Online Shopping and E-Commerce

Declining prices of internet connectivity and growing confidence in online web stores have sent online sales figures soaring over the past few years. It seems that every year, online sales figures increase. This can only mean one thing,shopping online is here to stay.

According to the US Census Bureau of the Department of Commerce, online retail sales accounted for 1.9 percent of the total retail sales in the fourth quarter of 2003, representing more than $17.2 billion in revenues. This was up to 25% by 2004. The graph doesnít plateau here. According to Forrester Research online Christmas shopping contributed for $13.8 billion in revenues in 2006. Globally, online retail contributed revenues of $747.6 billion for the year 2006, this is a 14.8 percent growth over the previous year and 23.1 percent of the total retail sales for the year.

It has long been a belief that consumers prefer to actually see or experience something before making a major purchase. However, with the growing availability of comparison shopping sites or sites that host product ratings, consumers are leaning more and more towards 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. It appears a similar survey in 2006 confirms these figures when it comes to purchasing large products.

Of course, the comfort levels for internet has been increased by the discounts offered by retailers, including good after-sales service and offers on home delivery of products. Also, as major high street companies launch online versions of their brick and mortar outlets, where people can find 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