• by Masha Geller , May 22, 2001

According to the ever-optimistic Jupiter Media Metrix researchers, reports of the death of online retail are greatly exaggerated.

Online retail, they say, might be down but it's certainly not out, and despite skepticism about the future, U.S. online sales will still reach $104 billion in 2005 and $130 billion by 2006, up from $34 billion in 2001. This compares to Jupiter' original forecast of $36 billion in 2001 and $118 billion in 2005.

"The doom and gloom over the state of online retailing has been greatly exaggerated," said Jupiter analyst Heather Dougherty. "While short-term market factors have slowed the pace and shifted the playing field toward multi-channel retailers, the long-term outlook is still positive. Retailers and their constituents must not lose sight of the fact that the online purchasing population continues to grow and their comfort with the channel continues to increase."

According to Jupiter, 52% of the online population will be making retail purchases online by 2002, up from 40% in 2000. That figure is expected to grow to 63% by 2006.

According to a March 2001 Jupiter Consumer survey, most U.S. online buyers are not hesitant to register and give out personal information to retailers: 70% register to receive email for new products/special offers; 68% register prior to making a purchase; 50% register to store personal information on the site; and 41% register to receive physical mail.

Additionally, email marketing resonates well with online buyers: 85% of online buyers say they are very or somewhat more likely to return to a site after receiving an email message from a retailer.