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eFundraising can help you raise millions!

With $149.3 billion spent last year in eRetail, every time your members shop online, you could be earning millions.

Congratulations are in order for the e-commerce industry, as the US Department of Commerce found that year-over-year online retail sales were up by 24%. Total eCommerce sales for 2005 were estimated at $149.3 billion, up 24.6% from 2004.

Online buying accounted for 6% of all consumer retail spending last year - total retail sales in 2005 (online and in-store) increased 7.2% from 2004-making eRetail an important metric in determining trends in consumer spending. According to Forrester Research's US eCommerce forecast last September 2005, eCommerce will represent 13% of total US retail sales by 2010.

The rise in eCommerce will be marked by innovations that will make online shopping easier and more engaging. This will boost US online retail sales from $149.3 billion in 2005 to $329 billion in 2010, according to a new forecast by Forrester Research.

You can raise millions from online shopping!

Organizations that include eFundraising stand to add over $10 million to their fundraising bottom line from such huge, steady online spending. Sparhawk helps by providing technology (a portal to our eFundraising Mall) and support that makes it possible for your members to shop and donate at the same time, without spending a dime! Our online store partners-the same ones that are ringing in huge eRetail sales-write the check. This donation back to you is 3-5% of every dollar your members spend online via our eFundraising Mall.

Here's how. There are over 228 million people over the age of 14 in the United States. These are the same people-including your members-spending $149.3 billion in eRetail every year. On average then, each of your members will probably spend about $655 annually in gross eRetail. If we take the average, conservative 2% commission (typically it's between 3-5%) that Sparhawk's online partner stores donate back to you, then each member is worth $13.10. That means an organization with a one-million membership would be worth a maximum statistical potential of $13,099,962 million dollars!

And it only gets better. With $329 billion projected to be spent online by 2010, you're eFundraising program will earn even more.

As shoppers continue to shift to online, you'll get more eFundraising donations

Virtually all commerce reports confirm that the number of shoppers who buy online will continue to increase, especially as more people gain access to the internet. In addition, as we add more online stores partners - only the best stores that your members know and trust - your eFundraising program will raise even more money.

Over the next five years, consumers' level of comfort with online functions such as e-mail and research will increase and so too will their level of participation in eCommerce. One reason for this growth is that 71% of online shoppers report they were able to find better sales and discount offers online than offline via a retail or catalog merchant, says BizRate/Shopzilla. New research from Kelsey Group and ConStat shows that 70% of US adults use the internet as an information source when shopping locally for products and services-up from 60% in October 2003. About 115 million adults searched for product information on the web last year, and of that, 98.9 million of this group went on to make purchases either online or offline. By comparison, 106.7 million adults made purchases through catalogs, direct-mail and telemarketing. Three out of five adults go online regularly and the majority of US residents now use the web to shop. These figures put the internet on par with newspapers as a local shopping information resource, and suggest that the internet is on track to surpass newspapers as a consumer influencer in the very near future.

Browsing at online retailer sites has increased almost a full hour over the past two years, according to clickz.com statistics. The 2005 survey reports that the average shopper spent about 3.1 hours per week on eRetail sites, as compared to 2.4 hours in 2003.

21% of shoppers count purchases from internet sites as part of their overall shopping, not a supplement to in-store buys. Online buyers find a large selection (64%) the #1 reason to shop online. Saving time (60%) ranks second and checking for sales (51%) is third.

Who's buying online?

Between April of 2004 and March of 2005, women were responsible for 58% of online spending versus men's 42%, according to comScore.

About two thirds of older Boomers are online (as opposed to about one quarter of people over age 65). Looked at another way, some experts estimate that nearly 20% of all people using the internet fall into the 50-to-64 age group, and that this percentage will bump up to 21.6% by 2008. Compared to the average person, the 50-to-64 year-old is more likely to visit the five following categories, in this order: pharmacy, online trading, coupons, Lotto/sweepstakes and consumer goods-based on comScore Media Metrix figures from April 2005.

The market research firm eMarketer said one of the reasons online shopping increased in 2005 was because baby boomers and young shoppers-two of the largest segments - are becoming more and more familiar and at ease with shopping online.

With a little education, these same people can learn that a portion of the money they spend online can also count as a donation to the organization they support. Sparhawk is helping organizations like yours teach supporters how this is possible.

What's selling online?

Travel remains the largest online retail category, growing from $63 billion in 2005 to an expected $119 billion in 2010 - a $56 billion dollar increase! An increase in the number of women shoppers will contribute to 14% of jewelry sales moving online by 2010. Online sales of health and beauty products will grow at an annual rate of 22%. About 30% of small appliance sales will migrate online by the end of the decade as a generation that grew up with Internet access begins to get married and attend weddings, reports Forrester research.

Home improvement, house wares, and personal care products will have the fastest growth over the next five years. Purchases of sports and fitness equipment are up 59%; furniture, appliances and equipment saw a 50% increase; and apparel and accessories rose 37%, according to Shop.org/BizRate Research.

Consumers are increasingly going online during holiday seasons. Data from Nielsen//NetRating's Holiday eShopping Index shows a 33% increase over last year. Online holiday shoppers spent more than ever in 2005. eCommerce sites rang up over $30.1 billion during the weeks leading up to Christmas, according to the weekly eSpending report produced by Goldman Sachs, Nielsen//NetRatings and Harris Interactive.

For organizations that run holiday giving campaigns, there is a huge opportunity to use this time to educate members about eFundraising, and how they can shop and donate without spending those dollars they need for Christmas presents.

And it's not just Christmas. Valentine's Day - like other gift-giving holidays - is quickly becoming an online cash cow, according to eCommerce-Guide. PayPal released new Valentine's Day online shopping trend data, gathered from February 1-13, 2006. The survey shows purchases for Valentine's Day increased 23% from 2005. Of the retail categories studied, candy and jewelry netted the most sales by online shoppers.

You can be the biggest winner

No matter what time of year, shopping on the internet is up - and will continue to go up. With such big numbers, when you show supporters how easy it is to eFundraise at the same time they shop online, they'll surely become eDonors. But you'll be the biggest winner with more money to succeed in your great cause.

We'll show you how. Sparhawk is the leader in using technology and strategy to help you increase fundraising and improve donor interaction through a multi-channel approach. With our eFundraising Mall and a portal we custom design for you, we fully support you in building the most successful eFundraising program.

Call us today at 800-568-0969 or email info@sparhawkcorp.com.


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