January 18, 2008

US eCommerce Forecast: 2008 To 2012

B2C eCommerce Expected To Top $300B In Five Years

by Sucharita Mulpuru

with Carrie Johnson, Brendan McGowan, Scott Wright

Executive Summary (This is a document excerpt)

US online retail reached $175 billion in 2007 and is projected to grow to $335 billion by 2012. Business-to-consumer (B2C) eCommerce continues its double-digit year-over-year growth rate, in part because sales are shifting away from stores and in part because online shoppers are less sensitive to adverse economic conditions than the average US consumer. Despite the continued growth of the channel, online retailers face several challenges to growth: Online stores are broadly perceived as a second choice for shoppers, online retail is becoming increasingly seasonal, and online shoppers rarely admit to browsing, which can drive valuable incremental dollars during their Web shopping experiences.

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