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Volume 1, Issue 1
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In This Issue:
News About the Latest Nielsen Study on Electronic Commerce.
The Numbers Keep Growing!
Would You Believe:
- The Internet Population continues to grow at a phenomenal rate - one new user every 1.8 seconds.
- Business domains now surpass all others (edu, gov, mil, org, etc.)
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Over 5,250,000 Business sites
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1,650 new business sites/day
Source: CommerceNet http://www.commerce.net/ - 85% of Internet users use it daily
Source Graphic, Visualization, & Usability Center's (GVU) 8th WWW User Survey. Oct 1997 http://www.gvu.gatech.edu/user_survey
- Convenience Counts -
The most cited reason for using the web for personal shopping was convenience (65%) (GVU)
- 55% of the online population is college educated
- 10 million of the estimated 53 million users earn $100K + per year. 20 million earn $50K-$74K.
- Cisco said it made $10 million per day in revenue from its Web site in the quarter ending Jan. 31, 1998 - up from $9 million per day in the previous quarter. They expect $5 Billion in sales for the Fiscal year ending July 1998.
Electronic Commerce is on the Rise According to a CommerceNet /Nielsen Media Research Survey
New York, NY, December 11, 1997 - There are now more than 58 million adults using the Internet in the U.S. and Canada. And more than half of these -- 30 million persons -- were on-line during the last 24 hours.
Worldwide Web users are now measured at 48 million people. Even more important to electronic commerce, the number of people who have actually made purchases on the Worldwide Web has reached almost 10 million.
These are among the key figures released by CommerceNet and Nielsen Media Research. The Fall 1997 CommerceNet/ Nielsen Media Research Internet Demographics Survey is the fourth in a groundbreaking series that has tracked Internet use by people over 16 years of age in North America since 1995.
"We are gratified to see growth in the range of 50% for Web Shopping," said Stacey Bressler, CommerceNet's vice president of marketing. "We expect that as more people use the Web for holiday shopping, the number will rise even more steeply."
"The recent rise in Internet shopping directly rewards the industry's technical and marketing initiatives in the past year to build consumer confidence, " said Jerome Samson, Nielsen Media Research's director of technology and business strategy. "However, we still have more work to do. Of the 48 million Web users, 54%, were not likely to make on-line purchases in the future."
Another inhibiting factor was lack of knowledge. Few of the people surveyed had ever heard about the security offered by SSL (14%) and even fewer (8%) had heard of TRUSTe, the on-line service which licenses trustmarks to sites adhering to informed consent standards.
E-mail is Important
For the first time, the Fall 1997 CommerceNet/ Nielsen Media Research survey measured E-mail usage among both Internet and non-Internet users. There are currently 59 million E-mail users age 16 and older in North America - 26% of the total population - and four out of five of them are Internet users.
"E-mail is arguably the most powerful tool in electronic commerce," said Bressler. "Most transactions are still done person-to-person and E-mail is the on-line channel for this type of communication. If ET were to 'call' home today, he might be doing it via E-mail."
Internet users are twice as likely to have used E-mail in the past 24 hours as non-Internet users. In addition, electronic mailing lists are used by one out of five E-mail users, and fewer than half of the E-mail users have reported receiving at least one unsolicited E-mail ad.
Industry Statistics
Electronic Commerce
According to Forrester Research 1997 Online transactions totaled approximately $9 Billion! Cisco Systems leads with US $3.2 Billion in sales for 1997 and is followed by Dell Computer with US $1 Billion in sales.
Online Sales
Business to Business:
According to these same surveys, 1997 business to business transactions totaled US $7.5 Billion. Piper Jaffray estimates that by the year 2001 Internet based business tobusiness transactions will total US $201.6 billion.
Forrester Research estimates that by 2002 online business to business
transactions will total US $327 billion.
Online Investments
Online stock trading:
Investment banking firm Piper Jaffray predicts the online industry will mushroom eight-fold by 2001, and account for 60 percent of the discount brokerage industry within four years.
http://www.pjc.com
Entertainment
Ticket Sales:
Forrester Research predicts that sales of entertainment and travel tickets
bought online will top US $10 billion by 2001.
Books & Music:
Amazon.com sold US $27.9 million in books during the second quarter of 1997, up 74 percent from the first quarter.
Jupiter Communications predicts online music sales will total US $1.6 billion by 2002.
Electronics and Computers
Computer Hardware:
Dell Computer Corporation reports sales topping US $3 million worth of computer products sold over the Internet per day as of October 1997.
http://www.dell.com
Automotive
Online Shopping:
According to J.D. Powers & Assoc., about 1.5 million cars have been sold with the help of online shopping services, such as Auto-by-Tel and MicrosoftCarPoint.______________________________________________________
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