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| Retailers Corner |
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Internet Commerce Trends, Fact & Figures A marketing survey of the Internet industry was performed during 1998 by ECNet Business Consulting. Herein is a synopsis of what they found: During 1999, we will enter the age of hyperintermediation. eCommerce will continue to rule. Nearly 60% of internet users will have made an online purchase.
During 1999, we will enter the age of hyperintermediation. A growing revolution of hub sites, will thrive by bringing together hundreds and even thousands of buyers, sellers, distributors and transaction payment processors all within a single, online marketplace. The key dynamic here is momentum. Once the aggregator gathers a critical mass of buyers, sellers and other participants, more and more of these players will keep flocking there because that’s where the action is. In addition, hub sites, particularly branded ones, add value to the customer shopping experience because they meet the all important consumer need for convenience (ultimate one-stop-shop) and they can act as impartial third-parties injecting a layer of trust, security and confidence among wary buyers. Within the retail sector alone, the percentage of total consumer eCommerce revenues captured within the confines of hub sites will increase from 15% in 1998 to 26% in 1999. Want proof? Look at Compare.net, Priceline.com, eBay, VerticalNet and others… MH-Quote! The study indicated that those who jumped on the web within the last year, only 29% graduated college, 32% at least attended college, and 33% graduated high school but never attended college. Income levels shifted dramatically in the last year: where 45% earned (annually) over $50,000 one year ago, only 35% of new users earn that much. The study said that 23% of new users earn less than $30,000 in a year compared to last year’s 16%. The study says that 41% of U.S. adults are online, which translates to roughly 81 million people. The growth and the use of the Internet for business commonly known as E-Commerce is unstoppable, due to the fact that all computer manufacturers, software developers and multinational companies continue to invest heavily to develop the Internet. Meanwhile industries such as computer software, music and entertainment, publishing and travel are leading the E-Commerce worldwide. Although it is generally agreed that E-Commerce is still at its development stage, its growth in some industries is very encouraging. For example, Amazon.com, one of the first and largest online bookshops, reported its sales in three months to 31/12/97 reached US$66 million compared with just US$8.5 million for the same period in 1996. The Internet has already established itself as a fundamental tool and a new way for doing business in the 21st century. eCommerce will continue to rule. The dollar value of businesses selling to other businesses over the web will reach $32 billion worldwide by December 31, 1999, more than double the figure in 1998. In contrast, consumer eCommerce revenues will rise to only $8 billion next year, up from $4.5 billion in 1998. Nearly 60% of internet users will have made an online purchase. Within the U.S., the percentage of active internet users who have made at least one purchase online will rise to 58%, or 36.1 million Americans in 1999 (versus only. 31% and 16.8 million in 1998). These 36.1 million online buyers will represent nearly. 17% of the total population in America aged 14+. New research points out that at the end of 1997, there were 102 million Internet users worldwide and 1.6 million www sites on the Internet in January 1997, as reported by Netree’s Internet Services. In summary, the main reason for the fast trend is that technology is increasing and changing the way information is delivered and business is transacted, and, people are looking for global opportunities to market their products and services. Moreover, the Internet is becoming relevant to business as a resource for information, as a way of online ordering and supplying and as a method of communication in the great efficiency of email. Web sites and email addresses are commonly included as essential contact points just like telephone and fax numbers in many advertising and promotional materials. This report and more can be found at www.emarketer.com. Don't get left behind! Get your business online today. Gain access to over 3,500 MH-specific users daily. Contact MH-Quote now: Jason AdamsMH-Quote, Inc. Tel 800.868.1523 |