In 2001, 56% of retailers reported profitable online operations, up from 43% in 2000.
Also that year, shoppers spent $51.3 billion online, up 21% from the year before. In 2002, consumer spending online is expected to increase 41% to $72.1 billion, according Forrester Research.
In addition, the aggregate U.S. online retail market also moved closer to profitability last year. Operating margins rose from a net loss of 15% in 2000 to a loss of 6% in 2001, with break-even expected this year.
Catalogers continued to have the most success, with positive margins of 6%. Store-based and Web-based retailers posted aggregate losses but both groups are moving toward breaking even, the report said.
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