What Matters Most in Internet Retailing

Although online retailers theoretically have unlimited trading areas, they need to know where to look for customers.

BY DAVID R. BELL, JEONGHYE CHOI AND LEONARD LODISH

ONLINE RETAILING IS far and away the fastest growing retail sector in the United States, with overall growth of about 15% in the past year and with categories such as apparel and footwear up by more.1 Internet retailing currently represents approximately 8% of U.S. retail sales, and in many countries it’s an even larger percentage. Forrester Research expects that from 2010 to 2015 online retail sales in China will more than triple, to about $160 billion.

What’s driving the growth, and to what extent do the principles of success for online ...

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