The Buoyancy of US Retail E-Commerce [4/17/2008]

It seems that the recession hasn’t hit online retailers. According to a recent study conducted by Forrester Research, The State of Retailing Online 2008, e-commerce sales will reach $204 billion in 2008, a 17% increase over last year

Why E-Commerce is Growing

In a word, consumers; but consumers who use the web in very different ways. For example, the study found that more affluent consumers used the web for convenience, not as a price-checking system. Less affluent shoppers on the other hand tend to use the web to search for the best deal.

How Internet Marketers Can Capitalize on Both Audiences

While their reasons for shopping online are different, there’s gold to be mined from each group. By parsing this information, Internet retailers can find out how to market to each group individually to maximize profits.

Retailers seem to have already figured out that paid search is the easiest and most effective way to reach new customers. Therefore, it is no surprise that 79% will make it a greater priority this year or that 90% said they had plans to use pay-for-performance search placement.

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