According to experts, online retailing will make through the financial crisis despite economic slowdown .Based on the third instalment of “The State of Retailing Online 2008: Profitability, Economy & Multichannel Report” done by Forrester Research, 35 percent of online retailers surveyed said they expect their online businesses to perform better than expected in the next 12 months, while 33 percent expect their online businesses to perform as expected.

People are turning to the internet for shopping: this change within consumer behaviours from the recent economic setback causes this positive thinking.

PriceGrabber.com(R) studied the impact of a tough economy on holiday shopping in its latest Consumer Behaviour Report. Sixty one percent of consumers are going to make an effort in cutting back this holidays according to results. Ninety-seven percent of survey respondents expect to do some purchasing online this holiday season. Fifty five percent are going to buy their gifts online this year, increasing by ten percent from last year. Thirty-seven percent say that online shopping appeals to them because it is “easier to compare products and find the lowest price.” Twenty-four percent prefer the “convenience of shopping anytime and anywhere.”

Forrester research results show 81 percent of online retailers that their e-commerce businesses were profitable last 2007. Because of this, the internet marketing bug seems to be spreading to more businesses. According to the Office for National Statistics (ONS) survey, 70.3 percent of businesses today have a website.

Malcolm Pinkerton, Verdict’s senior retail analyst states “As the cost of broadband falls, consumers become more accustomed to internet shopping and retailers continue to enhance their online propositions. This channel will find itself extremely well placed to capitalize on falling consumer confidence and lower levels of disposable income currently affecting the retail market.”

This would mean more people are able to shop online.Shopping online provides numerous advantages for shoppers, the foremost of which is convenience. Internet gives shoppers the ability to browse and compare product prices at any given time of the day, as online retail stores are open all the time, without leaving the comforts of their homes.It also gives the shoppers a chance to buy as much as they could without worrying how to transport them, as online retail stores provides delivery services. No more worrying over parking spaces, falling in line, or crowded shops.

In UK, a study reveals that one of the reasons of the increase of online shopping rate came from users in their 40s and 50s, having more trouble accessing built shopping centres because transport is usually not as readily available to them, are beginning to use the Internet for their own online shopping.

Online retail stores’ sales continue to rise  at a good rate, despite  the financial crisis In fact, according to Ed Garrubbo, chairman of the Electronic Retailing Association, the  recession may actually contribute to e-commerce because cautious consumers are doing more research and comparison shopping via ecommerce web sites before making a big purchase.