Online retail sales in the US are predicted to rise by almost 25% this year, with revenues forecast to increase to $109.6 billion, up from $89 billion in 2004, according to a new study released by Shop.org and conducted by Forrester Research.
The projections are in line with analyst eMarketer’s latest online retail estimates, predicting US online retail sales to reach $84.5 billion this year, a 22.1% increase from last year (see
US Online Shopping To Reach $84.5 Billion In 2005).
Commenting on the estimates, Jeffrey Grau, eMarketer senior analyst and author of the E-Commerce in the US report, said: “Internet retailing has entered its young adulthood. The next ten years will be marked by a deepening consumer acceptance of online purchasing.”
The new Shop.org report indicates that the impact of female online shoppers will be felt greatly this year, with women “flocking to the internet in droves to comparison shop, research and buy” according to Scott Silverman, executive director of Shop.org.
The study predicts that growth will be particularly strong in segments popular among females, with online sales of cosmetics and fragrances estimated to rise by 33%. Sales of over-the-counter medications and personal care are forecast to be up by 32%, sales of jewellery and luxury goods will be up 31% and flower, card and gift sales will increase by 30%.
Females made up 51.6% of the US online population in 2004, and are predicted to rise by 2.3% to 52.6% by 2008, according to eMarketer’s Women Online in the US report (see Increasing Presence Of Women Online).
Cultural, societal and internet business trends are attributed to the female online dominance, with eMarketer forecasting the female majority to become more pronounced over the next five years, having a knock on effect on internet content, commerce and marketing.
In its Women Online in the UK report, eMarketer claims that adult women are doing more and more of their shopping online. Research by Millward Brown, reveals that in 2004 a quarter of UK consumers spent more than £1000 online, leading the way in Europe in terms of online spend (see UK Leads Europe In Online Spending).
eMarketer states that “as the female influence grows across the internet, companies will need to use techniques that appeal to women, including word of mouth marketing, email and relationship building.
Content and news sites, marketers and agencies must also be prepared to make changes in how they interact with women online, according to eMarketer.
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