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ONLINE RETAIL SALES CONTINUE TO GROW AND MATURE
 Miami, FL (July 6, 2006)— So do you think being online is worth it? Are you concerned that "people buying online" is simply a fad? Are you worried that all of that upfront money you spent in building your web storefront and marketing efforts may not be worth its investment? Think again! And remember, building any business should be gauged by both short-term and long-term goals and laying the groundwork for the future.
The future of online retail = Don’t worry.
In 2005 3% of all retails sales were made online totaling approximately $110 billion from almost 118 MM online shoppers. The trends continue to show growth in online sales, although the annual growth rate will begin to slow, according to a new report from eMarketer. "From 2001 to 2005 online sales rose by an average annual rate of 26%, but we forecast that over the next three years total web sales will increase by only around 18% to 20% per year," says eMarketer senior analyst Jeffery Grau. That still equates to approximate online sales of $132 MM in 2006, $158 MM in 2007 and $190 MM in 2008.
The online retail market also will slow to a more moderate growth rate in the foreseeable future, according to eMarketer. "This is not a cause for concern, but rather a sign of a maturing e-commerce market," Grau says. There will be about 133 million online shoppers in the U.S. by 2009, up from about 118 million today. In 2009, the average online shopper will spend about $1,512 per year on various online purchases, compared with about $877 in 2005, according to eMarketer.
That is still a lot of shoppers and with the proliferation of new handheld devices, which access the web easily, and the growing trends of the 25-35 year old demographic using these devices the future remains robust for online sales. ComScore Networks Inc., expects U.S. online sales, excluding travel, to increase by about 24% in 2006 to $102 billion from sales of $82.3 billion in 2005.
Maturing Marketplace = You should be online!
 Some industry insiders believe that the slower growth rates, as compared to 30-50% growth rates from prior years, is expected and that retailers are now allocating more resources to retaining existing customers and utilizing better marketing methods to sell more products to these customer than trying to obtain new customers.
So who is the best customer for most online business to retain? Today, your average online shopper is female, 44, with an annual household income of about $68,000, according to research from eMarketer. She has a college degree, uses mostly a broadband connection and spends more than $360 per year online. “Online buyers are four years younger than the average consumer and have an average household income that is 30% higher,” says Grau. "They also like to shop online with 69% having made an online purchase in the past three months." But the future sees the younger generation as the best target audience for your future growth.
Laying the Groundwork for the Future = By 2010, 88% of Young Online Adults
Make Online Purchases
Approximately 31 million people between 25 and 34 will make online purchases by 2010, representing about 88% of the online young adult population, according to a new report from JupiterResearch.
Total online retail spending of this demographic may more than $28 billion in 2010, representing about 20% of overall online retail spending, according to JupiterResearch, with an increase to $902 per buyer in 2010, up 46% from 2005.
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MerchantAdvantage Wrap-up:
So, if you are worried that playing in the online shopping marketplace is not worth your time, think again and ensure that your online marketing strategy evolves with the maturing marketplace of retaining and servicing customers, once you obtain them.
It is not such a bad proposition considering that over a time you can easily have between 1,000-10,000 customers in your data base, if not more, and how often in the life of your business have you that type of database to market to everyday?
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About MerchantAdvantage, LLC
MerchantAdvantage (merchantadvantage.com) is an ecommerce software solutions company committed to championing and helping the small to midsized online ecommerce Merchant address complicated online issues and take a systematic, controlled and proactive approach to online product marketing. MerchantAdvantage provides long-term, cost effective software tools that enable an online business to grow by reaching the widest audience possible via online, broadband, and wireless devices. MerchantAdvantage’s applications are designed to thoroughly connect the online retailer to their marketplace partners in a seamless motion of communication allowing Merchants to take control of their ecommerce channels, marketing strategies, IT solutions, and online order management demands. These software tools specifically help ecommerce retailers bridge the gap created by non-standardized data feeds to various online market places, shopping comparison sites, and other online shopping destination sites. MerchantAdvantage is changing the macrocosm of ecommerce by staying ahead of the curve in providing business solutions to the growing online retail marketplace: We’re here because America’s commerce future is online.sm
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