The U.S. online shopping world's biggest day is here, but will strong web sales on Black Friday and Thanksgiving cut into Cyber Monday's take?
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.