CUSTOMERS
total
online shopping population
|
2002 |
66
milion
|
2007
(projected) |
132
million
|
US
Internet users:
frequency of purchases
|
at
least one online purchase |
84%
|
regular
online purchases |
less
than 1/3
|
Source:
Intermarket
Group, Jan 2002
Average age of online shoppers is increasing.
Source:
Jupiter
Media Metrix, Mar 2002
Why
consumers buy ONLINE
|
Convenience |
84%
|
Product
Depth |
41%
|
Better
Experience |
36%
|
Rich
Content |
31%
|
Value |
26%
|
Brand |
20%
|
Customer
Service |
11%
|
Interactive
Tools |
7%
|
Novelty |
4%
|
Source:
Forrester
Research, Sep 2002
BUSINESSES:
RETAIL
active
websites that are
e-commerce capable
|
2002 |
3,411,099
(= 12.5% of all active websites)
|
Source: NetFactual,
Jun 2002
percentage
of web retailers who are profitable
|
1999 |
38%
(Source: Wall Street Journal, April 18, 2000)
|
2000 |
|
2001 |
|
total
US online retail sales (US $)
|
2000 |
$28
billion
|
2001 |
$31.4
billion
|
2002
(projected) |
$38
billion
|
|
|
|
|
2006
(projected)
|
|
total
worldwide online sales:
retail and B2B
(US $)
|
2000 |
$357
billion
|
2001 |
$600
billion
|
2002
(projected) |
over
$1 trillion
(83% of this is B2B)
|
Source: E-Commerce
Times, Feb 2002
percentage
of worldwide sales
represented by US
|
2002
(projected) |
40%
|
2006
(projected) |
38%
|
Source:
Comscore
Networks, April 2002
most
active US e-commerce sectors
|
travel:
airline
tickets, car rentals, cruise / tour sales, rentals
(41% of all online sales)
|
computer
hardware
|
|
|
consumer
electronics
|
Source:
Comscore
Networks, April 2002 and TechNews,
Mar 2002
most
active European e-commerce sectors
|
books
|
music
CDs |
clothing
and shoes
|
tourism
|
Source:
GfK-Webgauge,
June 2002
online
revenue of top 10 e-retailers
(in US dollars), 2001
|
1 |
Amazon.com |
|
2 |
Office
Depot |
|
3 |
Staples |
|
4 |
Gateway |
|
5 |
Costco
Wholesale |
|
6 |
Barnes
& Noble.com |
|
7 |
Buy.com |
|
8 |
QVC.com |
|
9 |
Spiegel
Group |
|
10 |
J.C.
Penney |
|
Source:
RetailForward,
Jul. 2002
Marketing
effectiveness is improving:
marketing
costs per online order
|
2000 |
$20
|
2001 |
$12
|
Source:
Shop.org,
June 2002
customer
acquisition costs
|
2000 |
$29
|
2001 |
$14
|
Source: Shop.org,
June 2002
percentage
of sales due to repeat buyers
|
2000 |
40%
|
2001 |
53%
|
Source: Shop.org,
June 2002
on
creating repeat buyers
|
"Today,
e-commerce sites looking to turn browsing visitors
into repeat buyers must move well beyond the
basics of design, pricing and good salesmanship.
In a competitive environment, companies must
also go the extra mile to make the purchase
experience convenient and stress-free for their
time-strapped customers.
"Satisfied
shoppers spend more, they tell their friends,
and they are more likely to return.
"A
company cuts its chances of winning repeat business
if a first-time visitor finds a site too slow
to use or too hard to navigate.
"Companies
that offer highly personalized services, incentive-based
programs and multichannel options -- all designed
to make the purchase experience easier and more
valuable for consumers -- are proving that first-time
buyers can be converted to frequent purchasers.
"Experts
agreed that Amazon has long been a leader in
terms of features that encourage repeat business.
For example, the company not only introduced
one-click shopping, but also lets customers
choose among multiple credit card numbers that
can be stored for various purchases.
"But
not all sites can afford the personalization
technologies that have helped propel companies
like Lands' End, eBay (Nasdaq: EBAY) and Amazon.com
(Nasdaq: AMZN) to the top."
|
Source:
ECommerce
Times, Aug 2002
holiday
sales
|
During
the 2001 holiday season, online sales were lost
to phenomenal discounts offered at physical
stores. Online retailers will have to come up
with new methods to entice consumers to purchase
online in during the forthcoming holiday period.
|
Source: Nielsen
NetRatings, Aug. 2002
BUSINESSES:
B2B
worldwide
B2B Internet-based trading of goods and services
(US $)
|
2002
(projected) |
$823.4
billion
|
2004
(projected) |
$2.4
trillion
|
Source: CyberAtlas,
Mar 2002
Most
B2B sales consist of volume purchasing.
Source: ECommerce
Times, Feb 2002
ECOMMERCE
TRUSTWORTHINESS
Online
consumer losses due to
credit card fraud (US $)
|
2001 |
$700
million
(= 1900% total offline credit card fraud)
(= 1.14% of total sales)
|
Source: TechNews.com,
Mar 2002
|