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 © 2026 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
Verifymy's Emma Robert-Tissot on Putting People at the Heart of Online Safety
Warm, friendly and always happy to help, Emma Robert-Tissot has a gift for making even the most complex corners of online safety feel approachable.
How Native Spanish Speakers Help Pleasure Brands Expand Across Latin America
Latin America's Spanish-speaking markets represent an exciting growth opportunity for the pleasure products industry. Across the region, conversations about sexual wellness are becoming more open, specialty retailers are expanding their assortments and shoppers are seeking products that reflect their lifestyles and values.
How Sexual Wellness Brands Can Use Emotional Marketing to Build Loyalty
Adult businesses have never had access to every marketing tool available to mainstream brands. Platform rules, advertising restrictions and content policies can limit the options for sex toy manufacturers and retailers. Add a difficult economy and more cautious consumers, and relying on tactics that worked a few years ago may no longer be enough.
WIA: Kristin Zuri-Godskind Draws on Deep Expertise to Elevate Sportsheets
After 18 years in the pleasure products industry, Kristin Zuri-Godskind has experienced the business from nearly every angle. Her career has taken her through retail, merchandising, management, distribution, sales, product education and manufacturing, giving her a perspective shaped as much by the sales floor as by the relationships she has built along the way.
Why Retail Expertise Is Essential When AI Tools Analyze Store Data
Somewhere in one of our stores, someone scanned a barcode into a quantity field. The number entered was 8,388,607. At $19.99 per unit, that made a single line item worth roughly $167 million. The number was so large that the import failed immediately.
Why Adult Retailers Need Better Training on Disability, Chronic Health
Every customer who walks into an adult store brings a different body, comfort level and set of needs. Retail staff already know how to ask the basics: Do you prefer vibration or suction? Are you using water-based or silicone lubricant? Do you have a latex allergy? What size are you comfortable with?
YourVids' Gino on Listening, Learning and Putting Creators First
Get Gino talking about the work creators pour into their careers, and his passion quickly becomes contagious. He deeply appreciates the people powering the business and has firm ideas about what they deserve in return.
Vendo CEO Mitch Platt Reflects on 20 Years of Lessons and Evolution
More than 20 years ago, three entrepreneurs in Barcelona began gathering over beers to pitch, dissect and routinely destroy one another's business ideas. The ritual was simple: One person arrived with a concept, while the other two tried to expose every weakness. Any proposal that survived earned another look. Most did not.
Abby Rose on Camming, Connection and Creative Chaos
Abby Rose has mastered the art of viewing life through rose-colored glasses, finding the good in even the most challenging circumstances. With the bubbly charm of Elle Woods and the steely determination of G.I. Jane, she pairs a resilient spirit with a deep love for bringing people together.
How to Avoid the Hidden Risks of AI-Generated Legal Documents
Artificial intelligence can write a contract in seconds, but that does not mean it can write the contract your business actually needs. Across the adult industry, operators, creators and producers are increasingly using generative AI to prepare model releases, performer agreements, privacy policies, takedown notices, employment documents and responses to regulators. The appeal is obvious: Legal work is expensive, AI is fast and the resulting document often looks impressively professional. That polished appearance is exactly what makes the practice dangerous.
