Meanwhile, PayPal acquires mobile payments firm Paydient.
ComScore Networks is predicting total web sales during 2006 will exceed $100 billion because of four key driving forces. The research firm says non-travel online spending in the first quarter hit $23.9 billion, a year-over-year growth rate of 22%.
Total e-commerce sales will pass $100 billion in 2006, according to comScore Networks Inc. The research firm says non-travel online spending in the first quarter of 2006 hit $23.9 billion, a year-over-year growth rate of 22%. By comparison, the U.S. Department of Commerce reports total non-travel online sales reached $24.5 billion for Q1 2006.
“Looking at last year’s numbers, if sales continue to grow this year by at least 20%, the industry will crack the $100 billion mark,” says Gian Fulgoni, chairman of comScore Networks.
Fulgoni says the factors that will drive annual Internet retailing sales past $100 billion this year are as follows:
- People are continuing to become more comfortable with buying products online; and as a result, more shoppers are buying bigger ticket items.
- More Internet users are switching from dial-up access to broadband; this makes shopping online much easier.
- Multi-channel retailers are doing a better job integrating the Internet in their business strategies; a steadily increasing number are putting more efforts into and products on the web.
- Search engines and price comparison sites are having an increasingly larger impact online and offline; they are making it easier for shoppers to find exactly what they want at the best price.
Compared with the same period last year, year-to-date web sales of home and garden products are up 40%, apparel is up 40%, toys and hobbies are up 40%, office supplies are up 30%, and electronics are up 22%, according to comScore data.