RealTime IT News

Study Finds Sales Growth at Retail Sites Up Sharply

ActivMedia Research said new study data found that retail, entertainment and other Web sites catering to consumers have seen average monthly sales revenue reach $40,273, up from $13,260 at the same point in 1997.

Retail sites are also primary beneficiaries of Web advertising revenue, the study found. Advertising flows to sites with many visits, and high-volume retail sites have been quick to recognize the opportunity to build a secondary revenue stream from transient visitors.

Interestingly, the study found there is no single "sweet spot" for retail price points. More than a third of the retail sites sell products for under $100, and nearly as many sell products in a range between $100 and $999. One-in-six sites promotes products costing over $1,000.

However, the very low end remains the one area where the Web is not an effective sales vehicle; fewer than 2 percent of all retail Web sites sell products costing less than $10. The data comes from ActivMedia's frequently updated "Real Numbers Behind 'Net Profits 1998" report.

Retail sites are also among the more heavily Netcentric sites. On average, they derive 30 percent of total business revenue from Web enterprise. One in four is heavily committed to Web commerce, deriving over half of their revenue online. One in six is totally Netcentric with 90 percent to 100 percent dependence on online business.

However, for a substantial minority (38 percent) the Web is primarily a sideline business representing fewer than 10 percent of total business revenues. For another one in five (21 percent), online commerce has become a substantial component of their business, generating between 11 percent and 50 percent of business revenue on the Internet.

ActivMedia conducts custom and syndicated research and details Internet trends and sector slices with a series of quantitative research reports, market analyses and case studies. The updated report is available for $2,495.