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interactive local media


Interactive Local Media Advisory

Shop Globally, Buy Locally: The New Online-Offline Paradigm
Greg Sterling , 12/8/2004

Summary: E-commerce will deliver billions of dollars in revenues to online sellers this holiday season. However, online shopping still represents only a tiny fraction of total U.S. retail revenues. This gap obscures the degree to which the Internet is playing an increasingly influential role in offline consumer shopping behavior. The old belief that e-commerce would cannibalize traditional retailing is now giving way to a more complex picture of a multi-channel world in which consumers conduct research online but still buy locally.

Accordingly, eBay and Amazon.com were the top-two online shopping destinations after Thanksgiving. However, traditional retailers with physical stores occupied five of the top-10 positions and enjoyed the most traffic growth overall. In the broadest sense, local search could thus be defined as the impact of the Internet on offline consumer spending. If thats the equation, this marketplace is worth many more billions of dollars than even the most bullish forecasts. And while that formulation is too broad, the data indicate that regardless of how local search is defined, the impact of the Internet on local consumer behavior is both unmistakable and irreversible.

Copyright � 2005 The Kelsey Group. All Rights Reserved.
This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under Federal law. The Kelsey Group disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.

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