Online shopping growth slowing

Over the past few years it seemed like the sky was the limit when it came to online shopping. Each the numbers grew and grew as more people discovered the joys of click and spend. But recent data indicates that online commerce has slowed in some key categories such as books, office supplies, beauty products and computer peripherals. Analysts say the trend is here to stay and point to the recent decision by Dell to sell PCs at Wal-Mart stores as a sign that selling online is no longer as successful as it once was.

The numbers for Internet sales are still impressive, and are expected to reach $116 billion this year, but that's still just 5% of all retail sales. The threat of online sales has caused retail stores to step up their game, making stores brighter and more fun to shop in. Online fatigue has also set in; some shoppers queried tend to view shopping online as being more of a task and less of a pleasure or stress reliever the way that in-person shopping is for some people. Because online shopping takes place on a computer it can often seem like work, while an afternoon in the mall is seen as recreation.

The future of online shopping may lie in what is known as the hybrid model, the combination of being able to buy online and pick up the goods at the store. Many of the big box stores now have this sort of service. Consumers are also adopting a bit of a hybrid shopping strategy, deciding to buy some things online and others in person. Unless online retailers  make virtual browsing more enticing, the division between online shopping and  in-store shopping will remain one in which the more mundane shopping chores are relegated to the computer and the shop-for-fun moments will continue to take place in person.

See also: ShopSmart's complete guide to online shopping