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BeOnTheNet's
Electronic Commerce |
BeOnTheNet's
Electronic Commerce
Newsletter
BeOnTheNet's Electronic Commerce Sentinel Volume 1, Issue 3
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Read 20 Reasons for your business to be on the Internet at http://www.beonthenet.com/20reasons.html
In This Issue:
Survey Predicts 23% of US Households will be online by 1998
Home Users are comfortable Making purchases on the Web
Latest US Government figures show that the Internet is growing faster than expected.
Getting The Word Out Via The Web is more important than ever
30,000 Schools & Libraries apply for New Government Discount Internet Hookup Program
U.S. Seeks Global Ban on Internet Taxes
Web Lowers Sales & Marketing Costs - U.S. Dept. of Commerce
The Real Numbers on Internet Profitability - A new Study by ActiveMedia
( www.activemedia)
Short Notes - A collection of interesting Internet Ecommerce quotes
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Survey Predicts 23% of US Households will be online By 1998
According to IDC's semiannual 1997 World Wide Web Survey of Home and Business Users ( http://www.idc.com/ ) . 23% of US Households will be online this year, this is up substantially in the last 18 months from the 13% of households who were on line at the end of 1996. In addition nearly 60% of those surveyed said that they were online daily.
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Home Users are comfortable Making purchases on the Web
The same IDC survey found that many retailers sold more than they expected during the 1997 holiday season. Nearly 75% of all Internet commerce is a direct purchase via electronic shopping over the Web. This shows that home users are comfortable completing a purchase transaction via the Web.
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E-COMMERCE REVENUES TO LEAP OVER $1.2 TRILLION BY 2002
1997 Closes at $22 Billion (U.S.) -- Up 700%!
ActivMedia (http://www.activmedia.com/ ) announced that Electronic Commerce will exceed $1.2 trillion by 2002, based upon the 5th annual "Real Numbers behind 'Net Profits" study of Web-generated revenues,.
Information gathered in this study predicts that due to increases in the number of Web users, Web Sites and per site revenue that E-Commerce Revenue will be close to $75 billion!
( Editors Note) When you consider that more and more businesses are switching their purchasing patterns from their conventional methods to the Internet, this tremendous leap seems totally feasible in fact, in my opinion, conservative
ActivMedia says that "growth continues broadly across all Web sectors: retail, B-to-B, manufacturing, services, computing, networking, and telecom, as well as the Web's own ISP's and marketing/design consultants. "
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Latest US Government figures show that the Internet is growing faster than expected.
According to "The Emerging Digital Economy" - the latest snapshot on Internet growth by the US Department of Commerce, Internet traffic is doubling every 100 days. They say that 62 million Americans are now using the Net! World Wide Internet users now number 100 million and the commerce department anticipates that the number of world wide users will reach one billion by 2005!
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Net Users are more comfortable purchasing online
10 million US & Canada users had made purchases on the Net by the end of 1997, a dramatic increase from the 7.4 million online buyers just 6 months earlier. People aregetting more and more comfortable buying things on the Internet.
The Internet is the fastest growing technology ever! It took 38 years before there wher 50 million radio listeners, It took 13 years before TV reached that number while the Internet has exceeded that number in only four years.
The Government agency said that business-to-business Internet purchases could reach $300 billion per year by 2002. More and more American businesses routinely save hundreds of millions of dollars by lowering their costs and reducing inventories by using the Internet for purchasing.
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Getting The Word Out Via The Web is more important than ever
According to the 4th Annual Middleburg/Ross (Columbia University) "Media in Cyberspace" Study:
This is why you should have a "Press Kit" on your web site!
- Almost 50% of Journalists surveyed go online daily.
- 9% Say that it is a primary source of their story ideas.
- 93% go online at least occasionally.
- "We believe the surveys (over the last 40 months) document that online technologies have already changed the nature of news operations more in those 40 months than in the previous 40 years. "
- "Almost all journalists now use online tools for researching and reporting." Most use it for gathering images and other materials that had to be physically carried to the newsroom just a few years ago.
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30,000 Schools & Libraries apply for New Government Discount Internet Hookup Program
On April 22, 1998 Vice President Gore announced that 30,000 Schools and Libraries had applied for the Government's New "E-Rate" program. "With the new E-rate program, low-income schools can get up to a 90 percent discount to hook their classrooms up to the Internet." Gore said.
The program is an effort to narrow the divide between those students with access to the Internet and those without it. Currently, 27 percent of classrooms are now connected to the Internet.
Gore said, "We must bridge the digital divide between the information haves and the have nots to ensure that all Americans can take advantage of the Internet and put Information Age tools in the hands of all of our children."
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U.S. Seeks Global Ban on Internet Taxes
President Clinton said he will attend next month's World Trade Organization summit to push for an agreement to keep the Internet a tax-free trade zone.
Clinton said that the U.S. wants to ensure "that International trade on the Internet remains free of new discriminatory taxes, free of tariffs, free from burdens and regulations, and safe from piracy."
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The Real Numbers on Internet Profitability - A new Study by ActiveMedia
( www.activemedia)
According to ActiveMedia's ( www.activemedia.com ) definitive Electronic Commerce study "Real Numbers Behind 'Net Profits", managers worldwide reveal that the Internet is generating significant profits across all industry sectors.
Web success, as revealed in this fresh data, shows Web site annual business revenues now regularly exceed $100k and, in many cases $1 million. On-line businesses have matured and are flourishing.
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WEBSITE REVENUES ARE EXPLODING
Back in 1995, many analysts scoffed when ActiveMedia predicted that 'Net sales in 1997 would be $13.3 billion. And ActiveMedia was wrong - their projections were too low. 1997 sales nearly doubled their then-outrageous prediction.
They reported that mean monthly sales were over $18,000 per site in their 1997 study, up from $4,200 in 1996 as web users became more accustomed to shopping online. $1 million per month was not uncommon among leading sites in 1997.
They say " The upward curve in sales generated by the Internet is only just beginning, as our new 1998 study will soon show. "
"Even in the US, where Internet use is most advanced, 'Net commerce is still in its infancy. ..." "Business-to-business profits are on the rise due to their on-line presence and this trend will continue as company strategists view their Web presence as their newest profit center and cost saver."
See More at http://www.activmedia.com/
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Web Lowers Sales & Marketing Costs - U.S. Dept. of Commerce Lower Sales and Marketing Costs
An individual sales person can support as many customer accounts as he can physically visit or contact by telephone. Therefore, as the number of accounts increases, so does the size of the sales force. Even direct marketing companies increase staffing as telephone order volume increases. By contrast, a Web business can add new customers with little or no additional cost. Because its sales function is housed in a computer server rather than physical store locations or sales people, its reach is bounded only by the capacity of the servers to respond to inquiries and orders.
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New Sales Opportunities
The Internet operates around the clock and around the world. As a result, businesses on the Web can reach new markets they could not reach effectively with an in-person sales force or advertising campaigns.
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THE FUTURE
Businesses that use the Internet to buy, sell, distribute and maintain products and services are realizing significant cost savings and increased sales opportunities. And, the benefits only increase as the network of businesses conducting electronic commerce grows.
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Short Notes - A collection of interesting Internet Ecommerce quotes
According to the Killen & Associates' report "Loans Over the Internet: New Opportunities and Threats" - 1/3 of home mortgages and nearly 1/2 of all auto loans will be conducted over the Internet by 2005.
"Hotel & Motel management" magazine came out with some interesting statistics this week. Hilton, they say, did about $6 million in on-line bookings last year. Hyatt said that in 1996 that they were thrilled with the $1 million they did on-line that year They expect 1998 to yield them $15 million. Web Site Profitability Improving. According Forty-six percent of Web sites surveyed by ActivMedia say the ventures are profitable, up from 30 percent a year ago. Of the sites that have been up for at least three years, 58 percent are in the black.
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