18 August 2006
Small and medium sized enterprises (SME) should not fall behind in the competitive eMarket, as online spending is set to double by 2010, PayPal has warned.
By 2010, total spending on the Internet could reach £39 billion, with the food and groceries, clothing and DIY the largest grossing areas, the company claimed.
Thousands of small businesses could be putting themselves at risk, as one in five UK purchases would not have happened on the high street, representing an extra £3.2 billion in consumer spending by 2010.
Carl Olav Scheible, head of merchant services at PayPal, comments: "Over the past few years we’ve seen the Internet gradually eating away at the high street.
"Retailers are realising that they need to provide an impressive online shop to stay ahead of the game and find the success they are looking for."
The company asserted that food and groceries will account for almost 30 per cent of the total online retail marketing in 2010, at an estimated £6,248 million, while the clothing and footwear category will be worth £2,274 million.
PayPal is an online payments service, which handles many transactions for SMEs and individuals.
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