Online retailers have had to keep prices on merchandise low and offer promotions to entice customers who could find lower prices and better selections at other companies with a mouse click. Investors demand details Some e-tailers have caught the eye of investors and analysts because they are doing something innovative. The company is 60-percent owned by Kmart, and the remainder is owned by private investors. Many investors have all but quit pouring money into e-commerce sites until they see detailed plans for making money and keeping competitors at bay, said Rajesh Kothari, director of GMA Capital in Farmington Hills. Now people are asking how do they get to profitability.
Analysts say investors are leery of purely e-commerce retail investments.
What's hurting e-tailers most right now is uncertainty. People don't know what works. Despite this, online retailing revenue is growing. The growth reflects the increasing popularity of online shopping and tells retailers it's a business that can't be ignored. Web sites provide customers with another avenue for easy shopping, a necessity for retailers who want to be ready for the future.