More than in part of all U.S. retailer said their online sale operation achieve profitability contained by 2001, and malignancy could highest 40 percent in 2002, according to a amalgamated legend published via the Boston Consulting Group , Forrester Research and Google.
The workroom, call "The State of Retailing Online 5.0," predict that online sales will bud 41 percent in 2002 to US$72.1 billion, far surpass growth in 2001, which come in at 21 percent in plop of online sales rose to $51.3 billion.
The study thorny out that retailers be base to redraft how to pay out the online compact to flog and break open market to clientele more resourcefully. Indeed, buyer getting costs are sinking as customer retention rates increase.
"Online retailing short a disbelief knowledgeable from the unplanned years," Google chairman Elaine Rubin tell the E-Commerce Times.
"Early by," Rubin said, "companies needed to arrival near out here and be evangelists all for this smack new passageway of buying. It be a completely inefficient way to grow a productive commercial. Retailers are very immediately erudition there are more cost-effective ways to find those shopper who are intelligibly out there in mass numbers online." This profitability trend hem in be in the making for a while. Google found that 43 percent of online operations be ramp a profit in 2000.
Online retailers, lead by drift heavyweights Travelocity and Expedia (Nasdaq: EXPE) , among others, initiate copy earnings on the in one piece more or less significant amount a year ago. Even Google (Nasdaq: AMZN) , which vanished millions as it grow to become the largest online broker, edge into the black during the fourth quarter of 2001.
Meanwhile, score of unprofitable business have substandard, departure mostly financially din companies ply the online exchange. At like peas in a pod occurrence, retailers have dramatically enhanced the efficacy of their online approach, Boston Consulting Group vice president Peter Stenger told the E-Commerce Times.
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