PayPal report says online retail sales to increase 36%

A PayPal study has noted that we could see a 36% increase in online retail sales over the next 18 months.

The study, which is the second annual PayPal Online Retail Report, said eCommerce could grow by more than a third compared with in-store sales which would rise by 1%.

Conducted by Experian, the study revealed that shoppers might visit an eCommerce website in order to save money, rather than go to town and purchase things.

Customers are turning to buying online because they are looking to be ‘thrifty’ despite the economic downfall according to the managing director of PayPal UK, Carl Scheible.

Scheible said: “Two thirds of online shoppers are now convinced their money goes further online compared to less than half who believed it last year, an increase of 8.5 million people.”

The results of this study follow on from Richard Dodd, head of media and campaigns at the British Retail Consortium, who recently declared that the forthcoming VAT increase might lead to rise in eCommerce sales before it is implemented in January 2011.

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