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Europeans take initiative in Internet retail boom

Web money * Europe's Internet trade will grow nearly 75 percent to US$15.8 billion in the last three months of the year. * Amazon.com increased turnover in the US market by 33 percent after offering free delivery. * Amazon.com's business has almost doubled at its sites in Japan, Germany, Britain and France.

Europeans will overtake North Americans in the Internet spending stakes this Christmas and according to a new study will lead a 50 percent leap in Internet retail sales.

Worldwide Internet sales will hit 38.2 billion dollars in the final three months of the year against US$25.7 billion for the last quarter of 2001, according to GartnerG2, a specialist research firm.

Europe's Internet trade will grow nearly 75 percent to US$15.8 billion, while North America's will increase 32.7 percent to 15.7 billion dollars, the study predicts.

Far behind are the Asia-Pacific region and Japan, which is ranked independently, spending US$3.3 billion and US$1.9 billion respectively.

"Gains in Europe are being fueled by companies integrating their mail order and Web presence," said GartnerG2 specialist Gill Mander in the report.

"Europeans are using multiple channels, browsing printed catalogs and then ordering online," she said.

Internet retailers such as Amazon.com are using special offers to draw clients away from high street stores and shopping malls.

In the US market, the offer of free delivery for orders over 25 dollars helped the online books, music and film seller increase turnover by 33 percent in the third quarter and reduce net losses by 75 percent.

And in announcing its results at the end of October, Amazon.com said business had almost doubled at its sites in Japan, Germany, Britain and France.

At the Comdex trade show in Las Vegas this week, online auctioneer eBay.com showed off a new site for electronics for which Christmas customers will get free delivery.

Experts at the Comdex fair were divided on whether the industry would be lifted by the extra cash.

"With the tickets for shows and travel, computer products, especially from small suppliers, are generally among the first to feel the benefit from online sales," said Michel Lemailler, a former IBM executive who is now a consultant.
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