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To: Lee who wrote (87186)	12/28/1998 5:13:00 PM
From: Mohan Marette	Respond to of 176387

Online Revenues Up 230% Over Last Year Hi Lee: I don't know whether Dell or Dell-like companies are included in the study but here is the report see what you make of it. ========================================= Silver Spring, MD – (December 28, 1998) – The Boston Consulting Group (BCG) and shop.org today released the results of another round of research into online shopping. The current study, which tracks online sales for the Christmas shopping season, shows continued growth in orders placed by consumers and revenues enjoyed by retailers. BCG collected data from leading online retailers in major gift categories for the period November 23 to December 20. Online retailers surveyed included those in apparel, books and music, home and garden, specialty foods, electronic goods and related retailing categories. The results show that year over year revenue for the holiday season more than tripled, growing by 230%. The size of the average order was $55, up 6% over the average order placed last year during this same period. These results are consistent with the findings of The State of Online Retailing, a groundbreaking study released by shop.org and BCG in mid-November of this year. That study showed that online sales were growing in excess of 200% annually and projected online retailer revenues of over $13 billion for 1998. According to shop.org chair Cliff Sharples, "The growth of online shopping during the pre-Christmas period confirms the shop.org/BCG research into online shopping patterns earlier in the year. Sales were particularly strong during the holiday periods, capping a banner year for online retailing." "This holiday season marks the year that online retailing moved from an interesting consumer experiment to an accepted retail alternative," notes BCG senior vice-president David Pecaut. "The 24-hour a day access to Internet stores, no crowds and line-ups, and the convenience of shipping gifts directly to distant family and friends have struck a chord with a rapidly growing segment of wired consumers." (Source:The Boston Consulting Group, Inc.)

To: Lee who wrote (87186)	12/28/1998 7:33:00 PM
From: Boplicity	Respond to of 176387

I'm sure it doesn't inc. dell biz. I will add it right now to the site, done look at the top of the page I gave willie a section of his own. Or you can send me a PM with your address, name on top of card number on the card and exp. date. Greg

To: Lee who wrote (87186)	12/28/1998 7:59:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 176387

Hi Lee: Looks like Dell & Dell-likes are included in the Boston Consulting study. There are some very important and noteworthy points here,I am sure you will know them when you see them. (Source:Shop.org via Boston Consulting) ================================= FIRST EVER, IN-DEPTH STUDY OF ONLINE RETAILERS SETS NEW BENCHMARKS AND IDENTIFIES STRATEGIC FRAMEWORK FOR THE FUTURE OF RETAILING ON THE WEB Shop.org Report, Conducted by The Boston Consulting Group, Deepens Understanding of Forces Shaping Extraordinary Growth of E-commerce; Debunks Online Retailing Myths SILVER SPRING, MD (November 18, 1998) The first comprehensive, data-rich report on the online retailing industry was released today by shop.org, the online retailers association. The report"The State of Online Retailing"is the result of an in-depth survey and analysis of 127 online retailers in seven categories conducted by The Boston Consulting Group (BCG), the management consulting firm. The shop.org/BCG report illuminates industry best practices and tracks performance benchmarking data based on the study of leading online retailers of apparel, computer goods, food & wine, home & garden products, gifts, entertainment and services. (Industry size estimates in the report were derived based on hard revenue data equating to 61% of estimated online revenues.) The study is the first in a series of semi-annual reports by shop.org and BCG that will track the online retailing industry from the retailer perspective, providing needed benchmarks for the industry and the general public. A New Perspective The shop.org/BCG study is distinctive because it examines hard data from a significant sample of online retailers, as opposed to the behavior of online consumers or a few select businesses. "The State of Online Retailing" provides a formal roadmap for the future of retailing that takes into account the profound and rapidly evolving impact of e-commerce. The report, designed to deepen understanding of the forces driving online retailing's evolution and growth, clarifies: Myths about online retailing and its future How the convergence of offline and online retailing will drive future growth Best practices that leading online retailers are employing What is and isn't inevitable about e-commerce and its impact on retailing overall. The challenges to growth that online retailers now face The size and growth of online retailing to date "Online retailing is in such a dynamic, pivotal state right now that getting a fix on where we are, where we've been and where we're going is very difficult. Through exhaustive research among online retailers, this report delivers a unique database of best practices, insights and trends that will help online retailers and traditional retailers make smart decisions," said Donna M. Iucolano, vice presidentinteractive services, 1-800-FLOWERS, Inc. and a founding member and board member of shop.org. David Pecaut, the senior vice president at BCG who oversaw the study, notes: "The report sends an important message to the retail industry: The most successful players will be the ones who can leverage the Internet to develop a shopping experience that creates value for consumers and that is difficult for other online and offline retailers to replicate. This means that the industry will be required to develop online business models that are flexible enough to accommodate major growth. The Internet is emerging as a critical selling forum for all types of products and services and all types retailers, including those who will continue to operate traditional stores." Added Cliff Sharples, president and CEO of Garden Escape, Inc. and founding chairman of shop.org: "This comprehensive study makes it clear that the underlying economics and growth of online retail are sustainable. Online retailers are investing now to reap rewards in the future. The study also challenges the belief that online and offline retailing will remain separate and distinct channels. The shop.org/BCG series of reports can provide all retailers with insights that, until now, had not been at their fingertips but that are crucial in setting effective, long-range strategies." Key Statistical Findings The in-depth survey and analysis of 127 online retailers in seven categories resulted in a number of key statistical findings: While still in an emerging state, the online retail market is experiencing exponential growth‹in excess of 200% per year. The top-10 publicly traded online retailers have experienced year-over-year revenue growth in excess of 160%. Growth in traffic has been rapid, and revenue-per-order is increasing. Only 5% of unique visitors to sites become customers; only 1.6% of visits result in purchases. Small improvements in conversion result in dramatic increases in revenue. Online revenues generated by North American-based retailers for the first six months of 1998 were $4.4 billionless than 1% of overall retail revenue in North America. However, full year 1998 online revenues for retailers will surpass $13 billion. Multichannel retailers migrating to the Internet account for the bulk of online revenues. Multichannel retailers, like Dell, Schwab, Eddie Bauer and Lands End, account for 59% of revenues. Generally, multichannel retailers experience better conversion and loyalty. Online retailers are investing heavily now to grow their customer bases. 65% of the revenues generated by the shop.org/BCG sample of online retailers are reinvested in marketing and advertising, compared with 4% for most traditional stores. Online retailers' marketing and advertising spending per order generated is $26, compared with $2.50 for traditional stores. Although there is a proliferation of retailers selling online, revenues are still concentrated in only a few mature sites. The 10 largest sites account for 50% of revenues. *Computer goods, entertainment, travel and discount brokerage account for over 80% of the online retail market.* ........................