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To: Patrick E.McDaniel who wrote (103631)2/22/1999 9:52:00 AM
From: Mohan Marette  Respond to of 176387
 
300% Growth at WEB shopping sites.

Pat:
Here are some interesting stat on Web shopping.
===========================================
(ActiveMedia)

300% GROWTH AT WEB SHOPPING SITES

Consumers Buy, Then Come Back for More!

December 2, 1998

In the past year, retail, entertainment, and other websites catering to consumers (half of all online business sites) have been the fastest-growing category on the Web today. Average monthly sales revenue (among retail sites that generated revenue) now stands at $40,273, up from $13,260 at the same point in 1997-a dramatic increase.

Retail sites are also primary beneficiaries of Web advertising revenue. Advertising flows to sites with many visits, and high-volume retail sites have been quick to recognize the opportunity to build a secondary revenue stream from transient visitors. Advertising for complimentary products allows sites to harvest their primary revenue stream from visitors with a direct interest in the products and services, and to draw the secondary revenue stream from those who may have greater interests elsewhere.

There's no single "sweet spot" for retail price points. More than a third of the retail sites sell products for under $100, and nearly as many sell products in a range between $100 and $999. One-in-six sites promotes products costing over a thousand dollars. Clearly the Web is effective across a wide range of price points.

However, the very low end remains the one area where the Web is not an effective sales vehicle; fewer than 2% of all retail websites sell products costing less than ten dollars.

TYPICAL SIZE OF RETAIL TRANSACTIONS


Price Percent of Transactions
Less than $10 2%
$10-49 24%
$50-99 13%
$100-499 25%
$500-999 7%
$100-9,999 13%
$10,000+ 4%


Data from Real Numbers Behind 'Net Profits 1998', ActivMedia, Inc. 1998