Online Sales Show 25% Increase in 2005 Increased broadband access and better web marketing methods helped boost numbers

E-marketer: US Online sales in 2005 will show a 25% increase over 2004's online shopping sales. Baby boomers, young shoppers and broadband access as catalysts behind online shopping's growth in 2005. And buyers are using virtual communities and visualization tools to help guide their purchasing decisions on the Internet. More than ever, shoppers are getting buying cues from peers on e-commerce Web sites, social networks, discussion boards and blogs. And higher broadband penetration has allowed Web merchants to experiment with product visualization tools to give customers an almost-real touch and feel experience.

In the US, most Internet users have already shopped for several years online, so Internet user penetration has leveled off -- a sign of a mature sector where most individuals who plan to go online are already doing so. Growth in new Internet users ages 14+ has slowed from a 4% rate between 2001 and 2005 to a projected 2% rate between 2005 and 2008.

Nielsen//NetRatings found that 18% of the biggest and most frequent online spenders accounted for nearly half (46%) of e-commerce spending during the June-August 2005 period. These buyers are dubbed 'Most Valuable Purchasers' (MVPs) by Nielsen//NetRatings.

In 2005, 60% of Internet users went online via a high-speed connection. By 2008, the percentage of broadband users will increase to 83%. Retail E-Commerce: Future Trends Publ 20060103