Retail sales online offer unparalleled opportunity for start-up businesses and for added growth for existing retail businesses.
But are online sales, the World’s Greatest?
Check out some of these trends, then you decide.
Even in the midst of one of the toughest retail environments in decades, online retail business is poised for solid growth. Forrester Research says online retail business will grow 10 percent each year for the next 5 years. And experts expect online retail sales to hit a quarter of a trillion dollars by 2014.
At the same time, the National Retail Federation is expecting about 2.5 percent growth for all retail sales in 2010. With 4 times the expected overall growth, the online retail business looks strong.
Good Times Now
Predictions of what will occur in the future aside, what is happening right now in online retail is impressive.
Estimates are that in 2009, sales from online businesses hit $155.2 billion. During the holiday season alone, retail business on the Internet topped $44 billion, a 17 percent increase over the previous year.
Watch the Hidden Trends
Whether you are considering an Internet retail business start-up or you already own a retail business and are considering expanding to the Web, it will pay to look at the hidden trends.
By 2014, Forrester predicts that over half of all retail sales will be influenced by the Internet. That means if your retail business is not online, you could be missing out on the chance to attract 1 of every 2 potential customers.
Staying the Course
Some entrepreneurs grow frustrated if their online business does not take off immediately.
But we caution against giving up too soon.
Just think of Amazon.com, the pioneer in online retail. Amazon made its first sale in 1995 and did not post a profit until 6 years later.
Your start-up Internet retail business would not take that long to pay off. But the point is an online business is like other businesses in that they all require work and commitment.
The potential for great reward is there, but you need to understand that all your work is worth the effort.
Share the Wealth
It does not really matter what segment of the retail business you are in.
Electronics? Sales grew 17 percent in 2009 to $13.6 billion. Clothing? The 2009 total of $27 billion in sales was up 17 percent as well. Computers? They also posted $27 billion in sales, up 7 percent.
The following figures might make the case as to why online retail business is the worlds greatest.
Just take a look at the room for growth. In electronics, for example, that $13.6 billion in sales only represented 14 percent of total electronic sales. For clothing, $27 billion is only 10 percent of retail sales. Think how much room there is to grow.
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