U.S. Online Market to Reach $65 Billion in 2001

Washington–The online retail market is expected to grow 45% in 2001, to $65 billion, according to a recent Shop.org study conducted by The Boston Consulting Group. The study, which looked at the data of 550 retailers—156 of which participated in the survey—concluded that operating losses decreased as a percentage of revenue in 2000, from 19% in 1999, to 13%, or $5.6 billion. The study also found that 72% of catalogers, 43% of store-based retailers, and 27% of pure-play e-commerce sites are profitable at an operating level. What’s more, customer acquisition costs for all online retailers fell from an average of $38 in 1999 to $29 in 2000.