More interesting reading from AllECommerce (March 8-14 Supplement):
ECommerce is the Dominant Theme at Spring Internet World
At this week's Spring Internet World in Los Angeles, most of the 600 exhibitors' booths
are offering software and services to sell products over the Internet. Zona Research
analyst Vernon Keenan agreed, explaining. Odyssey Ventures released a survey showing
that 7 million households purchased something online in the second half of last year.
Odyssey President Nick Donatiello said, "We're starting to see now that shopping on the
Web is for real. It's small, but it's growing." The research report was critical of the nation's
banks and the relatively low acceptance of electronic banking services. "It's pathetic,"
Donatiello told The Wall Street Journal. "Banks should be ashamed" that only 15 percent
of online households have used online banking services. He said this means the online
financial marketplace is wide open for ventures from Microsoft and Intuit.
The Survey Says. People are Buying Online
Esearch, a source for internet market research data collection, released the findings of its
most recent survey on online shopping/buying habits. The report shows trends in online
shopping, comparing the 1998 results from a 1997 survey on the same topic. Data was
collected from nearly 3,000 netizens about their online buying habits.
The findings indicated that nearly 70% of the sample had conducted some type of online
transaction; and of these, 61% had purchased a product or service. In 1997, slightly more
than half the sample (52%) had conducted some type of online transaction and that of
these, nearly all had purchased a product or service. More people are conducting
transactions online, but the percentage of product/services buys is not increasing at the
same rate.
The findings further indicate that both email and web page solicitations (resulting in a
sale) were equally effective. This differs from the 1997 results, which sighted web sites as
the most successful means of solicitation. Both surveys indicate that convenience and
time savings drive online purchases.
1997 and 1998 respondents are consistent in the key reasons people are reluctant to
purchase on-line, which is a lack of trust in Internet security.
Specifics for 1998 include:
Almost 70% of respondents have conducted a monetary transaction online. Of this 70%,
about 61% had purchased a product or service. The most frequently purchased items were
leisure items such as books, games and toys (40%), computer hardware/software (39%),
and personal items such as clothing and jewelry (23.3%). Respondents stated that
convenience (44%), better deals (37%), less amount of time taken (37%), and availability of
items (28%) were the reasons that prompted them to purchase on-line. Brand name items
(36%) and specialty items (36%) were purchased online.
45% of US Homes own a PC
Computer Intelligence reports that more than 45% of U.S. homes now own personal
computers, up from 40% in 1996. As might be expected, households with the highest
incomes and those with children are more likely to be PC owners: 80% of homes with
annual incomes of $100,000 or more own PCs, compared with 25% of homes with income
under $30,000; and 60% of families with children own PCs, compared with 38% of childless
households. Industry sold more than 5 million home PCs last year, mostly to
high-income households. Check out the complete story at PC World.
Subscriptions on the Internet
After March 17th, Business Week online will charge a US$35 yearly subscription fee if
the visitor is not a subsciber to the print version. A message at the site states,
"unrestricted access to the entire site will be available only to readers who register and
subscribe. Limited access will be available to anyone who registers, but does not
subscribe." The magazine's Daily Briefing feature and selected editorial content will be
available without charge.
Microsoft's Slate magazine is off to what its publisher calls "a good start." Slate has
signed up 16,000 subscribers for access to the formerly free online magazine. Almost 35
percent of those customers were added to the rolls last weekend, prior to the Monday
deadline for the charter subscription rate of US$19.95 a year. The primary vehicle for
subscription sales was email targeted to the 100,000 email addresses that were registered
on the site.
Meanwhile, CBS Sportsline president Michael Levy said about 15 percent of his service's
revenue comes from the subscription service. He said the company is developing a "more
comprehensive package," which it expects to market to 7 million people. The Olympics
were very good for the site, he reported: $2 million in revenue was generated from ten
advertisers on the site's Olympics areas.
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