The Royal Mail is predicting that it will deliver as many as 100 million items ordered over the internet this Christmas. This is a massive increase on the 70 million items it estimates it handled last year.

It also suggests that online retailers are learning from traditional retail outlets and employing different tactics in the battle for customers.

“Retailers are increasingly using catalogues and brochures to encourage people to buy from them online... 61 per cent of UK consumers now consult catalogues before making online purchases,” said Catherine Campbell, head of multi-channel retail at Royal Mail.

Meanwhile, the Interactive Media in Retail Group (IMRG) has released its Hitwise Hot Shops List of the top 50 UK online retailers. At the top of the list is Amazon, followed by Play.com, Argos and Tesco.

The list indicates that online retailers are more than just competing with traditional bricks-and-mortar companies. However, many companies such as Tesco are managing to combine a strong presence online with a nationwide chain of stores.

"Many traditional high street brands are showing their strength online in the lead up to Christmas, with Tesco and Argos taking positions among the top five retail brands online," said Heather Hopkins, vice president of research at Hitwise.

The need for businesses to attract customers to their websites was emphasised by James Roper, chief executive of IMRG.

"The online consumer spend is not new money; it is cash that is not being spent of the high street. Merchants are either winning online, or losing the retail game," he said.

However, a survey published today by security firm Enterasys Networks suggests that 43 per cent of us are put off shopping or banking online because of security concerns.

If this is the case, it would seem that online retailers could reap even greater dividends in future if customers can be persuaded to take the plunge and buy online rather than on the high street.

"We have only really touched the tip of the iceberg in terms of the potential of online purchases... there is still a huge amount of untapped business for those companies who can address and convince customers that their information is in safe hands," said Mark Pearce, a security specialist at Enterasys Networks.

http://www.royalmail.com/
http://www.imrg.org/
http://www.enterasys.com/

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