Conventional Retail Outperforms Internet Retail

Although consumer e-commerce tripled this year, topping $11.9 billion, due in part to the more than $3.35 billion spent during the holiday buying season, many online shoppers were left frustrated and disappointed.

According to Enamics, an Internet consulting company, 25% of online retailers experienced failure as a result of inadequate systems infrastructures, distribution, branding and marketing, and customer service.

Enamics reports that only 65% of orders handled by pureplay Internet retailers were delivered correctly and on time. In contrast, the "click and mortar" companies that do business both online and off, delivered orders correctly 80% of the time.

"In the first big test of 'Net commerce, many companies barely earned a passing mark, and were propelled by consumers eager to benefit from the ease and efficiency of ordering goods and services online," says Faisal Hoque, chairman and CEO of Enamics. "While Internet commerce showed phenomenal growth this year, most efforts were highly unstructured."