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.
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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.

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