Online retail set for 300 per cent jump

03/06/2008

A new study has suggested that online retail could reach £44.9 billion by 2012, an increase of over 300 per cent on 2007 when the market was worth £14.7 billion.

The study by Verdict Research shows broadband is on the rise and could be fuelling ecommerce with more than half (55.5 per cent) of online shoppers having broadband at home in 2007, up 30 per cent from the previous year.

Senior retail Analyst Malcolm Pinkerton suggested there is a direct correlation between amplified internet usage and increasing ecommerce sales figures.

"As the cost of broadband falls, consumers become accustomed to internet shopping and retailers continue to enhance their online propositions, the channel will find itself extremely well-placed to capitalise on the falling consumer confidence and lower levels of disposable income currently impacting the retail market."

The study also showed the average online shopper made 16.9 transactions in 2007 compared to 14.2 in 2006.