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The National Retail Federation estimates overall retail will grow 3.5 percent in 2008, the U.S. Census Bureau projects that ecommerce sales will increase 17 percent in the period, according to a new report from Retail Systems Research.

Major retailers that generate $5 billion or more in annual revenue have an advantage, as they have more experience in multi-channel retailing. They are more likely than small and midsize retailers to view the online channel as an extension of their business instead of just an outlet for excess inventory.

Larger retailers are more likely to offer the option to order in-store for fulfillment through other channels (59% compared to 42% for all respondents), or to buy online and via catalog for in-store pickup (59% compared to only 35% for all respondents).

More significantly, large retailers have a greater willingness to partner with suppliers to allow direct shipments from the supplier to the customer (82% compared to 49% of all respondents).

Retailers continue to face the challenge of making in-store inventory visible to online channels and vice versa, with large retailers doing slightly better than others.

The report concludes," Just as consumers led the way in using the web as a research tool for their purchases (and retailers responded by making product information available to consumers via their websites), they also point the way forward with cross-channel buying behaviors."