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Dot 'Calm' Era: Researchers Say Online Sales Are Slowing


Welcome to Dot Calm

Though online sales climbed as high as 25 percent in 2004, growth in the last year has slowed to around 20 percent, reports The New York Times.

Online sales reached $116 billion in 2006 - five percent of all retail sales. Jupiter Research estimates that growth will gradually slow down to nine percent by the end of the decade.

With analysts calling for the slowed growth to continue through the decade and online sales making up less than 1 percent of the US economy, some are now calling this period the "dot calm era."

The trend resonates with examples like Dell, which many thought had mastered the art of selling PCs online. However, stagnant sales have forced Dell to rethink its strategy, and the company will soon offer its line in Wal-Mart stores. Further, Expedia is also branching out - nearly tripling the number of ticket kiosks in public places such as hotel lobbies.

Analysts and consumers alike blame the tedium of shopping online: It's more of a chore than the experience of heading to an enlivened brick and mortar shop.

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