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http://www.callowaygreen.com/Declining prices of internet connectivity and growing confidence in online retail stores have sent online sales figures soaring over the past few years. It seems that every year, online sales figures increase. It seems the consensus is,shopping online is not going away.
The US Census Bureau states that retail sales online accounted for 1.9% of the total sales at the end of 2003. This represents more than $17.2 billion in total revenues. This was up to 25% by 2004. The graph doesnít plateau here. According to Forrester Research online Christmas shopping alone accounted for $13.8 billion in revenues in 2006. Around the world, online retail contributed revenues of $747.6 billion for the year 2006, representing 14.8 percent increase over 2005 and 23.1 percent of the total retail sales for the year.
It has long been a belief that consumers prefer to actually see, touch and feel a product before making a major purchase. However, with the growing availability of comparison shopping sites or sites that provide product ratings, consumers are relying on online investigation to ensure that they buy the right product for the best possible price. In fact, a survey conducted by Pricegrabbers.com in March 2008 shows that 81% of the respondents stated they researched on the internet first for both products and retailers when it came to shopping for home furniture and appliances. In fact, there was a significant rise in the confidence level of consumers while making large purchases online as compared to a similar survey conducted in 2006.
Of course, the comfort levels for internet has been boosted by the deals offered by retailers, including good after-sales backup and offers on home delivery of products. Also, as major high street companies launch online versions of their brick and mortar shops, where people can access the same quality and discounting without the headache of driving all the way to the store and fighting through the masses shopping for similar stuff.
If you still need proof that the world is moving towards online retail in a big way, consider this:
The UK Office for National Statistics predicts that online shopping in the nation is likely to continue to grow upwards, accounting for £162 billion in revenues by 2020 and representing 40% of total retail sales.
In short, the online shopping train has taken off and there is no stopping it now. If you want to get on board, feel free to give us a call on 0845 0574320
Author:
Andy CallowayAbout the Author:Andy Calloway is a director at Calloway Green Ltd. He is a specialist in search engine optimisation and website development.
July 20, 2008 01:32:20 PM
