Online Sales to Exceed $200 Billion in 2006
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In a recent press release, Forrester study called "Retailers Integrate Websites Stores to Maximize Sales" make an amazing announcement.
The ninth annual Shop.org study conducted by Forrester Research on 174 retailers, 2006 online sales (including travel) are expected to rise 20 percent to $211.4 billion.
Sales excluding travel will reach $138 billion.
Top sales spots are taken by:
More customers use Internet to compare prices, find gift ideas, and research products.
So retailers rely on their web sites not only to sell merchandise but also to increase sales at their stores.
To create a true multi-channel environment, retailers are employing a variety of different strategies.
More than 2/3 of retailers have consistent pricing across channels (79%) and almost half (46%) allow their customers to buy and redeem gift cards online and in stores.
Some companies give customers the ability to accrue loyalty program points across channels (33%) and offer in-store product information online (26%).
"By encouraging different channels to work together, instead of in isolation, everybody wins," said Scott Silverman, Executive Director of Shop.org.
"Retailers have been focusing on integrating their web sites and stores to better serve their customers, which is paying off for companies in the form of higher sales."
So retailers recognize the importance that the online channel plays in overall sales!
In fact, 22% of offline sales are influenced by the web!
Web sites can also give retailers an opportunity to reach out to an entire new customer base, as more than 1/3(38%) of online customers are new to a company's entire business.
"Retailers spent the first decade of eCommerce scrambling to react to and learn about the Internet," said Carrie Johnson, lead author of the report and Research Director, Vice President at Forrester Research.
"Companies are now able to take a step back and are busy planning strategies and prioritizing technology investment for the long term. As a result of these efforts, the next five to ten years of online retail will be even more competitive and more innovative than in the past."
Click here to read more about this market research.
PS: if only 0.2% from the online sales will be in PURE profits, the numbers are still mind-blowing!
PPS: did you finish your niche web sites? If not, do it right now.
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The ninth annual Shop.org study conducted by Forrester Research on 174 retailers, 2006 online sales (including travel) are expected to rise 20 percent to $211.4 billion.
Sales excluding travel will reach $138 billion.
Top sales spots are taken by:
- computer hardware and software ($16.8 billion),Pet supplies and cosmetics and fragrances are expected to experience growth rates over 30 percent, more than any other categories!
- autos and auto parts ($15.9 billion),
- apparel, accessories, and footwear ($13.8 billion).
More customers use Internet to compare prices, find gift ideas, and research products.
So retailers rely on their web sites not only to sell merchandise but also to increase sales at their stores.
To create a true multi-channel environment, retailers are employing a variety of different strategies.
More than 2/3 of retailers have consistent pricing across channels (79%) and almost half (46%) allow their customers to buy and redeem gift cards online and in stores.
Some companies give customers the ability to accrue loyalty program points across channels (33%) and offer in-store product information online (26%).
"By encouraging different channels to work together, instead of in isolation, everybody wins," said Scott Silverman, Executive Director of Shop.org.
"Retailers have been focusing on integrating their web sites and stores to better serve their customers, which is paying off for companies in the form of higher sales."
So retailers recognize the importance that the online channel plays in overall sales!
In fact, 22% of offline sales are influenced by the web!
Web sites can also give retailers an opportunity to reach out to an entire new customer base, as more than 1/3(38%) of online customers are new to a company's entire business.
"Retailers spent the first decade of eCommerce scrambling to react to and learn about the Internet," said Carrie Johnson, lead author of the report and Research Director, Vice President at Forrester Research.
"Companies are now able to take a step back and are busy planning strategies and prioritizing technology investment for the long term. As a result of these efforts, the next five to ten years of online retail will be even more competitive and more innovative than in the past."
Click here to read more about this market research.
PS: if only 0.2% from the online sales will be in PURE profits, the numbers are still mind-blowing!
PPS: did you finish your niche web sites? If not, do it right now.
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Posted by Valeriu Popescu at 2:33 PM
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