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 © 2024 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
Retailer Tips for STI Awareness Month
Adult retail isn’t all fun and flirty games. We love helping folks navigate pleasure and desire for themselves and with their partners, but brick-and-mortar staff are also on the front lines for myriad educational opportunities — especially in April, which is Sexually Transmitted Infections Awareness Month.
Strategic Upscaling of Non-4K Content
If content is king in adult, then technical quality is the throne upon which it sits. Technical quality drives customer acquisition and new sales, while cementing retention and long-term loyalty.
A Look at the Evolution of Pleasure-Enhancing Pumps
Even though the pleasure industry is famously innovative, most “new” products are still ultimately reimagined versions of previous ones. They expand on the core idea by introducing a new feature or solution that takes the original concept to a new level of sensation, functionality or convenience.
AEBN Reflects on 25 Years of Innovation, Success
Reflecting on 25 years of success, AEBN honchos Jay Strowd and Bishop Wages harken back to 1999, when the company that would become a storied brand first broke away from an online DVD/VHS mail-order business to evolve as an entity solely dedicated to streaming video.
Platforming the Pleasure Industry With Our Collective Voice
Very early in my business career, I learned not to mix business with politics or religion. This was a foundational tenet that just made sense. For much of my career, that was easy. However, it has become increasingly difficult to avoid bringing politics into business.
WIA Profile: Jessica Jasmin
Jessica Jasmin’s heart has always been in production, but there were a number of stops along her route to becoming creative director for Gamma Entertainment.
The ABCs of POS Systems for Adult Store Owners
What point-of-sale system is best for your adult business? Figuring that out can be frustrating, since the numerous options and acronyms don’t easily translate into a clear checklist of features and benefits you can weigh.
Hayley Davies: From New Zealand Math Nerd to Fast-Rising Adult Star
Growing up, New Zealander Hayley Davies was a proud nerd who participated in mathematics competitions against students from much higher grades. Her good looks turned out to be a kind of secret weapon, causing peers to underestimate her intellectual acumen.
How Pleasure Brands Can Leverage Strategic PR Amid Mainstream Media Layoffs
Thanks to the mainstreaming of intimacy products, pleasure brands can now gain broad exposure in all kinds of publications, from Cosmo to Allure to Good Housekeeping. Unfortunately, the economic uncertainty dominating the world and challenging businesses has hit the media sector particularly hard.
Elly Clutch: English Teacher Turned Creator Shifts Into High Gear
Growing up, Elly Clutch often felt a bit strange and out of place. In fact, that feeling has stuck with her for as long as she can remember. Nevertheless, she has grown a lot of confidence since her youth, and now knows that being an outgoing and fun-loving nerd makes her uniquely memorable.
