E-Commerce Is Back On The Fast Track

How much holiday shopping did you do on-line this year? If you are reading this, then chances are good that you made at least one purchase on-line. 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 on-line shoppers reported a bad experience with 88% reporting they were satisfied or very satisfied [2]. It is clear that on-line 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 on-line retailers. Quick, easy, and convenient shopping overcomes the concerns people have had in the past.

With a whopping 35% increase in on-line holiday sales this year, up to $18 billion [3], one analyst calls it "a fantastic season for on-line retailers." [4] This is the third straight season of record growth for on-line shopping. This year, 2004, is expected to follow the trend. US on-line 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 on-line 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 on-line markets have double digit penetration now. That means some on-line retailers are reaping over 10% of total market share in their industries with a rising trend. In addition, more on-line retailers are showing profits. In 2002, about 50% of on-line retailers showed a profit from their on-line operations while 70% did in 2003 [5].

So, if you are one of those 70% of on-line 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 on-line sales presense, then it's never too early to get started. To get ready for the 2004 holiday season, it's 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 on-line 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 E-Newsletter, 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 E-Newsletter, 10/16/03

About The Author

Craig Neidel has worked for NetSource Communications Inc. for 6 years and has experience in web development, e-commerce solutions and web marketing. NetSource Communications creates custom e-commerce solutions and web applications. http://www.ntsource.com.

In The News:


pen paper and inkwell


cat break through


How Measuring Key Performance Indicators Can Improve E-Commerce Strategy - Part Three

The first article of this series discussed page views per... Read More

Home Sweet Home Page

"Your home page is the world's introduction to you and... Read More

Working With Drop Shippers

Drop Shippers, the manufacturers or distributors who are willing to... Read More

Two Pillars of a Successful Web Site

For a web site to get close to fulfilling its... Read More

Merchant Account Insider Secrets - Accept Credit Cards Online

The process of learning how to accept payments on the... Read More

A Beginners Guide To Setting Up A Successful Online Store

A beginner's guide to setting up a successful online store... Read More

eCommerce Software Solutions

All of the long, grueling nights and an unknown number... Read More

Chinas Online Shopping May Be Booming In The Next Few Years

Data from China Internet Network Information Center (CNNIC) shows that... Read More

Simple Steps to Start a Profitable Member Only, Subscription Web Site

Having a successful member only, paid membership site is one... Read More

Is ClickBanks Popularity Drawing To An End?

ClickBank is the Internet's most popular payment processor for online... Read More

Online Lead Generation: Can it Work for My Business?

Business-to-business service providers have a wide range of tactics they... Read More

Choosing an Ecommerce Shopping Cart

Choosing an online shopping cart is a big decision. Unlike... Read More

Intranet Portals ? Search and Taxonomies

Knowledge Management for beginnersKnowledge Management (KM) can be defined simply... Read More

How Measuring Key Performance Indicators Can Improve E-Commerce Strategy - Part One

The problem with most e-commerce marketing strategy today is that... Read More

10 Second Internet Person, sound familiar?

Some people do not understand the Internet idea of online... Read More

Tell Them Whats in The Can!

What does 'the can' mean? Well, its literal meaning relates... Read More

Succeed With Your Own Home Based Business

An internet business is by far the best way to... Read More

Developing a Winning e-Commerce Strategy

One bright spot on the economic horizons around the world... Read More

Dont give up on your business!

Summer must be when many work at home Mom start... Read More

The Essential Christmas Web-store Makeover

Ten great tips to turn online holiday shoppers into eager... Read More

Bringing the World to Your Door

According to Internet.com, by the year 2008 nearly 30% of... Read More

Saving Money On Your E-commerce Site

After building and transferring many e-commerce sites it still amazes... Read More

Is It Easy to Build An E-commerce Web Site?

--Online Commerce--E-Commerce website is all about selling products and services... Read More

Helping Your Visitors: a State of Mind

What does "helping your visitors" mean exactly?It means writing your... Read More

How to Receive Payments for Your Online Sales

Once you decide which products you are planning to sell... Read More

How To Find the Best Merchant Account For Your Business

What a great idea! Start accepting credit cards and watch... Read More

How To Turn Any Product You Sell In To Residual Income

The concept of this is for you to offer a... Read More

Getting Started in ECommerce ? Part Two

In Part One we talked a little bit about what... Read More

Set Yourself Apart From The Ordinary

I have written at length about the need to anticipate... Read More

Distinguishing Features of E-Commerce

E-commerce offers customers the chance to eliminate many stages in... Read More

6 Steps to Attracting Black Customers Online

by Jamila White, "The E-Commerce Diva"In the rush to keep... Read More

Top Ten Qualities to Look for in an Online Pharmacy

As you may have noted, there are thousands or even... Read More

7 Questions to Ask A Potential Internet Merchant Account Provider

Recently I went looking for an online merchant account, with... Read More