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Online Retail Sales, Profitability Continue Climb, According To Shop.org/Forrester Research

US Online Sales Expected To Hit $172 Billion In 2005

Cambridge, Mass., May 24, 2005 . . . Ten years after its inception, online retailing is growing up fast. According to The State of Retailing Online 8.0, an annual Shop.org study conducted by Forrester Research (Nasdaq: FORR) of 137 retailers, 2004 online sales rose 23.8 percent to $141.4 billion. Excluding travel, online retail sales also rose 23.8 percent to $89.0 billion, representing 4.6 percent of total retail sales.*
The report predicts that online sales (including travel) will rise 22.0 percent to $172.4 billion this year. Sales excluding travel are expected to reach $109.6 billion.

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According to GfK, Europe s first market research institute in retail sales, DVD recording in Europe s top countries Germany, France and UK, outselling any competitor.

Internet Business Opportunity Several retail categories will experience steep growth this year, largely due to the growing acceptance of online shopping by women. In fact, categories with products purchased largely by women will see the most growth this year. Online sales of cosmetics and fragrances are expected to grow 33 percent while sales of over-the-counter medications and personal care will rise 32 percent. Additionally, sales of jewelry and luxury goods (31 percent) and flowers, cards, and gifts (30 percent) are expected to rise dramatically.

- by as much as 86% in 2002, says Chief Executive Officer Jon Nordmark. ever holiday season for Internet retail sales. Online holiday retail sales in the U.S. are likely to surge to $26 billion this year, up 18% from a year ago, according to Jupiter Research, a unit of Jupitermedia Corp. digit increases. Meanwhile, the National Retail Federation projects total holiday retail sales will increase to $435.3 billion this year, up 5% from a year ago.

Free Money "Though initially adopted by men as a shopping tool, women are flocking to the Internet in droves to comparison-shop, research, and buy," said Scott Silverman, Executive Director of Shop.org. "Online retailers who sell products that are purchased by women are in a favorable position this year, as we expect those categories to grow substantially."

The Debises are part of a trend that' online exchanges that let ticket hunters find out the going rate and make a buy without the anxiety of an auction. According to Jupiter Research's Retail Forecast Summary, the online channel will account for 18.5 percent of all event ticket sales this year. By 2009, online sales will take a 22.7 percent share. (Jupiter Research and internetnews.com are owned by JupiterMedia.)

Work At Home Business In addition, several categories are expected to receive at least 10 percent of their sector's sales from the Internet this year, including: computer hardware and software (48 percent); tickets (28 percent); travel (26 percent); books (20 percent); consumer electronics (13 percent); cosmetics and fragrances (12 percent); toys and video games (12 percent); and flowers, cards, and gifts (10 percent). This year, a total of 13 categories will reach the 5-percent penetration point.

Londoners headed to the shops in a mood to spend in April, as retail sales saw a significant increase, according to figures from the London Retail Consortium (LRC).

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"Bringing online trading technology to businesses that typically haven't traded before delivers new distribution, sales and rewards to all participating parties, " concluded Mr. Kamm. "We expect these and other trade opportunities and trading activity to continue to drive exponential growth in the coming months. As large companies in various business sectors such as media, telecom, profit charities, join our network and we make it more efficient for them and their participants to trade, so to will the trade volume, velocity and fees generated increase accordingly."

Auction Coin Money Paper Multichannel retailers again posted record profitability in 2004. Last year, online retailers improved overall operating margins to 28 percent from 21 percent in 2003. Catalog-based retailers continue to boast the best operating margins, which rose to 32 percent last year from 28 percent in 2003.

Franchise Business Opportunity "With profitability behind them, retailers can now focus on innovation and growth through things like increased integration of their online and offline businesses and internationalization of their sites," said Carrie A. Johnson, lead author of the report and principal analyst at Forrester Research. "One way retailers will grow sales over the next several years will be by launching country-specific sites and operations to accommodate a growing number of international customers."

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Blogging Money Thebillivard One of the most compelling findings of the study addressed retailers' marketing budgets and the effectiveness in marketing through certain channels. This year, search engine marketing appeared as the clear leader as a source of new customers, with retailers reporting that search engine marketing delivered 43 percent of overall customers to their sites. In 2004, 87 percent of retailers who participated in the study used pay-for-performance search placement and spent more than twice as much from their marketing budgets on this category than they did in 2003 ($877,630 in 2004 versus $399,923 in 2003).

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Affiliate Marketing Program According to the study, retailers are keenly aware of the importance that their Web site plays into their overall sales goals. In fact, retailers reported that the Web influenced 20 percent of in-store sales. As a result, retailers are striving to integrate their stores and Web sites, which signals cooperation among channels.

Money Site Thebillivard Com Last year, almost all (92%) multichannel retailers included URLs on in-store materials, up from just 77 percent in 2003. The majority of retailers (81%) also used Web sites to tout their stores. Additionally, 45 percent allowed consumers to purchase and redeem gift cards online and in stores, up from 30 percent in 2003. And nearly one-fourth (24%) of retailers offered in-store product availability on their Web sites last year.

Online Business Opportunity About The State Of Retailing Online 8.0

Pay Per Click Affiliate The State of Retailing Online 8.0 is a detailed survey that is based on information from 137 retailers that shared their confidential data. It explores the opportunities and challenges facing retailers selling and marketing on the Web, including store-based, catalog-based, and Web-only retailers.

Cnn Money * "Retail Sales" exclude travel and include the following categories: sporting goods and equipment; flowers, cards, and gifts; health and beauty; consumer electronics; other (subscriptions, art, and collectibles); apparel; jewelry and luxury goods; home; food and beverage; books; tickets; computer hardware and software; music and video; toys and video games; auctions; and auto and auto parts. These are not the same categories that the National Retail Federation tracks; therefore, the numbers are not comparable.

Business Opportunity Lead Forrester is an independent technology research company that provides pragmatic and forward-thinking advice about technology's impact on business. Business, marketing, and IT professionals worldwide collaborate with Forrester to align their technology investments with their business goals. Forrester offers products and services in four major areas: Research, Data, Consulting, and Community. Established in 1983, Forrester is headquartered in Cambridge, Mass. For additional information, visit www.forrester.com.

Affiliate Program Directory Shop.org is the association for retailers online. It's where the best retail minds come together to gain the insight, knowledge, and intelligence to make smarter, more informed decisions in the evolving world of the Internet and multichannel retailing. Founded in 1996, Shop.org became a division of the National Retail Federation in January 2001. The association's membership includes interactive executives from store-based retailers, catalog-based retailers, Web-based retailers, and retail solution providers.

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