According to US Department of Commerce (DOC) estimates, online sales represent a minuscule percentage of overall retail sales. In 2007, only 3.2% of total retail sales took place on the Internet. Of course, large categories where e-commerce has hardly made a dentsuch as autos, gasoline and groceriesskew the results.
The DOC data illuminates a seasonal trend: Online sales penetration is greatest in Q4. A likely reason for this is that the benefits of e-commerceconvenience, broad selection, cost savings, free shipping and avoiding crowded mallsshine brightly during the holiday shopping season.
Even some of the categories with online sales penetration rates that exceed the industry's 7% rate still have strong growth potential. Forrester estimated that 20% of consumer electronics sales will take place online this year. Other Forrester data showed that online sales in this large category could grow to 29% of total sales by 2012.
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