an increase in the number of sales, especially to small and medium-sized businesses.

One UK domain name seller Sedo reports a trebling of domain name sales.
A spokesperson for Sedo is reported as adding: “In the case of ToysRUs it could be that they are thinking of rebranding or increasing their online presence. Toys.com is going to put them in the top search ranking and is likely to give them kudos in terms of brand recognition.”

Internet retail observers believe that as the recession bites more businesses are looking to go on-line in a bid to stay afloat. E-tailing is seen as a more cost effective and efficient way to operate than via high street retailing.

One analyst said: “This is especially true of brick and mortar retailers. There is much less overhead involved in selling toys for example online than through hundreds of cash-draining big box retail stores.”

The Toys.com auction, which took place last week, saw a series of bidders for the domain. But as the price hit £2.1m ($3m), only two were left: ToysRUs and National A-1 Advertising.

Tags: Business, domain name, retail

This entry was posted on Tuesday, March 24th, 2009 at 2:55 pm and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. Posted by Leon You can leave a response, or trackback from your own site.