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Retail E-Commerce Sales Strong in Q2

Americans press the "Click to Buy" button.

Marketing for online retailers is having positive effects, judging by e-commerce sales.

Estimated US retail e-commerce sales for the second quarter of 2007 totaled $31.8 billion on a not-adjusted basis, according to the Census Bureau of the Department of Commerce. That is up 20.7% from the second quarter of 2006. E-commerce sales in the second quarter of 2007 accounted for 3.1% of all retail sales.

"The Department of Commerce data defy the expectations of a number of e-commerce analysts who believed the market would slow down considerably this year," said eMarketer Senior Analyst Jeffrey Grau.

"This growth rate is in line with eMarketer's forecast back in May that online sales would grow by 20.8% in 2007," Mr. Grau added. "The Internet's strength as a shopping channel offering convenience, good prices and wide selection continues to drive consumers to increase their online spending."

Although plenty of online new-product buyers start out as online shoppers, more go online after learning about a new product or service from other media.

The American Marketing Association's "Mplanet" survey, conducted before last year's holiday season, found that TV ads (37%) remained, by far, the best source for reaching and engaging online consumers with information about new products. However, the Internet (15%) and e-mail and online newsletters (14%) ranked higher than other traditional media, such as newspapers, magazine and radio ads.

Learn what else drives online purchasing. Please read eMarketer's US Retail E-Commerce: Entering the Multi-Channel Era report.

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