A recent study on online retailing trends conducted by the Boston Consulting Group (BCG) revealed that traditional retailers could become the dominant retailers online. This is because, says the study, they are better prepared to master the economics of online retailing and satisfy consumer demands. Traditional retailers can now take the place of dotcoms and sell necessities to a vast market through the Internet. On the other hand, traditional retailers who don't go online could lose customers to those who do.

There is no doubt that traditional retailers who do go online will find a rise in their sales. In fact, the report stated that online grocery shopping alone could grow beyond $ 25 billion in 2005. Some of the other categories that would see growth would be travel and clothing.  According to BCG, cataloguers have adapted best to online retailing, since they are used to selling to customers at a distance. Their focus has therefore been on the best customers and not just on attracting any customers.

Others who will succeed in online retailing are brands such as Amazon, which has been able to reduce its systems costs and build upon its strengths. Smaller retailers who cater to a limited target population will also do well.

Studies of online retailing trends also indicate that traditional retailers who set up an online presence can do well if they master the economics of online retailing. Other studies indicate that shoppers who buy from the same retailers online and offline tend to be the most loyal customers. BCG's report also emphasised several methods that traditional retailers with an online presence use to boost their business. The report urged them to give incentives to customers to shop online, use their knowledge of their customer base to anticipate customer needs and integrate their online and offline channels.

Findings from another study by Shop.org, an association of retailers conducting business online, indicated that shoppers who buy online and offline at the same stores spent more. They also demonstrated more loyalty than those shoppers who only shopped online or offline. At least 78% online shoppers bought from both the website and the brick and mortar store of their favourite retailer. Even those shoppers who bought mainly from brick and mortar establishments were more likely to research their purchases online.

Most retailers said they were working on integrating their brick and mortar business divisions with their online business divisions. Those who were succeeding had a background in catalogue sales.

There are indeed a lot of new trends in online retailing that are impacting how business will be done from now onwards. One will surely need to keep a track of them if one wants to stay ahead.