Did you hear?... In 2001, 56 percent of retailers reported profitable online operations

In 2001, fully 56 percent of retailers reported profitable online operations, up from 43 percent in 2000.
Author:
Publish date:

In 2001, fully 56 percent of retailers reported profitable online operations, up from 43 percent in 2000, according to "The State of Retailing Online 5.0," a www.Shop.org annual study conducted by The Boston Consulting Group in conjunction with Forrester Research -- click here to read the complete press brief . According to the press brief, shoppers spent $51.3 billion online in 2001, up 21 percent from the year before. In 2002, consumer spending online is expected to increase 41 percent to $72.1 billion. The aggregate U.S. online retail market also moved closer to profitability last year. Operating margins rose from a net loss of 15 percent in 2000 to a loss of 6 percent in 2001, with break-even expected this year. Catalog-based retailers continued to have the most success, with positive margins of 6 percent. Store-based and Web-based retailers posted aggregate losses, though both groups showed year-over-year improvement and are trending toward break even. Marketing efficiency increased significantly, resulting in marketing costs per order falling to $12 in 2001 from $20 in 2000 and customer acquisition costs dropping to $14 in 2001 from $29 in 2000. Repeat buyers account for over half of sales, with 53 percent of revenue in 2001, up from 40 percent in 2000.

Related