ECommerce Is Back On The Fast Track
by: Craig Neidel
How much holiday shopping did you do online this year? If you are reading this, then chances are good that you made at least one purchase online. Over 54% of all Americans did it [1]. A much higher percentage (>80%) of Internet users did it.
Not only did you do it, you liked it! Less than 7% of online shoppers reported a bad experience with 88% reporting they were satisfied or very satisfied [2]. It is clear that online shopping has come of age with such a high level of participation and satisfaction. It appears that past issues of trust, security, and bad ecommerce websites are replaced with good ecommerce sites, higher trust, better security, and just plain better execution and service by online retailers. Quick, easy, and convenient shopping overcomes the concerns people have had in the past.
With a whopping 35% increase in online holiday sales this year, up to $18 billion [3], one analyst calls it ขa fantastic season for online retailers.ข [4] This is the third straight season of record growth for online shopping. This year, 2004, is expected to follow the trend. US online sales are expected to grow from $55 billion in 2003 to $73 billion in 2004 [5].
In searching for some bad news, it was hard to find. The worst news was that 3.6% of online shoppers had a very bad experience where either the merchandise was not delivered on time or was delivered in poor condition. This is a small fraction even compared to traditional retail sales.
Can the news and trends about ecommerce retailing really be that good? The answer seems to be a resounding YES! Some of the more popular online markets have double digit penetration now. That means some online retailers are reaping over 10% of total market share in their industries with a rising trend. In addition, more online retailers are showing profits. In 2002, about 50% of online retailers showed a profit from their online operations while 70% did in 2003 [5].
So, if you are one of those 70% of online retailers making profits in 2003, sit back, breathe a big sigh of relief, and relish the moment. There won’t be much time to relax and enjoy your successes. New business is right around the corner.
If you are a business and don’t yet have an online sales presense, then itกs never too early to get started. To get ready for the 2004 holiday season, itกs best to start now.
Create ecommerce plan – 4/15/04
Select ecommerce software & consultant (NetSource can help) – 5/15/04
Build the website – 7/15/04
Put the website into operation, start selling 8/15/04
Create online marketing plan – 8/15/04
Execute the marketing plan 9/15/04
Ready for holiday sales – 11/15/04
It can be done quicker than the schedule suggested above, but, to do it right requires thought, planning, and time.
References:
[1] Nashville Business Journal, 12/4/03
[2] ASD/AMD Marketwatch ENewsletter, 12/24/03
[3] eSpending Report, Goldman Sachs, Harris Interactive, Nielsen/Netratings, 1/5/04
[4] Abha Bhagat, Nielsen/NetRating, COMPUTERWORLD, 1/6/04
[5] ASD/AMD MarketWatch ENewsletter, 10/16/03
About The Author
Craig Neidel has worked for NetSource Communications Inc. for 6 years and has experience in web development, ecommerce solutions and web marketing. NetSource Communications creates custom ecommerce solutions and web applications. http://www.ntsource.com.
This article was posted on October 26, 2004
by Craig Neidel