Online retail sales in U.S. are expected to reach $65 billion in 2004* and this double digit growth is expected to continue through 2008 where it will reach $117 billion. As consumers become more comfortable with online functions, retail, product research, and retailers focus dollars on making shopping easier, raising their levels of customer service, and providing a seamless customer shopping experience from channel to channel, America’s love affair with online shopping will soar.  Retailers beware. This continuing relationship requires security and trust. Make sure your company delivers both.

News and Pros

According to the report, “Market Forecast: U.S. Retail 2004-2008”, the growth in online retail will be due in part to new online buyers, and not just online shopping veterans. Jupiter expects the online buying population to grow by 14 percent in 2004, representing 30 percent of the U.S. population. By 2008, one-half of the population will make purchases online.

Spending More

The average online shopper is expected to spend $40 more this year than they did in 2003. This will bring the average to $585 per buyer. This trend is expected to grow through 2008, when the average annual spending per buyer will be almost $780.

What Categories?

The biggest opportunity of growth in product categories (expected growth 30 percent or more) is primarily found in home and personal care.

Somewhat flat growth (expected growth 10 percent or less) is expected to be product categories that have filled internet shopping carts for the most years.

These categories include products such as PCs, software, and books.

*Sources: Jupiter Research, BizRate, eBuzz.biz