Thursday, June 02, 2005

Online Sales on the Increase

According to Internet Retailer, online sales were up 21% for the week ending May 1 over the corresponding week a year ago, reaching $1.3 billion from $1.07 billion, comScore Networks Inc. reports.By comparison, total retail sales for the week ending April 30 were up 4.7% from the same week a year ago, reports ShopperTrak’s National Retail Sales Estimate.Online travel sales for week ending May 1 were up 37% to $1.12 billion from $818 million in the corresponding week a year ago, comScore reports. (Source: SubmitNet newsletter).

Before online retailers start blowing their own trumpets, it’s useful to realise that online sales remain small compared to high street sales and that many issues will have to be resolved before online retailing can truly compete with offline retailers.

In particular, concerns about CC fraud are holding potential customers back from using plastic over the Net. In response, many e-retailers have imposed draconian measures to ensure purchases can be made safely. But these measures often make the payment process a lengthy and frustrating experience. And frustrated customers are unlikely to come back any time soon…


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