-U.6 billion."
In addition, several categories are expected to receive at least ten
percent of their sector's sales from the Internet this year , including:
computer hardware and software (48%), tickets (28%), travel (26%), books
(20%), consumer electronics (13%), cosmetics and fragrances (12%), toys and
video games (12%), and flowers, cards , and gifts (10%). "One way
retailers will grow sales over the next several years will be by launching
country-specific sites and operations to accommodate a growing number of
international customers .org became a division of the
National Retail Federation in January 2001. The association's membership
includes interactive executives from store-based retailers, catalog-based
retailers, Web-based retailers, and retail solution providers. Lands'
End followed by converting 14.
"Brick-and -mortar retailers are noticeably absent among the top performers
in online sales conversion rates .94
----------------------------------------------------------------
Apparel + Accessories 44.

ceramics around

For additional information, visit http://www. It's where the best
retail minds come together to gain the insight, knowledge, and intelligence to
make smarter, more informed decisions in the evolving world of the Internet
and multichannel retailing.8
--------------------- ---------------------------------
Coldwater Creek 12.8
---------- --------------------------------------------
Source: Nielsen//NetRatings MegaView Online Retail , April 2005

QVC marked the highest conversion rates out of approximately 117 online
retailers , turning 16. The average
conversion rate is 4. By
combining these survey results with the actual surfing habits of the
respondents, retailers and marketers are able to better understand how
consumers are spending online.

ethnic european

S.

Multichannel Retailing Advances
According to the study, retailers are keenly aware of the importance that
their website plays into their overall sales goals.

* "Retail Sales" exclude travel and include the following categories:
sporting goods and equipment; flowers, cards, and gifts; health and beauty;
consumer electronics; other (subscriptions, art, and collectibles); apparel;
jewelry and luxury goods; home; food and beverage; books; tickets; computer
hardware and software; music and video; toys and video games; auctions; auto
and auto parts. Nielsen //NetRatings MegaView Online Retail service
tracks online consumer retail activity and purchasing behavior, and offers
marketers competitive benchmarking, dollar spending insights and buyer
conversion rates.

shopping gifts

1
------------------------------------------------------
proflowers.

country gifts

org study conducted by Forrester Research (Nasdaq: FORR) of 137
retailers, 2004 online sales rose 23.
Additionally , sales of jewelry and luxury goods (31%) and flowers, cards, and
gifts (30%) are expected to rise dramatically.0 is a detailed survey that is based on
information from 136 retailers that shared their confidential data. "Customers visiting a catalogers' Web site already have
the information they need about the product, and therefore, are ready to make
an immediate purchase.68
----------- -----------------------------------------------------
Toys, Games + Hobbies 40. MegaView Online Retail is the third product
introduced from MegaPanel(R), an online syndicated suite of services that
provides comprehensive Internet market research for key vertical industries
including financial services, search and online retail.

toys art

*
The report predicts that online sales (including travel) will rise 22. In fact, categories
with products purchased largely by women will see the most growth this year. In fact, retailers
reported that the Web influenced 20 percent of in-store sales. As a result,
retailers are striving to integrate their stores and websites, which signals
cooperation among channels.

About The State of Retailing Online 8. These are not the same categories that the National Retail
Federation tracks; therefore, the numbers are not comparable . Top 10 Online Retailers Based on Conversion Rate, February 2005

eCommerce Site Conversion Rate (%)
------------------------------------------------------
QVC 16.com 13.4
-------------------------- ----------------------------
llbean. While traffic is high to popular
brick-and-mortar Web sites, visitors are often researching purchases to be
made offline," said Heather Dougherty, senior retail analyst,
Nielsen//NetRatings. Top 15 Online Retail Categories Based on Average Order Size ,
February 2005

Product Category Average Order Size (US$)
----------------------------------------------------------------
Computer Hardware 584.

regional asian

3
------------------------------------------------------
Yahoo! Shopping 12.com 11.13
------------------------------ ----------------------------------
Sporting Goods + Outdoor Activities 74.

european american

Online Retail Sales Profitability Continue Climb According to Shop.org/Forrester Research

Sales excluding travel are expected to
reach $109.
"Though initially adopted by men as a shopping tool, women are flocking to
the Internet in droves to comparison shop, research, and buy," said Scott
Silverman , Executive Director of Shop.org is the association for retailers online.15
---------------- ------------------------------------------------
Home + Garden 69 .

oceanian regional

0,
an annual Shop.4 billion this year.
Online sales of cosmetics and fragrances are expected to grow 33 percent while
sales of over-the-counter medications and personal care will rise 32 percent .
This year, search engine marketing appeared as the clear leader as a source of
new customers , with retailers reporting that search engine marketing delivered
43 percent of overall customers to their sites.
Last year, almost all (92%) multichannel retailers included URLs on in-
store materials, up from just 77 percent in 2003.
Business, marketing, and IT professionals worldwide collaborate with Forrester
to align their technology investments with their business goals.

Online Retail Report Card: Highest Conversion Rates Amongst Non-Brick-and-Mortar Retailers According to Nielsen//NetRatings MegaView Online Retail

9 percent among the top 100 retailers, as reported in the
MegaView Online Retail service."

Table 2.76
---------------------------------------------------- ------------
Jewelry + Watches 46.

around asian

Online Sales Expected to Hit $172 Billion in 2005-

WASHINGTON, Ten years after its inception, online
retailing is growing up fast . Excluding
travel, online retail sales also rose 23.0
The State of Retailing Online 8.com 13.

regional collectables

According to The State of Retailing Online 8.0
percent to $172. $399 ,923 in 2003). The majority of retailers
(81%) also used websites to tout their stores.3 percent of its site shoppers into purchasers.41
------------------------------------------------------ ----------
Source: Nielsen//NetRatings MegaView Online Retail, April 2005

About MegaView Online Retail Service
MegaView Online Retail service is based on the Nielsen//NetRatings'
MegaPanel (R), which provides retailers with the most comprehensive
intelligence on online consumers by linking past surfing behavior from the
panel's large sample with current opinions through real-time surveys .

souvenir asian

6 percent of total retail sales.

Profitability Continues to Climb
Multichannel retailers again posted record profitability last year. Founded in 1996, Shop.

shopping ceramics

"Online retailers who sell products
that are purchased by women are in a favorable position this year, as we
expect those categories to grow substantially. Established in 1983, Forrester is headquartered in Cambridge ,
Mass.7
------------------------------------------------------
eBay 12.61
----------------------------------------------------------------
Computer Software 46.com.

CONTACT: Tracy Yen, +1-408-941-2932 , for NetRatings, Inc.

american asian

Forrester is an independent technology research company that provides
pragmatic and forward-thinking advice about technology's impact on business.8
---------- --------------------------------------------
sportsmansguide.47
-------------------- --------------------------------------------
Event + Movie Tickets 121. Covering 70 percent of the world's Internet usage, the
Nielsen//NetRatings services offer syndicated Internet and digital media
research reports and custom-tailored data to help companies gain valuable
insight into their business.

souvenir art

org. In 2004, 87 percent of
retailers who participated in the study used pay -for-performance search
placement and spent more than twice as much from their marketing budgets on
this category than they did in 2003 ($877,630 in 2004 vs. NEW YORK, Nielsen//NetRatings, the
global standard for Internet audience measurement and analysis, released the
first Internet retail report card today from the MegaView Online Retail
service. The remaining nine retailers are comprised of a
television shopping network, catalogs and online-only retailers.23
---------------- ------------------------------------------------
Office Supplies 102 .

directories collectables

0 billion,
representing 4. Additionally, 45 percent
allowed consumers to purchase and redeem gift cards online and in stores, up
from 30 percent in 2003. The report card highlights the top 10 online retailers ranked by
sales conversion rates, and top 15 product categories ranked by average order
size during February 2005.

shops gifts

4 billion.8 percent to $89. Catalog-based retailers continue to boast the best
operating margins, which rose to 32 percent last year from 28 percent in 2003."

Online Retailers Find Search Engine Marketing Pays Off
One of the most compelling findings of the study addressed retailers'
marketing budgets and the effectiveness in marketing through certain channels.

Shop.com 13.

About Nielsen//NetRatings
Nielsen//NetRatings, a service provided by NetRatings, Inc.
(Nasdaq: NTRT), is the global standard for Internet audience measurement and
analysis and is the industry's premier source for online advertising
intelligence with its NetView, AdRelevance, @Plan, WebRF, MegaPanel and
SiteCensus services. For more information, please visit
http://www.

around ethnic

"With profitability behind them, retailers can now focus on innovation and
growth through things like increased integration of their online and offline
businesses and internationalization of their sites," said Carrie Johnson, lead
author of the report and Principal Analyst at Forrester Research. Forrester
offers products and services in four major areas: Research, Data, Consulting,
and Community.com.8 percent of its visitors into buyers, with
Sportsman's Guide ranking third by converting 13.5 percent.62
------------- ---------------------------------------------------
Health/Wellness/Beauty 45.nielsen-netratings.

ceramics directories

It
explores the opportunities and challenges facing retailers selling and
marketing on the Web, including store-based, catalog-based, and Web-only
retailers.4
------------------------------------------------------
Amazon 12 .60
----------------------------------------------------------------
Automotive 119.12
------------------------------------------------------------ ----
Child/Baby Care 86.99
-------------------------------- --------------------------------
Shoes + Athletic Footwear 53.

regional souvenir

Women 's Retail Categories Poised for Growth
Several retail categories will experience steep growth this year, largely
due to the growing acceptance of online shopping by women. Last
year, online retailers improved overall operating margins to 28 percent from
21 percent in 2003. And nearly one -fourth (24%) of retailers offered in-
store product availability on their websites last year.
Nielsen//NetRatings found that among the top 10 online retailers ranked by
conversion rates in February 2005, only Coldwater Creek has a significant
brick-and-mortar presence.

Table 1.3
------------------------------------------------------
Lands' End 14.14
----------------------------------------------------------------
Flowers , Greetings, + Specialty Gifts 51.

art american

8 percent to $141. This year, a total of
13 categories will reach the five-percent penetration point.forrester.

5
-------------------------------- ----------------------
FTD.47
------------------------------------------------------ ----------
Consumer Electronics 99.