A lot of attention has been given lately to the amazing double digit growth of eCommerce in the US.

Forrester Research has released a couple of critical reports that explain this phenomenon:
- State of Retailing Online 2008 (in association with Shop.org)
- U.S. E-Commerce Forecast: 2008 to 2012

Online retail will increase 17% in 2008

Forrester sets the trends for the next 5 years with online retail sales in the US of:
- $204 billion in 2008 (+17%),
- $235.4 billion in 2009 (+15%),
- $267.8 billion in 2010 (+14%),
- $301 billion in 2011 (+12%),
- and $334.7 billion in 2012 (+11%)

“E-commerce continues its double-digit year-over-year growth rate, in part because sales are shifting away from stores and in part because online shoppers are less sensitive to adverse economic conditions than the average U.S. consumer” says Sucharita Mulpuru, the Forrester analyst for the U.S. E-Commerce Forecast report.

Online sales will account for 7% of U.S. retail sales this year, up from 6% last year, the report says. Retail sales at physical stores are expected to grow at an annual rate of 2.6% from 2007 to 2012, while online sales are expected to grow approximately 14% annually for the same period.

Consumers embrace online retailing

According to Forrester, 88% of U.S. online consumers say that they have bought something online in the past. They tend to shop more and more online (when possible) rather than shopping in physical stores.

“Consumers do exhibit loyal behavior to the [online retail] channel, provided that retailers are able to meet and exceed customer expectations” Mulpuru said. “By focusing more energy on accurate product information, improved imagery/photography, and flexibility in payments and returns, and by reducing the hurdles of shipping costs, online retailers can go a long way in currying favor with shoppers.“

Trends for 2008 in the main online retail categories

Almost all retail categories are expected to sell a high percentage of goods over the Web in 2008 compared to 2007:
- Apparel +17%
- Computers +15%
- Autos +15%
- Event tickets + 31%
- Toys and baby products +22%
- Home furnishings +11%
- Jewellery +19%
- Office supplies +21%
- Sporting goods +17%

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