Online Consumer Sales Keep Increasing
US consumer e-commerce sales will reach $37 billion by year-end 2000, double from the previous year and will grow by a factor of 13 overall from 1998 to 2003, according to a report by eMarketer.
US consumer e-commerce sales will reach $37 billion by year-end 2000, double from the previous year and will grow by a factor of 13 overall from 1998 to 2003, according to a report by eMarketer.
US consumer e-commerce sales will reach $37 billion by year-end 2000, double from the previous year and will grow by a factor of 13 overall from 1998 to 2003, according to a report by eMarketer.
eMarketer’s report, “eCommerce: B2C Report,” also found that shoppers are buying online at increasing frequency and that e-retail spending will top $100 billion by 2003. The average US Internet buyer will purchase $627 worth of goods online in 2000, an increase from $500 in 1999. By 2003, that figure will increase to $1,033. The report also indicates that most Net shoppers log on with the intention of making a specific purchase and devote most of their effort to comparison-shopping.
“In a matter of months, shopping on the Web has matured from a small e-savvy few to a viable alternative for US consumers,” said Geoffrey Ramsey, Statsmaster at eMarketer. “The number of online browsers and purchasers has increased significantly since 1999 and Web commerce growth will continue to accelerate, beyond even previously aggressive expectations.”
A report from ActivMedia found the average e-commerce transaction by consumers who have been online more than five years is twice that of the newest to the Internet consumers; averaging $388 as compared with $187 for those online one year. While the ratio of dollars spent online vs. offline for similar goods purchased online in the past month remains constant at roughly $3 online-to-$1 offline, dollars spent online rises with time online.
According to ActivMedia’s “Capturing Online Markets: The Definitive Guide to Consumer Loyalty,” consumers who purchase Computers/Electronics (71 percent), Travel/Entertainment (71 percent), and Investments (71 percent) allocate the largest proportion of total spending for products to the online channel. These markets have had the longest time to mature online, and are also influenced by purchase criteria that lend themselves well to online comparison, evaluation, and acquisition. In contrast, buyers in Major markets allocate a slightly smaller portion (64 percent) of all their purchasing to online.
Average E-Commerce Transaction Size By Year Started Using Internet |
|
---|---|
Year Came Online | Average Transaction |
1995 or earlier | $388 |
1996 to 1997 | $298 |
1998 to 1999 | $187 |
Source: ActivMedia |
More than 60 percent of consumers expect their online spending to increase over the next 12 months, according to ActivMedia. Another third (32 percent) expect that their spending will remain the same as it has in the past. Only a few (7 percent) expect their online spending to decrease. Among those shoppers who expect to increase their online spending in the next year, they expect an average increase of about 43 percent. For those few who expect a decrease, an average of a 69 percent decrease is expected.
ActivMedia also found that as time has progressed, the interval between going online and making a purchase has shortened dramatically. Shoppers who first went online to find information about purchases four or more years ago typically did not make an online purchase until they had been online an average of 22 months. In marked contrast, people who only went online recently (in the past year or so) waited an average of four months before making their first Internet purchase.
Other findings from eMarketer’s report include: