Q2 online sales up 23% over last year
According to comScore Networks, Inc., online retail sales reached $27.2 billion in the second quarter, up from $22 billion in the second quarter of 2006. This is on target with analysts’ predictions of 20% growth for the year, but is far less than the enormous growth of past years.
The most growth occured in video games (159% increase), and other hot industries included sports, consumer electronics, event tickets, and jewelry.
What does this mean for e-tailers? If you want to grow faster than 20% a year, you need to find a way to steal business from your competitors (or buy them outright). The days where there was plenty of business for everyone are long gone (if they ever really existed). The next few years are going to be very interesting. It is very clear to me that the quickest way to grow right now is through acquisitions, and I think that there may be a lot of bargains available in the near future.