Online Sales Growth To Slow In 2005?

A new report from Jupiter Research is suggesting that overall online purchasing growth will decrease in 2005. According to the company’s report growth is expected to be only 20 percent this year, for a total of $79 billion, compared to 24 percent growth in 2004. In particular, the report suggests that online sales of toys, PCs and video games will plateau. This is being attributed to a lack of new customers, as the online retail industry in general matures. An improvement of in-store shopping, in response to the popularity of online stores is also cited as a major factor. "Online shopping is still growing. However, the fact that online shoppers comprise nearly 70 percent of the online population and will most likely top out at that point raises questions about where continued online retail growth will come from," states Jupiter Research analyst Patti Freeman Evans. However, online shoppers are expected to spend more on average on online purchases through 2009, with an 8 percent rise in per buyer spending this year. The steepest growth is expected to come from products such as home improvement, medical supplies and auto parts. Clothing, consumer electronics and groceries are predicted to see steady growth.