Study Says E-commerce will grow 17% to $204 billion in 2008

Despite the economic slowdown, e-commerce sales, including event and movie tickets will grow nearly 17% from $175 billion in 2007 to $204 billion this year, according the first installment of the three-part State of Retailing Online 2008 report from research and consulting firm Forrester Research and Shop.org, the online retail arm of the National Retail Federation, a merchant trade association.

E-commerce sales also grew 17% from 2006 to 2007, the report says. Online sales will account for 7% of U.S. retail sales this year, up from 6% last year, the report says.

“Even in 2008, when retailers in general are expected to encounter challenges with growth due to uncertain or adverse economic circumstances, we project that online retail will continue to erode market share from other channels,” the report says. Forrester has reported separately that, although 61% of U.S. online shoppers expect the economy to worsen in the next year, 85% say they will spend the same or more online in the next year.

Half of online retail sales in 2007 came from five categories: apparel, accessories and footwear; computer hardware and software; autos and auto parts; consumer electronics; and home furnishings. The apparel category, which surpassed computer gear for the first time in 2006 as the top online sales category, is projected to hold onto the top spot again in 2008, accounting for $26.6 billion in sales, up 17.2% from $22.7 billion last year.

53% of marketing budgets will be devoted to online customer acquisition and 21% to online tactics for retaining customers, according to the survey of 125 retailers. Search engine marketing is the leading acquisition method, accounting for 35% of new online customers, followed by organic traffic 18%, affiliate programs 7%, e-mail to prospecting lists 7%, and comparison shopping sites 5%.

Other highlights of the report include :

  • The retailers surveyed manage an average of 31,839 paid search terms, on average pay 50 cents per click for a search ad and realize $8.47 in revenue per click.
  • Cost per order for online banners averages $84.21, compared with $50.74 for deals with traditional web portals, $50.11 for social network ads, $32.12 for e-mails to prospecting lists, $27.45 for comparison shopping engines, $19.33 for paid search, $12.24 for affiliate programs, $8.63 for natural search and $6.85 for e-mails to house lists. The average order value is highest for social network ads at $168.80, followed by online banners $133.01, affiliate programs $122.51 and e-mails to house lists $120.27.
  • While 85% of retailers say they offered free shipping on certain orders, last year, only 33% plan to increase such promotions this year. 57% plan to increase use of offers in outgoing packages from web orders, 45% online-only sales and 40% gift with purchase.
  • Source: http://www.internetretailer.com/dailyNews.asp?id=25984

    Enhancements and Improvements

    E4E is in orbit

    It’s been some time since I last posted on the E4E Blog so I thought I would take a minute to update everyone on the status of E4E. First off, we have lowered the pricing schedule for the 3 E4E product plans for the next 300 clients. With the success of E4E Beta to this point, surely this special will not last long. Be sure to take advantage of this special while you can. Lower pricing means more revenue profits for you!

    Now for the REALLY exciting stuff…..

    We just finished Version 1.0 of the Style Changer, Site Properties, and the Site Editor. These new enhancements give you the next level of control over your E4E Amazon.com Storefront site. With the Style Changer, you can change your site style to one of any of the available pre-designed styles at will. The site will be updated in real time and the new style is implemented immediately. The Site Properties function allows you to edit your site name, site url, Amazon Associates ID, Google Adsense ID, contact information and more. The Site Editor - which I am personally excited about, not only allows you to edit the content on home page as well as other customer service pages, it also allows you to add or delete custom pages at will. This feature give you the power to add custom content at will so you can keep your site looking fresh at all times. These features are designed to give you more control over your success and offer you additional means to increase your Amazon.com Associates commissions.

    Of course, we are still working away at the next batch of features which we anticipate will knock your socks off! Be sure to lock in at this special pricing while you can. The value is incredible… especially when you consider what features will be released over the coming months.

    Alex
    E-commerce for Everyone

    Status of E4E…

    In the past couple of weeks, E4E Beta has been launched and with little surprise, there has been a great response. We know that there is still a bit of work before Version 1 is released but it seems as if Beta is going strong. Currently, we are working on a few new tools for the E4E back end of the service. These new features have the E4E team really excited. Here is a little list of what you can expect in the next few weeks:

    • A WYSIWYG / HTML editor  to customize your content on key pages of the site
    • The ability to add custom pages to your E4E site
    • A nifty “refer a friend” feature that offers free service in exchange for referring a new subscriber
    • A site properties feature where you can edit key information (such as site name, contact info, Google Adwords account info, etc) on one page which will be implemented site wide on the fly
    • A style changer where you can change the look of your site to any one of the many E4E web site styles whenever you like

    Keep an eye peeled for these feature and as always, be sure to check out our Specials page for current promotions and savings for your new site.

    Alex
    E-commerce for Everyone

    Countdown to launch…

    E4E is taking off

    Time is flying by and the official launch of E-commerce for Everyone is just around the corner. We are really excited to be able to offer this new Amazon.com storefront solution to the world at such an affordable price. E-commerce for Everyone was originated from the belief that anyone and everyone should be able to own and operate a profitable e-commerce business without needing to have in depth knowledge of computer programming and graphic design. E4E was created to be able to offer a turnkey solution for those wanting to operate an online business while establishing a brand they would be proud of. E4E’s founders wanted to ensure that everyone would have access to the same quality service backed by a knowledgeable technical support staff while having access to some of the best graphic design services - all at an unbelievably low price. In addition, E4E will have additional services that you can take advantage of that will help you market your E4E site and implement vital customer relationship strategies that will assist in the building of a loyal customer base that will continue to bring in commissions for years to come.

    Things are truly exciting around here and in the next several days, E4E will be officially available to the world. We look forward to working together with you to establish and maintain your profitable internet e-commerce business.

    Alex
    E-commerce for Everyone