Results of a survey by Forrester Research and Shop.org show an increase in online sales by US retailers’ of 11 percent on average in the first quarter of 2009.
58 percent of the 80 companies considered reported increased sales during the first quarter compared to their 2008 Q1 figures. An analyst at Cambridge, Massachusetts-based Forrester Research appeared to credit improving consumer confidence levels combined with perceived bargains generated by current price competition for sales.
The survey may indicate how major e-commerce retailers are coping with the times; following what many say was the most disappointing holiday retail results in over 40 years. The report stated those companies with online annual sales greater than $250 million were actually enjoying the best results, so all eyes will be watching Amazon.com.
58% of surveyed companies answered that their Q1 Web sales rose year-over-year for the first quarter, 44% reported a more than 10% increase, 14% posted a sales increase of up to 10% and 13% reported flat Web sales. It was further revealed that 29% of merchants actually experienced a drop in sales, including 18% of companies reporting that Q1 online revenue dropped by more than 10% compared to 2008 results. Average growth for merchants across all categories was 10.8%.
The survey was conducted on April first and second and was based on inquiries by Forrester and National Retail Federation trade group division Shop.org, to share their Q1 Web sales figures. The average online annual revenue of respondents was $116 million, and we hope the reporting of results like these signals an improvement in overall economic health in spite of daily doom and gloom reports on other indicators.
Also in the news this week, InternetRetailer.com is reporting that most retailers plan to stand firm or increase resources for online retail expansion this year.
In spite of the challenging economy, 70% of US retailers intend to invest the same or somewhat more in e-commerce in 2009 over 2008 figures because it is the fastest-growing area of their businesses – based on The E-tailing Group 8th Annual Merchant Survey.
Retailers are seeking to replace now elusive brick and mortar sales with increased online sales and indeed are looking outside North America as well. Feeling distinct performance pressure like never before from investors and market watchers, executives are scrambling to find profits while competition online becomes more fierce and savvy shoppers demand more and more from the experience.
Of the 190 retailers surveyed, 34% expect their 2009 versus 2008 Internet revenue to be down or flat. This is important because historical Web sales have consistently delivered year-over-year growth. 66% of merchants responded that growth should continue this year, with 39% of these merchants predicting their revenue will increase between 1% and 15%.
Retailers are increasingly turning to technology to improve their sales. 44% said they anticipate changing e-commerce platforms within three years; while 42% report they have no plans to make such a change. However, given current resource constraints and economic instability…We are all hit by the challenge of programming resources; a worldwide dilemma for everyone. So while an E-tailing Group executive concedes platform upgrades are on many wish lists, actual strides may be limited to refinement of navigation, site search and site tweaks! The dominant players coming out of this recession will be those who successfully infused their online customers’ shopping experience with relevant and profitable Web 2.0 solutions.
The E-tailing Group foresees minor site modifications will be the order of the day for the time being – and let’s see how that goes as consumers now expect every online experience to be as exciting as their favorite reality TV show or American Idol, and every bit as interactive.
Sources and Further Reading on Related Topics
Bloomberg.com
Forrester Research
Click here to mail me for sensible processing options to boost your bottom line and opportunities for branding and marketing exposure.
Click Here for Additional Help Starting or Improving Your Online Business
Online Sales Growth
Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.
More Articles
Tips for Upgrading Retail Merchandising With AI
When an order from CalExotics arrived at one of our stores in Livermore, I wanted to help build the wall. After reorganizing it, I took a picture and asked ChatGPT what it thought of the wall. First, it noticed a gap in the top row and recommended adding a toy there or changing the spacing. Then it said, “I noticed there are some toys on the right that aren’t in boxes. You should take those down or put them in boxes.”
WIA Profile: Taylor Moore
With a 70-person team and a growing slate of tools for content creators, the Teasy Agency has developed a reputation for putting talent first. That commitment owes a lot to co-founder Taylor Moore’s own experiences as a cam model.
How to Get Shoppers in the Mood for Pleasure During the Holidays
Carolers may be singing about tidings of comfort and joy, but this time of year, the holiday rush, social fatigue and long to-do lists can leave many people feeling a bit short of both. Fortunately, consumers are now more willing to invest in self-care — and to expand their understanding of that category beyond cocoa and cozy blankets, to include sensual care and pleasure.
Falcon, NakedSword Deliver Cozy Chaos and Holiday Carnality in 'The Push It Inn'
What do the holidays mean to you? Kitschy decorations? Mariah Carey? Cheesy Christmas movies?
How Small Stocking Stuffers Lead to Big Holiday Success for Retailers
With the holiday rush fast approaching, here’s a tip for retailers aiming to be among this year’s big winners: Think small.
Practical Tips for Bountiful Holiday Streaming
As the weather gets chilly, people spend more time indoors and online. Add in the stress of the holidays, and you’ve got fans trawling through cam sites seeking escape and a dopamine rush. That makes November through January a definite “go time” for online creators.
Retail Pulse: How Ecommerce Brands Are Driving Clicks With Creative Marketing
Running an online store for adult products is a unique challenge. Ads get flagged. Payment processors label businesses as “high risk” and shut down merchant accounts with little warning. Yet despite these obstacles, entrepreneurs are creating thriving online communities, driving consistent traffic and helping sexual wellness brands find their audience.
Hope Heaven on Turning Every Mile Into a Moment of Victory
Under the bright Amsterdam lights, Hope Heaven heard her name and froze for a beat. Then she stood, crossed the aisle in a body-skimming black cutout dress and accepted the Euro XMAs trophy for Female Streamer of the Year.
Retail Pulse: How Distributors Are Elevating Sales Through Education and Curation
Once seen mainly as logistics providers, distributors have progressively taken on additional and complementary roles in the pleasure industry: as educators, marketers and even brand builders. Distributors introduce brands to consumers all over the world, applying their own unique strategies to selecting the best products for their customers in various markets.
WIA Profile: Cathy Turns Creator Platform Experience Into a Model-First Playbook
As both a model and industry executive, Cathy lives in two worlds at once. “Since I do both things, I can act as the liaison between the model community and the rest of the SextPanther team,” she tells XBIZ.
