1999 Net Revenue May Exceed $36 Billion

Share this article:
Revenue from online retailing is expected to grow 145 percent in 1999, topping $36 billion by the end of the year, according to a report released yesterday by business strategy firm Boston Consulting Group.


The agency studied actual 1998 retail revenue data from 328 cyber-retailers to determine growth in the industry last year as well. It found online revenue reached $14.9 billion last year, accounting for about 0.5 percent of all retail sales. Online orders rose 200 percent and the ranks of online Net shoppers jumped 300 percent.


Boston Consulting carried out the study for Shop.org, a trade association for online retailers. The 1999 market projection was based on a study of Shop.org members, plus data from publicly held Net companies and estimates on the size of other retailers.


The report said the majority of online retailers also operate in brick-and-mortar, catalog and other channels. However, so-called "pure-play" retailers who sell only through the Web dominate some product categories such as books, music and videos, automotive goods and the collectibles sold through auction sites.


Retailers plying their wares in both the traditional and virtual channels dominate online sales of electronics, apparel and computers; they also dominate online stock brokering. The report cited existing brand recognition as the main advantage enjoyed by multi-channel players.


The report found that Web-only retailers typically pay $42 for each customer, considerably higher than the $22 multi-channel merchants spend for each patron.
Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Hallmark Takes Baby Steps to a New Brand

Hallmark Takes Baby Steps to a New Brand

The company relied on digital to get its growing children's apparel brand off of the ground.

One Third of Americans' Social Media Time Is Spent on Facebook

One Third of Americans' Social Media Time Is ...

Pandora, meanwhile, attracts more user time but far fewer digital advertisng dollars, says a study.

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

Robert Thomson warns the EU that an antitrust deal with Google will lead to a decrease in competitive options for marketers and an increase in piracy.