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| UPDATED: 2006-05-23 |
 Online Shopping Going Up 20 Percent 
By: David Utter 2006-05-23 A study by Forrester Research and Shop.org predicts 2006 online retail sales will reach $211.4 billion, only three years after those sales topped $100 billion.  The annual State of Retailing Online study conducted by the two companies sees big increases in cosmetics and pet supplies sold over the Internet in 2006. Reuters cited Shop.org's executive director Scott Silverman in predicting a banner year for online retailers.
"Online is a key growth driver for retail overall. It's going to be a bellwether for overall retail." About $73 billion of those sales will be for travel services. Sites like IAC's (IACI) Interval International, which helped deliver $81.4 million in revenue to IAC's Vacations business in the first quarter of 2006, stand to profit from that spending. Aside from travel, the study said computer hardware and software, cars and parts, and apparel and accessories will be the top three retail categories for 2006. Shop.org expects revenue of $16.8 billion, $15.9 billion and $13.8 billion for the trio. Silverman also said in the article that growth of 20 percent annually for the next several years would be likely, but anything close to 30 percent likely would not be sustainable. Online retailers dealing in physical goods have used a variety of enticements to boost sales. Free shipping has been a successful offer for many, as shoppers had in the past demonstrated a habit of abandoning shopping carts after seeing how much shipping would add to an order. Gift cards and loyalty programs have helped a number of retailers increase sales. The study also noted that retailers with brick-and-mortar stores and online shopping have done a better job integrating the two sides of those businesses, which helps remove pricing confusion for consumers. --- Tag: Online Shopping Add to Del.icio.us | DiggThis | Yahoo! My Web | Furl Bookmark IFN - 
View All Articles by David Utter About the Author: David Utter is a staff writer for InternetFinancialNews and WebProNews covering technology and business. |
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