Online Retailers Bullish On Web Sales

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Online Retailers Bullish On Web Sales

By: Mike Sachoff
2009-05-08

The economy is causing online retailers to rethink their marketing strategies in order to acquire and retain customers, according to findings from "The State of Retailing Online 2009," study from Shop.org conducted by Forrester Research.

While Internet sales continue to outpace traditional retail sales, companies are realistic about current challenges. According to the survey, half of respondents (54%) expect overall retail growth to slow during the next 12 months and 57 percent say the economic slowdown is hurting their company's bottom line.

That said, companies are optimistic about online operations with four out of five retailers say the Web is better suited than other channels to withstand the recession and on third say the downturn has helped them to capture greater market share.

"Retailers everywhere are trying to get their arms around a pullback in consumer spending, and online retailers are no exception," said Scott Silverman, executive director of Shop.org.

"Online retailers are trying to weather this economic storm by doing more with less, making smart spending decisions, and leveraging effective, affordable tactics like email to grow their businesses."

Almost half of retailers surveyed (46%) have no plans to cut back original budgets and will spend as planned on their online business, while 24 percent of retailers will spend more on their Internet business than originally planned. Companies planning to spend more will increase investment in a number of areas, including search (80% of respondents), email (65%), and social marketing (60%).

"Because consumers continue to spend online, interactive marketing spend to drive web sales remains a lucrative investment," said Sucharita Mulpuru, Forrester Research principal analyst and author of the report.

"While other retail channels struggle, eCommerce managers have a unique opportunity to drive more sales and test different tactics that resonate with consumers."

View All Articles by Mike Sachoff

About the Author:
Mike is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.


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