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Jupiter Predicts 78% Online Spending Growth
JupiterResearch forecasts that online retail spending will increase by 17% in the next year - from $81bn in 2005 to $95bn in 2006, and by 78% in the next five years, growing to $144bn in 2010.
The US Online Retail Forecast, 2005 to 2010 by JupiterResearch Analyst Patti Freeman Evans, states that the Internet will influence nearly half of all retail sales in 2010, compared with just 27% in 2005. This includes offline sales 'encouraged by online research' as well as standard online transactions.
David Schatsky, Senior VP of Research, describes this as a 'staggering statistic for a shopping channel that will have been around for little more than 15 years by 2010'.
The report also predicts that the key driver of growth will shift from obtaining new buyers to increasing existing buyers' spending. It estimates that, by 2010, 71% of online users will use the Internet to shop compared with 65% in 2005, but that online retailers will find it difficult to find new non-buyers to convert.
Freeman Evans explains: 'Retailers can expect to be dealing with an increasingly experienced population of online shoppers. The online retail environment is maturing, and online buyers have become more savvy about finding free shipping and deeper discounts.'
More details of the report are online at www.jupiterresearch.com
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