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September 17, 2008

E-tailers See Strong Gains In Year Ahead

Although it continues to be a challenging market for brick-and-mortar retailers, online retailers expect significant growth over the next year, according to a new survey released by the National Retail Federation’s Shop.org.

E-tailers expect to see an annual average growth rate of 25% as conversion rates continue to climb, according to the survey. Convenience and consumers’ increased comfort with shopping online have been cited as reasons behind the growth.

E-tailers did note that their margins are lower than traditional stores since their operating expenses, which include free shipping and fulfillment, are high.

Posted by Blacks on September 17, 2008 11:08 AM

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