The annual report put out by Shop.org and Forrester Research entitled, “The State of Online Retailing,” projects over $259 billion in 2007 ecommerce sales, an 18 percent increase over 2006.

Online Apparel Beats Computer Hardware and Software

In 2006, and for the first time, online apparel sales surpassed the sales of computer hardware and software, which was previously the best-selling category online. It was also predicted that 10 percent of all apparel sales in 2007 will take place online.

Ecommerce has come of age, and retailers are overcoming most of the barriers to online purchasing, including security concerns, return policies, and the ability to merchandise and display fashion products.

Online Retail Moving Full Speed Ahead

“As consumers flood the Web to purchase merchandise and research products, online retail is moving full speed ahead,” said Sucharita Mulpuru, Forrester Research senior analyst and lead author of the report. “This strong growth is an indicator that online retail is years away from reaching a point of saturation.”

Ecommerce Sales Profitable and Growing

The report found that 83 percent of the responding retailers indicated their online business was profitable, and 78 percent said profitability increased from 2005 to 2006.

The report shows that ecommerce sales are growing at double-digit rates. If this growth rate continues, it won’t be long before 25 percent or more of the goods in the apparel category are purchased online. Ecommerce sales are expected to move to mobile devices and emerging media like interactive television.

The addition of these additional distribution channels will have an impact on marketing campaigns in that marketers will need to increase budgets and widen their marketing mix. However, many of the nation’s largest retailers spend very little online, despite the fact that their customers are shopping the Web in ever increasing numbers.

Multi-Channel Shoppers

Multichannel shoppers are consumers who go back and forth between ecommerce sites, brick-and-mortar stores, and many other places — from blogs and manufacturers’ Web pages to online review and price-comparison sites. This is a complex mix of shopping behaviors, and you’ll have to adjust your marketing plans to reach them all.

When consumers leave their homes (and PCs) to enter a retail store, they won’t want to leave all the product information the Web offers them behind. By the same token, online shoppers will increasingly expect the speed of delivery (same day or next day) that local stores offer. This is a logistical problem that all retailers need to solve. Likely the mobile devices will bridge the gap between the Web and the store. Order online for in-store pickup is one way.