Net sales gather pace

Online sales in the UK are growing at an even faster rate than previously expected, according to a survey.

Research group Forrester now expects internet purchases to rise by 46% between 2002 and 2003, from £7.1bn to £10.4bn.

In January, it had expected 2003 sales to reach only £10.1bn.

"Online retailers are doing all they can to persuade wired Brits to spend money on the Net," said Forrester analyst Rebecca Jennings, suggesting 65% of adults had now made an online purchase.

However, there is plenty more retailers can do to draw non-buyers to part with their cash, suggested Forrester.

Jargon-free

The research group said 55% of people who don't buy online are put off by security fears, not wanting to put their personal financial information on the web.

Net newbies and old hands differ in their attitudes, demographics and product interest Rebecca Jennings, Forrester analyst

To win over reticent shoppers, Forrester suggested retailers use 'hand-holding" techniques such as free delivery, simple site design and online help.

"A simple, jargon-free privacy and security policy link" is also recommended.

The most popular products remain those that don't need examination, such as books, airline tickets and music.

But online shoppers are getting more adventurous, with sales of clothing, electronics and home furnishings growing at the quickest rate in the past three months.

"Net newbies and old hands differ in their attitudes, demographics and product interest," said Ms Jennings.

"To get the attention - and cash - of both groups, online retailers' sites must offer a variety of product routes to the same target, with both simplicity and more sophisticated functionality," she said.