For the first time ever, apparel sales exceeded computer sales online in 2006. According to a study titled "The State of Retailing Online 2007" conducted by the National Retail Federation’s online arm Shop.org, U.S. consumers spent $18.3 billion on apparel, accessories, and footwear online in 2006. This figure is expected to reach $22.1 billion in 2007.
Last year, Americans spent $17.2 billion on computer hardware and software, which was the dominant non-travel leader for years past.
What does the apparel industry owe its success to? Apparently, the integration of Web 2.0 technologies and generous shipping policies.
Many apparel, accessories, and footwear retailers are enhancing the ability of their users to get a better idea of what they are looking at online. Item images are richer, zoom and rotate capabilities are becoming the standard, and customer reviews are readily available.
"Retailers have found a way to leverage that with content like customer reviews that allow shoppers to hear what products are really like directly from other customers. In the example of apparel, they can find out whether the clothing runs large or small," said Scott Silverman, executive director of Shop.org.
He added, "Retailers are doing such a great job online that in some cases it’s easier to find and buy clothing on the web than it is in a store."
Gap Inc.’s piperlime.com offers its customers free shipping on returns, which is an example of an aggressive and attractive offering that many online retailers are making available.
In 2007, 10% of all clothing, accessories, and footwear sales are expected to happen online. This figure was 8% in 2006.
Auto and auto parts sales were third in line last year with sales reaching $16.7 billion, while home furnishings posted sales of $10 billion. Computer peripherals were not included in the hardware and software category, and posted sales of $1.5 billion last year.
The results were based on the responses of 170 online retailers and analysis of industry figures.
Online sales including travel reached $219.9 billion last year, which was a 25% increase. Online sales excluding travel reached $146.5 billion in 2006, which was a 29% increase.
In 2007, online sales including travel is expected to increase 18% to $259.1 billion, while online sales excluding travel is expected to increase 19% to $174.5 billion.
About 83% of respondents reported profitability in 2006, while 78% indicated that they were more profitable than in 2005.
Sources:
http://www.newsfactor.com/news/Online-Sales-Soar–Apparel-Tops-
List/story.xhtml?story_id=0320024RJ56O
http://news.yahoo.com/s/afp/20070514/tc_afp/lifestyleuseconomy;_
ylt=AqIj1NpicNm182p89aOqDf76VbIF
http://news.yahoo.com/s/ap/20070514/ap_on_hi_te/online_sales_
report;_ylt=Ask5WfyfCcB.F6LNM78xPKr6VbIF
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