Home  › Stats › Audience/Traffic

Online Retail Growth Robust

  |  May 24, 2005   |  Comments

Online retail soars in all categories as paid search delivers new customers.

Online retailers saw a 24 percent increase in sales in 2004; growth through 2005 is projected to achieve another 22 percent. The findings were published in "The State of Retailing Online 8.0," an annual report published by Shop.org in conjunction with Forrester Research.

Online Retail Growth in billions
Click to view full-size chart
A 24 percent growth rate outpaces traditional retail, which saw an increase of only seven percent. Last year, online accounted for 6.5 percent of total retail sales, up from 5.4 percent in 2003. In 2005, online sales are expected to account for 7.7 percent of total retail sales.

Revenue Growth in Retail Categories
Click to view full-size chart
Every category tracked in the study experienced growth. Health and beauty increased 58 percent. Sporting goods shot up 43 percent. Computer hardware and software tied auto and auto parts, both growing by 13 percent.

While consumer confidence in secure transactions may account for some of the growth in online sales, supply and demand takes a share of the credit. Retailers continue to optimize mechanisms in how they reach customers. Consumer demand is growing as the convenience of shopping online improves.

"On the demand side, we continue to see more new shoppers coming online," said Scott R. Silverman, executive director of Shop.org. "And the new shoppers that have been online continue to get more comfortable."

Search engine marketing traffic accounts for nearly half (43 percent) of new online retailers'. E-mails to house lists are seeing conversion rates of 4.3 percent.

Multi-channel retailers are benefiting from creating a seamless experience between on- and offline channels. Sixty-six percent of retailers surveyed provide printable coupons on their Web sites that can be redeemed in stores, up from 46 percent in 2003. Retailers are also enabling sales staff to place online orders for customers. This is the case with 53 percent of retailers, up from 34 percent in 2003.

"Retailers are integrating their systems and their channels, making the best of each channel available to their customers," said Silverman. "Making for a better shopping experience overall."

ClickZ Live New York What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. Register today!

ABOUT THE AUTHOR

Enid Burns

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Stats delivers stats headlines to your inbox twice a week. Subscribe today!

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

5 Ways to Personalize Beyond the Subject Line

5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.

WEBINARS

    Information currently unavailable

Jobs

    • Lead Generation Specialist
      Lead Generation Specialist (The Oxford Club) - BaltimoreThe Oxford Club is seeking a talented writer/marketer to join our growing email lead-generation...
    • Health Marketing Editor
      Health Marketing Editor (Agora Inc.) - BaltimoreCome flex your intellectual muscle as part of Agora, Inc’s (http://agora-inc.com/) legal team...
    • Marketing Systems Analyst
      Marketing Systems Analyst (OmniVista Health) - BaltimoreOmniVista Health is looking to add a Marketing Systems Analyst to our expanding team. We...