Online sales are expected to grow 20 percent this year, reaching more than $211 billion, writes CNET, citing Shop.org's annual State of Retailing Online study conducted by Forrester Research. Excluding travel, 2006 online sales are expected to increase 22 percent to $138 billion. In 2005, online sales increased 25 percent, reaching $176.4 billion; excluding travel, online sales grew 28 percent.

Computer hardware and software, cars, and apparel, accessories and footwear are expected to be the largest nontravel categories in 2006, with anticipated sales of $16.8 billion, $15.9 billion and $13.8 billion, respectively. Sales of pet supplies and cosmetics and fragrances are expected to increase most, with growth rates of more than 30 percent,

"Online is a key growth driver for retail overall," said Shop.org Executive Director Scott Silverman. "It's going to be a bellwether for overall retail." He added: "I think we're still looking for the next several years' growth over 20 percent per year."