U.S. SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C.  20549
                                FORM 8-K

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934

Date of Report (Date of earliest event reported):
                                                January 18, 2000

                      Commission File No.   0-22524

                      REAL GOODS TRADING CORPORATION
(Exact name of small business issuer as specified in its charter)

     California                        68-0227324
(State or other jurisdiction of     (IRS Employer incorporation
 or organization)                    Identification Number)

 3440 Airway Drive, Santa Rosa  California          95403
(Address of principal executive offices)          (Zip Code)

Issuer's telephone number, including area code:  (707) 542-2600

Item 5.  Other events

The Registrant hereby incorporates by reference the information
contained in Attachment A hereto in response to this Item 5.

REAL GOODS INTERNET SALES SOAR TO 350% OF PRIOR YEAR IN 3RD
QUARTER; INTERNET SALES REACH 16% OF TOTAL CATALOG SALES IN
DECEMER

Santa Rosa, California, January 18, 2000... Real Goods Trading
Corporation (Nasdaq: RGTC, Chicago Exchange: RGT), a California
based retailer of environmental and renewable energy products
using catalogs, retail stores, and the Internet, announced today
that its Internet sales were 350% of the prior year during the
October through December quarter just ended.  Total Internet
sales for the first nine months of the Company's fiscal year 2000
which ends on 3/31/2000 passed the $1,000,000 mark for the first
time in the Company's history.  For the quarter, e-commerce gross
sales reached $633,000, compared to $181,000 for the comparable
period last year.  E-commerce sales reached approximately 8.3% of
total Company sales in the fiscal third quarter ending 12/25/99.
Total sales for the Company include sales from its catalog,
Internet, five retail stores and Renewable Energy division.

Chairman and CEO John Schaeffer said, " We are very excited about
our growing e-commerce business.  As a company concerned about
the environment, it's exciting to be involved in a new media
which uses fewer resources than catalogs and stores and which
allows us to reach a national audience.  We have committed
significant resources to growing our e-commerce activities and we
expect to see some great strides in coming months and years.
With the planned upgrade of our site in February, 2000, and with
our strategic alliance with WholePeople.com which launches in
Spring 2000, we are anticipating great growth in this area over
the next year."

President Mark Swedlund added,  " In the month of December, our
e-commerce business equaled 16% of catalog sales in December of
this fiscal year, a quantum jump from the 5% it represented in
December of the prior year.  While we are seeing our customers
move towards the Internet, we also see the emergence of the
Internet as a valuable source for new customers.  Our affiliate
programs and strategic relationships really began to produce this
season. Currently about half of our e-commerce purchases come
from people who have never before purchased from us, so we are
beginning to see proof that the Internet works as a way to build
profitable new business for the Company.  We've also been able to
build this part of our business without the give-aways and
blatant price-cutting of other websites."

John Deneen, Director of E-commerce, added, "We've committed
significant resources to developing an advanced website which
will be launched early in the year.  The results of this holiday
season demonstrate the wisdom of that decision.  It's clear our
market is moving to the Internet and we will be there with a new
site which includes the very best shopping experiences with
adepth of content about renewable energy and sustainable living.
I'm convinced the future is bright for us on the Internet."

The following constitutes a "Safe Harbor" statement under the
Private Securities Litigation Reform Act of 1995: This press
release contains forward-looking statements that involve a number
of risks and uncertainties. Important factors that could cause
actual results to differ materially from those indicated by such
forward-looking statements are set forth under the heading
"Certain Considerations" in the Company's annual report on Form
10-KSB for the year ended March 31, 1999. These include risks and
uncertainties relating to sales growth, availability of capital,
customer preferences and the general economy.

Real Goods Trading Corporation sells a broad range of renewable
energy and sustainable living products through its catalogs and
retail stores and on its Website (www.realgoods.com) (call
1.800.762.7325 for a free catalog). The Company's common stock is
publicly traded on the Chicago Stock Exchange under the symbol
"RGT", on the Nasdaq Small Cap market under the symbol "RGTC",
and through a bulletin board maintained on its web site
(http://www.realgoods.com).


                            SIGNATURES

Pursuant to the requirements on the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.


                              REAL GOODS TRADING CORPORATION
                                        (Registrant)


Date:  January 18, 2000

                                   By:LESLIE B. SEELY
                                      Leslie B. Seely
                                      Chief Financial Officer