Online sales will exceed $200 billion in 2006, up from $100 billion in 2003, according to a new report, “The 2006 State of Retailing Online”, from Shop.org and Forrester Research.
In fact, this 20 per cent growth in online sales to $211.4 billion in 2006, up from $176.4 billion in 2005, is seen by Shop.org as the true growth engine for the overall US retail industry. Most of the 174 retailers in the survey promoted multi-channel sales, with 79 per cent pricing across channels and almost half (46 per cent) offering gift card purchase and redemption online and in-store.
For payment security, 63 per cent of the retailers required card-verification value (CVV) codes at checkout, with 25 per cent accepting private-label cards, 12 per cent email payments, 9 per cent e-checks and 7 per cent, store credit. Thirty-three per cent supported the collection of loyalty points across channels while 26 per cent provided online access to in-store product information. Essentially, retailers are integrating sales channels to benefit the value chain, given that 22 per cent of offline sales are influenced by the web, which is invaluable in attracting new customers.
Retailers are simultaneously integrating their store sales with telephone and catalog ordering in an effort to extend consumers’ comfort with web-based remote ordering, to the other channels. With many now developing long-term technology budgets and strategies, Shop.org and Forrester believe the next five to ten years of online retail will be much more innovative than previously. For example, in-store kiosks and the web will be used for cross-promotions and coupon issue while allowing customers to use the kiosks to order products online if they are not available in-store.
