Online retailers should put any profits they make back into their business, an expert has suggested, investing in improvements such as managed hosting.
Professor Joshua Bamfield, director of the Centre for Retail Research, called for companies to take the long-term approach and to focus on growing their operations.
He said that it is possible that, in the next two days, nearly three quarters of all sales are made over the internet, making it especially important that companies invest in the best possible infrastructure, such as a top managed hosting deal.
"Nobody is revealing how much they are making - I think it's one of those games where you've got to keep on spending," he explained.
Among the key advantages to selling over the internet that Professor Bamfield highlighted is the option for retailers to offer a much more complete catalogue of products due to the lack of space constraints.
The IMRG Capgemini e-Retail Sales Index recently showed that shoppers spent £5 billion online in July, up 18 per cent year-on-year.