Internet retail sales reached $87.5 bln in 2004, 25% growth

Internet retail sales totaled $87.5 bln in 2004, up 25% from $70 bln in 2003 and up 62% from $54 bln in 2002, according to Internet Retailer. The top 400 online retailers brought in $51 bln. This represents 58.3% of all US Internet sales. Amazon.com alone accounts for 8% of all Internet sales. Conversion rates are 2.5% on average. However, some sites reflect anywhere between 8 and 18%. The average ticket across all categories increased to 16% last year. The Computers and Technology category continues to lead the pack representing 28% of overall sales or $14.3 bln in Web sales (up from $10.9 bln). Other Web retailing categories demonstrating solid sales growth are books, CDs, DVDs, and music, which increased sales 70% from $999 mln in 2003 to $1.7 bln in 2004 and office supplies, which rose 23% from category sales of $5.2 bln in 2003 to $6.4 bln in 2004.