[Previous entry: "You Get Power by Being Generous --- in the Right Way."] [Next entry: "More Businesses Turning to the Internet for New Business."]

05/24/2005: "Online Retail Sales Are Expected To Rise to $172 Billion This Year."

U.S. online retail sales are expected to climb 22% to $172 billion this year, spurred by growth in categories such as cosmetics and jewelry, according to a new report.

The largest category of online sales will be travel, where sales are projected to grow 20%, to $62.8 billion according to the study sponsored by Shop.org and conducted by Forrester Research, a Cambridge, Mass., market-research firm. Shop.org, a unit of the National Retail Federation, is a Washington, D.C., association for online retailers.

Excluding travel, Internet sales are projected to reach $109.6 billion this year, or 5.5% of all retail sales, from $89 billion, or 4.6% of retail sales in 2004, according to the report.

The report projects that growth in online sales will slow as the total increases. The 22% projected growth rate for this year would be down from 24% last year and 51% in 2003, the report says.

Online sales will grow fastest in categories such as cosmetics, jewelry and flowers, the report predicts. All remain relatively small. Online sales of cosmetics and fragrances are projected to rise 33% to $1.6 billion; flowers, cards and gifts, 30% to $4.8 billion; and jewelry and luxury goods, 28% to $3.2 billion.