Research Data: Proving that Startershop is a statistically sound idea
While devising Startershop, we did some work on understanding the ecommerce market in the UK. The figures make interesting reading for any aspiring internet merchant.
- The value of Internet sales to households rose to £18.1 billion in 2004 from £10.8 billion in 2003, a rise of 67.6 per cent.
- 6.7 per cent of businesses sold over the Internet in 2004 (5.4 per cent in 2003) while 35.3 per cent made purchases over the Internet in 2004 (29.4 per cent in 2003).
- 32 per cent of businesses with 1000 or more employees sold over the Internet in 2004 and 70.3 per cent purchased over the Internet in 2004.
- Internet purchases by businesses rose 64.6 per cent, from £37.9 billion in 2003 to £62.4 billion in 2004.
- 33.8 per cent of businesses had a website in 2004, compared to 30.7 per cent of businesses in 2003. Of businesses with 1000 or more employees, 98.1 per cent had a website in 2004.
- For businesses with an Internet connection, the use of broadband as the primary connection method rose from 25.7 per cent in 2003 to 42.3 per cent in 2004, an increase of 64.6 per cent.
Detailed results of the ONS reports can be found online at: http://www.statistics.gov.uk/STatbase/product.asp?vlnk=6645
Verdict Research report that in the UK, online shopping accounts for half of retail sector growth:
The online market is the fastest growing sector of UK retail at present and this is increasingly occurring at the expense of the high street. Consumer confidence and expectation is increasing as one in four consumers now purchase goods over the internet, meaning continual development of online presence is essential to maintain and increase market share.
A new report from retail analysts Verdict Research, part of the Datamonitor Group, reveals the true strength of the online retail sector. Last year online retailers accounted for almost half the cash growth in retail spending, with sales increasing 15 times faster than the retail average. Though online’s share of retail is still small, its meteoric growth is sending shock waves throughout the wider retail sector as shoppers of all ages transfer their purchases online.
A full version of Verdict report available from: http://www.verdict.co.uk/
Costs: In 2004, the ecommerce software company Actinic reported that the average price charged by a web designer to build an online store for a client was £2293.
Full Actinic report can be downloaded from: http://www.actinic.com/resources/actinic_webDesignReport2004.pdf