Online sales rose in 2004 to $141.1 billion USD, and could go up to $172 billion in 2005, a 22 percent increase.
When it comes to online shopping, men do a lot of researching and comparing. But when it comes to pushing the Submit Order button, women are wielding the mouse.
In a Shop.org study conducted by Forrester Research, women’s retail categories are poised for record growth. Online sales of cosmetics, fragrances, and personal care items will rise. Also, demand for jewelry and for cards and flowers should increase by about 30 percent.
“Though initially adopted by men as a shopping tool, women are flocking to the Internet in droves to comparison shop, research, and buy,” said Scott Silverman, Executive Director of Shop.org. “Online retailers who sell products that are purchased by women are in a favorable position this year, as we expect those categories to grow substantially.”
While women were more satisfied than men with the overall online shopping experience, retailers need to pay attention to the under-35 subset of women. This very important segment have shown the greatest resistance to waiting for items to be delivered, and to what they perceive as high shipping rates.
Search Engine Ads = Very Important
One way online retailers have seen customers arrive at their stores has been via search engine marketing. Retailers in the study reported that 43 percent of overall customers arrived from a search engine.
The study seems to indicate the biggest source of new customers has been generated from search engine ad placement. 87 percent of retailers in the study more than doubled what they spent on pay for placement ads in 2004 than in 2003.
David Utter is a staff writer for Murdok covering technology and business. Email him here.
