August 20, 2004 9:28 AM PDT

Online retail sales continue to surge

Online retail sales continue to show significant growth, according to the latest figures released by the U.S. Department of Commerce.

Statistics published Friday by the federal agency indicate that e-tail sales reached $15.7 billion in the United States during the second quarter of 2004, a 23 percent increase over the same period last year. E-commerce made up approximately 1.7 percent of the nation's $919 billion in total retail sales, which rose nearly 8 percent from a year ago.

On a quarterly basis, e-tail sales increased nearly 1 percent, from $15.5 billion in the first quarter of 2004.

The online retail market, which recently celebrated its unofficial 10th birthday, has been delivering solid gains for well more than a year. Last year was the most successful period yet for the sector. Revenue for e-tailers reached $93 billion in 2003, a 27 percent increase over 2002.

Some industry watchers have predicted that e-tail sales will continue to spike upward until 2010. Cambridge, Mass.-based Forrester Research recently estimated that online sales will more than double over the next six years, growing from $144 billion in 2004 to $316 billion in 2010.

Among the factors Forrester cited as contributing to the expansion of the online retail market were greater numbers of individual U.S. households adopting online shopping habits, continued retailer innovations and e-commerce site improvements.

Another harbinger of potential growth for the e-tail segment is the sheer number of domain names being registered online, possibly indicating that more businesses are choosing to open up shop on the Web. According to Internet domain registrar VeriSign, registration of .com and .net domain names has grown at least 20 percent in the last year.

2 comments

Join the conversation!
Add your comment (Log in or register)
Article: Online retail sales continue to surge
Article:
<a class="jive-link-external" href="http://news.com.com/Online+retail+sales+continue+to+surge/2100-1038_3-5318048.html?tag=nefd.top" target="_newWindow">http://news.com.com/Online+retail+sales+continue+to+surge/2100-1038_3-5318048.html?tag=nefd.top</a>

Its amazing how quickly the e-tail sector has turnaround. Just four years ago, during the Dot.com Crash, the Nets e-tailers were dying like flies. Back then everybody blamed the crash on the sectors so-called flawed business models and on its so-called reckless entrepreneurs.

I dont think that the entrepreneurs who ran those failed Dot.coms are a bit surprised by the sectors impressive performance. They all boldly predicted that consumers would eventually embrace the online shopping concept, and thats exactly whats happening.
Posted by (2 comments )
Reply Link Flag
Article: Online retail sales continue to surge
Article:
<a class="jive-link-external" href="http://news.com.com/Online+retail+sales+continue+to+surge/2100-1038_3-5318048.html?tag=nefd.top" target="_newWindow">http://news.com.com/Online+retail+sales+continue+to+surge/2100-1038_3-5318048.html?tag=nefd.top</a>

Its amazing how quickly the e-tail sector has turnaround. Just four years ago, during the Dot.com Crash, the Nets e-tailers were dying like flies. Back then everybody blamed the crash on the sectors so-called flawed business models and on its so-called reckless entrepreneurs.

I dont think that the entrepreneurs who ran those failed Dot.coms are a bit surprised by the sectors impressive performance. They all boldly predicted that consumers would eventually embrace the online shopping concept, and thats exactly whats happening.
Posted by (2 comments )
Reply Link Flag
 

Join the conversation

Add your comment

The posting of advertisements, profanity, or personal attacks is prohibited. Click here to review our Terms of Use.

Inside CNET News

1-2 of 12

Scroll Left Scroll Right

What's Hot

Discussions

Shared

RSS Feeds

Add headlines from CNET News to your homepage or feedreader.

Markets

Market news, charts, SEC filings, and more

Related quotes

Dow Jones Industrials (0.37%) 47.23 12,848.46
S&P 500 (0.36%) 4.80 1,347.44
NASDAQ (0.42%) 12.22 2,916.10
CNET TECH (0.33%) 6.74 2,038.76
  Symbol Lookup