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SmallerTen years ago, millions of people paged through soon-to-be tattered catalogs to find the latest fashions. A decade later they click a mouse to scroll through a retailer's Web page, said James Lowry, a marketing professor.
"Depending on the site, it can cost up to $20 million to open a department store," he said. "Computer technology is far cheaper and you can reach billions of potential clients around the world."
Online shopping was estimated at $3.7 billion in 1997. Internet sales could increase to more than $7 billion annually in two to three years as millions of American homes hook up to the World Wide Web, he said.
"There are unlimited opportunities for retail companies on the Internet," Lowry said. "Very few people today are hooked up to the Net. When 70 to 80 percent of homes have access, we will see tremendous growth."
From a retailer's standpoint, the Web has the potential to deliver more customers than catalogs, provide speedy service, and dramatically reduce the costs of mailing bulky catalogs, he said.
The retail industry is enjoying a very healthy time with a strong economy, low unemployment rates, low interest rates and high consumer confidence, Lowry said.
"I believe retailers will quickly see the Internet as another way to tap into the market," he said.
A recent national survey of online retailers found that 28 percent of Internet sales consisted of computer hardware and software. Other popular items include clothing and personal items, nine percent; entertainment and sports tickets, three percent; and financial services, two percent.
Lowry points out that computer sales naturally are leading the way in the early days of online shopping because computer owners are constantly looking to upgrade equipment.
The computer industry and related service fields are also extremely competitive, offering deals quickly to potential clients, he said.
Retailers failing to join the computer craze may face perilous times when online shopping explodes worldwide, Lowry said.
