The final results from 1999 e-tailing are in, and no matter who you ask, the results are astounding: 39 million U.S. consumers shopped online in 1999, averaging 13 purchases each, according to an Ernst & Young LLP global online retailing report.
That’s double the 1998 figures. The value of those purchases skyrocketed as well, rising fourfold from a 1998 average of $280 per household to $1,205 last year.
These numbers will only rise as more households are connected to the Net. Currently, 34 percent of U.S. homes are online, with about 17 percent of those being online shoppers. As businesses get more creative with their offerings over the Web — drugs, groceries, large ticket items — they hope to attract a wider variety of buyers looking for products and services beyond traditional book and clothing vendors.
Even with all its convenience, e-tailing doesn’t appeal to everyone. Shipping costs remain one of the largest barriers to online shopping, the report found. Many consumers say they would rather drive to a local store than pay exorbitant shipping charges.
The most interesting finding, however, was that consumers are not captivated by banner ads or online shopping malls. In fact, E&Y’s report found only 12 percent of online shoppers frequent online malls, while a scant 19 percent click on banner ads.
Perhaps it’s time for business owners to rethink their marketing strategies for 2000 before their dollars are committed to the wrong techniques.
