Our intention is to help keep you up-to-date with the trends in the online world in order to give merchants a competitive edge in this growing channel.

Please email km@e-tailing.com with any ideas or facts you would be interested in learning more about in future newsletters. Each month we will post the best ideas from your emails.

In an attempt to help merchants sort through all the Internet clutter, we have gathered some interesting stats about e-commerce, the online shopper, the online merchant and other marketing trends. We hope that you will find this information useful in making your online store the best it can be.

3Q03

	State Of The Industry
	Marketing
	Customer Service
	The Shopper
	Merchandising

State of the Industry

The Numbers

	U.S. B2C e-commerce, reported revenues of $76 billion in 2002, up 48% versus the prior year1
	Online retail sales are projected to reach $96 billion by year-end 2003 1
	Online retail will account for 4.5% of U.S. retail 2
	Multi-channel retailers lead online sales growth by 75% versus web based retailers at 25% 2

The Users

	7 million households are expected to join the ranks of online shopping in 2003 3
	Among the affluent, 40% spend two or more hours using the Internet (and that figure excludes e-mail. In contrast, in the two-plus-hour category, 33% watch TV, 15% listen to radio, 5% read newspapers, and only 2% read magazines 4
	71% of U.S. Internet users daily online activity is e-mail4

The Revenue= Privacy + Security

53% of consumers, who have not made online purchases, stated that a more secure payment option would persuade them to buy online content. Payment security was chosen over price or product related responses by more that a 2-1 margin 4

Source: 1) e-Marketer; May, 2003 2) 2003 Study Conducted by Forrester Research for Shop.org 3) Forrester Research, 2003 4) Biz Report; April, 2003

	Revenue loss due to the lack of privacy and security will jump from $5.5 billion in 2001 to $24.5 billion by 2006 4
	37% of Internet users would spend more online if not worried about privacy 4
	34% Internet users who do not shop online would start shopping on the web if not worried about privacy 4

Back To Top

Marketing

Ads are Annoying

	78% of U.S. Internet users find pop-up ads very annoying 1
	49% of U.S. Internet users find banner ads annoying 1

Building Brands

U.S. marketers were surveyed to learn their opinions regarding building a brand's image and discounting prices and found that while 49% think the two can co-exist, yet 33% can't name a brand accomplishing this balance2

Source: 1) Biz Report; April 2003 2) eMarketer; April 2003

It's All About Search

	According to a March 2003 report by U.S. Bancorp Piper Jaffray, nearly 250 million Internet searches are conducted each day in the U.S. 1
	The search market is expected to reach $7 billion by 2007 1
	64% of people in the U.S. who visit a search engine actually conduct a search on that site 2

Source: 1) CRM Daily; May 2003 2) Biz Report; March, 2003

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The Shopper

Look Who's Shopping... Children

65% of children in the US, ages 2 to 17, use the internet either at home, at school or some other location 2

US Children using Internet at Home

	Caucasian	Hispanic	Africa-American
Age 2-5	23%	23%	21%
6-12	55%	36%	31%
13-17	69%	59%	37%
All chilfren	49%	33%	29%

College Students

	72% of college students make general product purchases on the web 2
	Male college students are more likely to shop online than female students by a ratio of 77% to 69% 2

Adults

19 to 35 year olds represent 47% of online shopping population but will account for only 19% of new shoppers by 2006 2

Women

	Women make up 18.9 million of the 36.5 million web shoppers in the U.S. 2
	57% of online moms use the Internet to research products every week and 23% of online moms buy weekly 4
	52% of mothers online visit three or four online stores before deciding on a purchase 4

Mature Adults

Customers aged 50 and up will increase to about 30% of new Internet shoppers within five years 2

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Merchandising

Free Content!

	Consumer spending for online content in the U.S. totaled $1.3 billion in 2002, an 95% increase over 2001 1
	68% of Internet users dislike paying for streaming audio and video 2
	47.5% believe that the Internet should be free 2
	Only a mere 2.5% of Internet users pay for premium streaming content 2

Cash in on Coupons

	Consumers downloaded about 242 million coupons last year, 111% more than in 2001 2
	7.6 million coupons were redeemed in 2002 2
	70% of U.S. consumers agree that coupons save them money 2

Last Chance

Consumers who wait until the last minute are likely to use the Internet for the following 2