New York, NY, February 6, 2006--JupiterResearch, forecasts that online retail spending will increase from $81 billion in 2005 to $95 billion in 2006, and will grow to $144 billion in 2010.
According to a new report entitled: "U.S. Online Retail Forecast, 2005 to 2010," authored by JupiterResearch Analyst Patti Freeman Evans, the key driver of online sales growth beyond 2006 will shift from obtaining new buyers to increasing the spending of existing buyers. JupiterResearch is a leading authority on the impact of the Internet and emerging consumer technologies on business.
By 2010, 71% of online users will use the Internet to shop compared to 65% in 2005. However, online retailers will find it difficult to find new non-buyers to convert. Online retailers will rely heavily on existing online shoppers to spend more than compared with previous years.
"Retailers can expect to be dealing with an increasingly experienced population of online shoppers," said JupiterResearch Analyst Patti Freeman Evans. "The online retail environment is maturing, and online buyers have become more savvy about finding free shipping and deeper discounts," added Freeman Evans.
The report also reveals that the Internet will influence nearly half of total retail sales in 2010, compared to just 27% in 2005. This projection combines total sales transacted online with those carried out off line but encouraged by online research. These offline sales will grow at a faster rate than online sales over the next five years, indicating both the need and opportunity for multichannel retailers to integrate their offerings. Driving this growth are the 85% of online shoppers who said they used the Internet to research their offline purchases in 2005.
"The fact that the Internet will influence nearly half of total retail sales in 2010 is staggering statistic for a shopping channel that will have been around for little more than 15 years by 2010," said David Schatsky, senior vice president of research at JupiterResearch. "Our research shows that this presents an enormous opportunity for retailers that embrace a well-integrated multichannel operational strategy," added Schatsky.
