40% more internet shoppers since 2005

29 January 2008

The number of people who have used the internet to shop for goods has jumped by 40% in two years, according to Nielsen.

The net research company says that, by December 2007, more than 85% of the world's internet users had used the web to make a purchase - a total of around 875 million people.

South Korea's net users lead the world, with 99% of them having used their connection to shop. The UK, Japan and Germany are close behind, with 97% of people having done so, while the US lags slightly at 94%.

Nielsen found books to be the most popular online purchase, with 41% of internet shoppers having bought them online in the last three months.

But the number of users shopping for clothes and shoes was found to be growing the fastest, rising from 20% two years ago to 36% in December.

"The internet is no longer a niche technology," said Nielsen Online president Jonathan Carson, "it is mass media and an utterly integral part of modern life."

But companies eager to muscle in on the medium have their work cut out, as Nielsen says that consumers tend to stick with the sites they know. EBay and Amazon dominate the top ten internet retailers, with a combined 65.2% 'active reach'.

"This shows the importance of capturing the tens of millions of new online shoppers as they make their first purchases on the internet," said Bruce Paul, Nielsen US' VP of customised research.

"If shopping sites can capture them early, and create a positive shopping experience, they will likely capture their loyalty and their money."

Addressing how new online shoppers choose sites, Mr Carson added: "Recommendations from fellow consumers – whether they are people they know or fellow online shoppers – play an enormous role in the decision-making process.

"The explosion in consumer generated media over the last year means that this reliance on word of mouth, over other forms of referral, looks set to increase."

Category: e-commerce, Online marketing, Search engines, Social media