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The 10 Cities That Shop Most Online: Bundle.com

The Huffington Post     First Posted: 07/13/11 04:43 PM ET   Updated: 09/11/11 06:12 AM ET

Internet commerce has become a part of American life, and some cities have become particularly involved in shopping online, according to personal finance and business site bundle.com.

Internet sales increased 12.6 percent last year, comparison to 2009, and that growth is expected to continue at an annual rate of 10 percent for the next half decade, according to Forrester Research. So bundle.com decided to figure out which cities are craziest about online shopping, looking at the 65 largest cities in the United States and examining online ordering trends from 30 of the top online retailers, including Amazon.com and Overstock.com.

The site also took into account the city's proximity to major e-retailer distribution centers, the level of sales tax rates and the percentage of the population with internet access.

Bundle.com's findings, seen in this infographic, show high internet usage rates and multiple distribution centers have varying effects on the popularity of online shopping in cities. The people of Miami, for example, make five times more online transactions than the national average, despite having lower internet usage and fewer distribution centers than some other cities.

Sales tax rates seemed to have little bearing on the popularity of online shipping, with Minnesota and California, two states with some of the highest tax rates, home to three of the ten cities that shop most online -- Minneapolis, St. Paul and San Francisco.

The whole issue surrounding sales taxes remains a controversial issue in online shopping, however. Previously no tax was added to transactions with customers who live in states where the retailer doesn't have a physical presence. That could soon change, according to the Associated Press.

Below are the ten states that shop the most online according to bundle.com.

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  • America's E-Commerce Capitals

    See the full-resolution infographic by Valerie Willis at <a href="http://bit.ly/qctQaT" target="_hplink">bundle.com</a>.

  • 10. Orlando, FL

    <strong>Money spent shopping online compared to national average:</strong> 1.9X more <strong>Number of online transactions compared to national average:</strong> 1.92X more <strong>Percentage of residents who access the Internet:</strong> 55 percent <strong>Sales tax rate:</strong> 6 percent <strong>Number of major e-retailer distribution centers:</strong> 19 Read more at <a href="http://www.bundle.com" target="_hplink">bundle.com</a>.

  • 9. Minneapolis, MN

    <strong>Money spent shopping online compared to national average:</strong> 1.92X more <strong>Number of online transactions compared to national average:</strong> 2.2X more <strong>Percentage of residents who access the Internet:</strong> 51 percent <strong>Sales tax rate:</strong> 6.88 percent <strong>Number of major e-retailer distribution centers:</strong> 5 Read more at <a href="http://www.bundle.com" target="_hplink">bundle.com</a>.

  • 8. St. Paul, MN

    <strong>Money spent shopping online compared to national average:</strong> 2X more <strong>Number of online transactions compared to national average:</strong> 2.16X more <strong>Percentage of residents who access the Internet:</strong> 51 percent <strong>Sales tax rate:</strong> 6.88 percent <strong>Number of major e-retailer distribution centers:</strong> 5 Read more at <a href="http://www.bundle.com" target="_hplink">bundle.com</a>.

  • 7. Washington D.C.

    <strong>Money spent shopping online compared to national average:</strong> 2.14X more <strong>Number of online transactions compared to national average:</strong> 2.3X more <strong>Percentage of residents who access the Internet:</strong> 58 percent <strong>Sales tax rate:</strong> 6 percent <strong>Number of major e-retailer distribution centers:</strong> 0 Read more at <a href="http://www.bundle.com" target="_hplink">bundle.com</a>.

  • 6. Austin, TX

    <strong>Money spent shopping online compared to national average:</strong> 2.15X more <strong>Number of online transactions compared to national average:</strong> 2.2X more <strong>Percentage of residents who access the Internet:</strong> 58 percent <strong>Sales tax rate:</strong> 6.25 percent <strong>Number of major e-retailer distribution centers:</strong> 27 Read more at <a href="http://www.bundle.com" target="_hplink">bundle.com</a>.

  • 5. Pittsburgh, PA

    <strong>Money spent shopping online compared to national average:</strong> 2.4X more <strong>Number of online transactions compared to national average:</strong> 2.4X more <strong>Percentage of residents who access the Internet:</strong> 44 percent <strong>Sales tax rate:</strong> 6 percent <strong>Number of major e-retailer distribution centers:</strong> 19 Read more at <a href="http://www.bundle.com" target="_hplink">bundle.com</a>.

  • 4. St. Louis, MO

    <strong>Money spent shopping online compared to national average:</strong> 2.56X more <strong>Number of online transactions compared to national average:</strong> 2.63X more <strong>Percentage of residents who access the Internet:</strong> 46 percent <strong>Sales tax rate:</strong> 4.23 percent <strong>Number of major e-retailer distribution centers:</strong> 7 Read more at <a href="http://www.bundle.com" target="_hplink">bundle.com</a>.

  • 3. San Francisco, CA

    <strong>Money spent shopping online compared to national average:</strong> 2.64X more <strong>Number of online transactions compared to national average:</strong> 2.67X more <strong>Percentage of residents who access the Internet:</strong> 62 percent <strong>Sales tax rate:</strong> 8.25 percent (rate from 2010. Dropped by 1 percent in July 2011) <strong>Number of major e-retailer distribution centers:</strong> 29 Read more at <a href="http://www.bundle.com" target="_hplink">bundle.com</a>.

  • 2. Manhattan, NY

    <strong>Money spent shopping online compared to national average:</strong> 3.5X more <strong>Number of online transactions compared to national average:</strong> 3.67X more <strong>Percentage of residents who access the Internet:</strong> 55 percent <strong>Sales tax rate:</strong> 4 percent <strong>Number of major e-retailer distribution centers:</strong> 13 Read more at <a href="http://www.bundle.com" target="_hplink">bundle.com</a>.

  • 1. Miami, FL

    <strong>Money spent shopping online compared to national average:</strong> 5.6X more <strong>Number of online transactions compared to national average:</strong> 5X more <strong>Percentage of residents who access the Internet:</strong> 55 percent <strong>Sales tax rate:</strong> 6 percent <strong>Number of major e-retailer distribution centers:</strong> 19 Read more at <a href="http://www.bundle.com" target="_hplink">bundle.com</a>.

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