Feeds

Online retail making breakthrough, says report

In the US it'll be worth $108 billion by 2003. Why is it always 2003 these days anyway?

  • alert
  • submit to reddit

New hybrid storage solutions

Forrester Research says that online retail sales are moving into an upward spiral that will take them to $108 billion in the US by 2003, when 40 million US households will be shopping online. The prediction is based on improving consumer acceptance of online shopping and on this year's data, which suggests that breakthrough point is finally arriving. By the end of this year Forrester says almost 9 million US households will have shopped online for travel services and retail goods other than vehicles, spending $7.8 billion. As consumers get over worries about security and privacy (Forrester may be discounting the probability of massively embarrassing and highly publicised screw-ups here) retailers will need to start addressing the growing pool of consumers. "On-line retailing has left the experimental phase and is accelerating into the mainstream," says James McQuivey, analyst in Forrester's On-line Retail Strategies service. "Merchants are reporting dramatic growth in both sales and site traffic over the past 12 months. This pattern will become a self-perpetuating cycle -- as more consumers come on-line to shop, retailers will compete more aggressively for sales, in turn drawing still more consumers and merchants to the Web." Forrester splits online retail into three broad categories, and predicts the numbers for 2003 as follows. Convenience items such as books, music, clothes and flowers, and they'll be worth $32 billion. Researched purchases (airline tickets, computers etc) will be $56 billion, with travel alone achieving $30 billion. Replenishment goods such as groceries and "personal care" (is this big in the US? What is it?) will be slower in taking off, "hampered by the lack of a feasible distribution model," so it'll only account for $19 billion. We're not sure we can figure that last one out. You order the goods, somebody up at the store puts them in a van, then brings them round. Why isn't this a distribution model? And The Register is pretty sure that we'll have spent over $19 billion on Tesco Internet shopping on our own by 2003. Mind you, that includes beer and cigarettes. ®

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.