The reduced price of going online coupled with growing confidence in online web stores have sent online sales figures soaring over the past few years. Each year, online sales figures hit a new high. It seems the consensus is,shopping on the worldwide web 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. By the fourth quarter of 2004, online retail sales accounted for 26% of total retail sales. 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 increase over the previous year and 23.1 percent of the total retail sales for the year.
It has long been a belief that people 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 reviews, consumers are leaning more and more towards online research to make sure that they buy the right item 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 buying on the web has been boosted by the deals offered by retailers, including improving after-sales service and offers on home delivery of products. Also, as major high street companies launch online versions of their brick and mortar shops, where people can access the same quality and pricing without the headache of driving all the way to the store and fighting through the masses battling for the same products.
If you still need proof that the world is moving towards online retail in a big way, consider this:
According to The UK Office for National Statistics online shopping in the nation is likely to continue its upward trend, accounting for £162 billion in revenues by 2020 and contribute 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
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