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Home  > Consumer Products  >  Consumer Products & Retail  >  Retail

Internet and Catalog Retailers


Published Date: November 2009
Published By: First Research, Inc.
Page Count: 10
Order Code: R3470-3220
 
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The Internet and catalog retailing industry in the US includes 16,000 companies with combined annual revenue of over $160 billion. Major companies include Lands’ End, LL Bean, Amazon.com, Overstock.com, and Hanover Direct. The industry is concentrated: the top 50 companies account for about 60 percent of industry revenue. Over the past five years, the industry has shifted from catalog to Internet sales.

COMPETITIVE LANDSCAPE

Demand is driven by consumers’ personal income. Profitability of individual companies depends on effective marketing to build a customer base. Larger firms enjoy central purchasing efficiencies and economies of scale in inventory management, customer service, and telecommunications. Smaller firms compete on outstanding customer service and providing niche products. Average annual revenue per worker for a typical company is about $400,000.

While most brick-and-mortar retailers have an online presence and many also offer catalog sales, this profile focuses on retailers who use the Internet or catalogs as their sole or primary sales channel.

PRODUCTS, OPERATIONS & TECHNOLOGY

Although catalog and Internet retailers sell a variety of products and services, some of the largest product categories are drugs, health, and beauty aids; computer hardware and software; and clothing. While many Internet and catalog companies specialize in a single product category, larger companies are expanding offerings to maintain growth and leverage brand awareness. Amazon has expanded from being an online bookstore to offering items in more than 30 categories, including loose diamonds.

Catalog retailers specialize in ...

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