New data – awesome growth in online sales set to continue

Presents

Yesterday the Sunday Times reported that online sales will hit £78bn a year by 2010 – doubling the webs share of retail sales to 20%.

I love reading news like that!

It is fantastic for everyone active round the start-up scene in this sector.

On a personal level it is particularly good news for our investment in affiliate network buy.at where success is directly linked to online sales.

More generally e-tailers and everyone who provides services or technology to them will benefit directly. Three of the most obvious winners from our portfolio are:

  • LoveFilm a DVD rental e-tailer
  • Zeus whose software keeps e-commerce sites performing, and
  • PacketExchange whose network improves page load times

In addition, everyone with an online presence will benefit indirectly, from the advertising dollars this will bring onto the web. I guess this is part of why the online advertising market remains so hot.

The data junkies amongst you should check out the Sunday Times article, but for the rest of you these are the key data points (all UK figures):

  • Retail sales grew 3,553% from April 2000 to December 2006 – rising from £87m pounds per month to £3.6bn
  • Online sales in 2006 were £30.2bn, up from £19.2bn in 2005
  • Online sales are forecast to reach £78bn in 2010
  • Britain’s 26m internet customers will receive an average of 33 parcels this year spending £1,600

All this and the first ever online transaction was only in 1994 – a CD sale in America

  • … and all these transactions are secured with over 10-year old technologies. Something doesn’t add up.

  • … and all these transactions are secured with over 10-year old technologies. Something doesn’t add up.