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.

3Q04
State Of The Industry
Marketing
Search
Customer Service
The Shopper

Archived e-facts
1Q04
4Q03
1Q03

State of the Industry


Online population passes 200 million for the first time1

According to the Census Bureau, online sales reached $15.7 billion in the 2nd quarter, up 23.1% from the 2nd quarter a year ago

Total retail sales for the 2nd quarter of 2004 were estimated at $919 billion, an increase of 7.8% form the same period a year ago 2

E-commerce sales in the 2nd quarter accounted for 1.7% of total sales2

Online sales will grow by 27% to $144.6 billion in 2004 and will account for 6.6% of US retail 3

Total retail online spending in general merchandise will reach $151.3 billion by 2010, up from $75.7 billion in 2004 4

Source: 1)comScore; 2003 2 )U.S. Census Bureau; August 2004 3 )Forrester Research; May 2004 4) Forrester Research




Marketing
Do not Call Me; Do not Advertise To Me
  • Sixty million US households have signed up for the DO NOT Call Registry 1
  • 54% of online households have spam blockers 1
  • 20% have ad blockers 1
  • Personal video recorder households skip 59% of ads 1


Source: 1) Forrester Research; 2004


How do you Define Spam?
Results from DoubleClick's survey, conducted with Beyond Interactive and the NFO/Net Source consumer panel:
"An e-mail from a company I've done business with but comes too often"


"An e-mail that may have been permission based but comes too frequently"


"Any e-mail that tries to sell me a product or service"


Online Intrusions Intrusive?
  • 40% of Internet users block pop-up ads
  • 33% block banner advertising
  • Percentage of click throughs on banner ads plummeted from 31% in January 2000 to 9% in January 2004


E-mail Purchasing Drivers: What Compels you to Take Action?



Today's Affiliates
A large portion of affiliate marketing companies represent 40 or more sites 1

Only 11% of those surveyed knew their income or would reveal it take in more than $5,000 a month in gross revenue 1



Do you Phish?

Phishing is a form of identity theft that acquires personal information by tricking Internet users into divulging the data through e-mails and Web sites forged to look like those of legitimate companies
According to the Radicati Group, 68% of phishing attacks target the financial industry, and 12% E-commerce

The group also predicts the number of phishing attacks per month will more than double by 2008 to reach an average of 110 per month, up from 51 per month in 2004

According to Gartner, phishing has accounted for $2.4 billion in fraud



Are Virtual Catalogs a Gimmick?
According to the Forrester Research Inc., 73% of online consumers polled say they have flipped through them at retailerıs web sites, 30% who use the tool say they find them valuable.

65% of online catalog shoppers had purchased online in the past 3 months vs. 42% of those who don't use the virtual catalogs.

25% of web users say they use the online editions to easily find products they first saw in the paper catalog

35% flip through online catalogs even if they have never seen the printed version

Source: Forrester Research Inc.; 2004




Search


The proportion of online buyers who start their shopping trips at aggregator sites (search engines, comparison sites, e-shopping malls and auction sites) has increased from 46% to 54% in 15 months. 1

68% of respondents feel search engines are a fair and unbiased source of information 2

87% said they find the information they are looking for "most of the time" or "always" when they use a search engine 2

Almost 85% of US Internet users have said they seek information through search engines 2



Don't Take My Search Away!

Source: Forrester Research Inc.; 2004

How Many Words Does it Take?

How Far Will You Go?




Category


Does the Single -Channel Retailer Exist?
A mere 6% of store retailers operate only one channel
44.7 % have three channels; store, catalog & Internet



Travel
Online travel will comprise 33% of all travel bookings by 2006 1

Online travel revenue will increase by 34% to $52.8 billion on 2004, still a far cry from the $120 billion worth of online travel revenues that come in through the phones 1





Source:1) PhoCusWright Inc.; July 2004


Home Furnishings
According to NOP Worldıs Roper reports, Home Furnishings is the fastest growing category of merchandise selling online

Consumers are most likely to buy household good, such as linens, and home furnishings, such as lamps. 14% of consumers bought household goods online in the past year, up from 6% a year earlier and 10% bought home furnishings vs. 3% a year ago

House goods buyers are more likely than the average online shopper to have purchased travel services in the past year: 47% vs. 32%



Movies
A Feedback Research survey indicates that of the respondents who go to the movies, 24% said that they have bought flick tickets online

Of those 71% made a purchase between 1 and 3 times in the past 6 months

Survey respondents cited "watching trailers" as the most popular reason for visiting official movie sites.


Customer Service


According to a recent Connell Associates study, most customers prefer using the telephone or a live chat to have their questions answered by businesses

Only 14.1% of online consumers use chat to reach customer service. By contrast, 54.3% reported using e-mail 2

45% felt most companies provide bad customer service and a mere 13% reported having a satisfactory experience 1

89% of customers surveyed felt that good customer service should not be difficult for a company to provide 1

93% feel the level of customer service they receive directly impacts how they feel about the company they are contacting 1



Can You Get Personal?
The choiceSteam Personalization Survey found that 80% of consumers were interested in receiving personalized content. Their enthusiasm varied by age, however

87% of 18 to 24 year-olds expressed some type of interest in personalized content

35-49 year-olds were less interested, with only 76% wanting personalization

63% of 18 to 34 year-olds said they would be willing to give data such as age and gender in exchange for an element of personalization

49% of consumers 35 and older indicated they too would be willing to provide demographic data

Over 50% of the respondents said they would be willing to spend 2 minutes and 21% said they would spend up to 6 minutes answering questions about themselves in order to receive the personalized content they want to see

The Shopper


Who's Online?
Nearly 75% or 204.3 Million Americans have access to the Internet from home 1

18-34 year-olds account for 38% of the total time spent online, while they are only 24% of the total U.S. population 2

24% of this group accessed the web from a friends/ relative's home, 16% via a cell phone, and 8% from a library 2

Multi-Channel shoppers represent 65% of all consumers vs. 56% a year earlier 3

DoubleClick reports that 36% of all shoppers shopped in retail stores and on the Internet, and 24% shopped in all three channels (Internet, stores & catalogs)

Source: 1) Nielsen//NetRatings; 2004 2) Online Publishers Association; 2004 3) DoubleClick; 2004


What are They Doing Online...
According to Pew Internet & American Life Project, 92% of people feel the Internet is a good place to get everyday information

85% say the Internet is a good way to communicate or interact with others



Hispanics' Online...
There will be over 13 million US Hispanic Internet users by the end of the year 1

There are currently 12.6 million Hispanics online today, up 43% in the last 6 months 2

Only 5% are 55 and over, as compared to 21% of the general online population 2

Fewer Hispanics buy apparel, 40% Vs 50%, and computer equipment, 38% Vs 44%, online than the general Internet population1

The do buy more groceries, 13% Vs 5%, and consumer electronics, 40% Vs 30%, than the general internet population1

Source: 1) eMarketer; 2004 2)Nielsen//NetRatings; 2004

Teens
The number of online teens will grow from 18 million to 22 million between 2004 and 2008

17% of teens are "teen influencers", a group that is highly active online

Teen influencer are older and wealthier than the average teen, spend 8 hours a week on the net (more than the average) and are 53% female

Source: Jupiter; 2004


Moms
95% of moms surveyed say the Internet is a time saver

80% are online to do chores or other activities, helping them save time every week

58% of today's moms are in the workforce, compared to 25% during the 1950's

95% of respondents use e-mail to keep in touch with family/friends, 48% exchange photos and 10% use web cams


İ 2003. the e-tailing group, inc.