Reports of the death of online retail are greatly exaggerated

[May 23rd 2001]

According to Jupiter Media Metrix online retail sales continue to grow, despite widespread skepticism over the sector's health. Although the pace has eased, U.S. online retail sales will still reach $104 billion in 2005 and $130 billion by 2006, up from $34 billion in 2001. This compares to Jupiter Media Metrix' original forecast of $36 billion in 2001 and $118 billion in 2005.

"The doom and gloom over the state of online retailing has been greatly exaggerated," said Heather Dougherty, Jupiter analyst, from the Jupiter Media Metrix Retailing Forum. "While short-term market factors have slowed the pace and shifted the playing field toward multi-channel retailers, the long-term outlook is still positive. Retailers and their constituents must not lose sight of the fact that the online purchasing population continues to grow and their comfort with the channel continues to increase."

Additional data released by Jupiter Media Metrix :

• 52 percent of the online population will be making retail purchases online by 2002, up from 40 percent in 2000. That figure is expected to grow to 63 percent by 2006.

• Most U.S. online buyers are not hesitant to register and give out personal information to retailers: 70 percent register to receive e-mail for new products/special offers; 68 percent register prior to making a purchase; 50 percent register to store personal information on the site; and 41 percent register to receive physical mail.

• E-mail marketing resonates well with online buyers: 85 percent of online buyers say they are very or somewhat more likely to return to a site after receiving an e-mail message from a retailer.

Links
Jupiter Media Metrix		http://www.jmm.com