According to of Cambridge, MA-based Forrester ResearchInc., fast-growing online retail market in the U.S.will reach $316 billion in goods and services sold by2010. The research firm attributes the increase to agrowing population of online-shopping households, aswell as better retailer web sites.

For appliances, the penetration of online purchases isabout 4%, which is on target for most online retailpenetration, says Patti Freeman Evans, a retailanalyst with New York City-based research firm JupiterResearch. "Online appliance sales are not a small segment ofonline sales, but it's not huge either," Evans tellsGSR. "It is growing, though—there's demand and thereare retailers out there ready to satisfy that demand."

For example, Atlanta-based home improvement retailer,the Home Depot, recently launched its onlineinitiative, which allows consumers to purchase morethan 1,800 appliances directly from its website. Theproducts available online include trash compactors,cooktops, dishwashers, washers, dryers, refrigerators,freezers, ranges and wall ovens.

Despite Home Depot's leadership position in the homeimprovement segment, the retailer is lagging when itcomes to selling appliances online. Its competitors--Lowe's, Sears and Best Buy--have offered Web-basedappliance shopping for years, Evans points out.Home Depot is a late entrant to online applianceshopping. Sears, Best Buy and Lowe's are amongcompetitors already offering Web-based shopping forappliances. Lowe's, for example, offers 5,000appliances online.

Evans tells GSR that the process of shopping for andbuying appliances lends itself to the Internet."Appliances are going to be shipped anyway, so it'snot as if by buying online prevents you from gettingthe product immediately," she points out.

Moreover, Evans says that Home Depot's decisionillustrates the synergies between the research andpurchasing. "The second-largest retailer in the U.S.isn't going to do it if there's no money there," shecontends. "The whole process is being interwoven usingthe Internet."

Indeed, using the Internet to compare brands and toobtain product specifications for appliances if ofteneasier than conducting research in stores.Additionally, the search capabilities availablethrough Internet shopping often prove to be moreconvenient than more traditional methods, Evans says.

Home Depot's appliance shopping site, for example,features search tools so customers can quickly andeasily refine their search for appliances with theproduct attributes and features that are mostimportant to them. Detailed product information and anew product comparison tool help customers narrowtheir choices and identify key product differences. Evans concludes that as more and more consumers turnedto the Internet to conduct their research, more ofthem will become comfortable choosing a new stoveonline and purchasing while sitting at their computersrather than going into the store.

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