To: lostmymoney who wrote (12700 ) 1/15/1999 6:41:00 AM From: lostmymoney Respond to of 29382
Some comments on online business and delivery...... Just last year, for example, some 8.5 million U.S. households bought something online, up from just two million in 1997. That kind of growth, Forrester predicts, will continue, soaring from a total of $21 billion spent online for goods and services last year to more than $200 billion by the year 2000. By 2003, Forrester says that revenue from Internet shopping will account for six percent of total domestic consumer spending. The Upside That's on the consumer front. The real action, though, is slated to take place in the fertile business-to-business arena where online commerce between companies is set to explode from the $43 billion spent last year to well over a trillion dollars by 2003. As analysts are quick to point out, somebody's got to deliver the goods. And that's where the shipping industry expects to make a killing. Indeed, that's one of the reasons why Federal Express last year merged with Caliber Systems, owner of RPS Inc., which, next to UPS, is the second largest ground shipper in the U.S. That marriage will enable FedEx to continue to focus on the lucrative express-air delivery business, which it expects to grow a whopping 20 percent annually during the next two decades, leaving RPS to battle UPS on the ground. Interestingly enough, United Parcel Service's main focus has been on business-to-consumer deliveries, while FedEx and RPS have shuttled packages between businesses. Still, UPS says that its own research reveals that most of the e-commerce potential in the years ahead lies in business-to-business transactions, which it plans to aggressively pursue. In addition, solid growth in the business-to-consumer sector is also expected to surge, as more and more people become accustomed to purchasing things on the Web. And while the carriers bemoan the fact that residential deliveries have razor-thin margins -- multiple trips to a single address are a recurring problem -- growth projections for consumer sales online are too healthy to ignore. By 2003, for example, Forrester sees some 40 million U.S. households buying something online, spending nearly $110 billion for consumer goods and services.