E-tailers Have Opportunity Of A Lifetime
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The more information I see, the more convinced I am that this holiday season will be crucial to the future of many e-tailers.
While we may still be in the early stages of the e-tail revolution -- Forrester Research projects online retail sales will go from $7.8 billion this year to $108 billion in 2003 - millions of dollars in future revenue can be earned by e-tailers who can successfully capture the loyalty and business of the growing number of people who are buying online.
A study released Tuesday by research firm Greenfield Online shows that about 75% of all people who use the Internet are now making purchases online, compared to slightly more than half of 'Net users just one year ago.
And Internet buyers aren't being stingy: 82% of them are filling their online shopping baskets with more than one item, the survey reveals.
Indeed, another recent survey, this one by Harris Interactive, shows that almost one-third of all Internet users plan to make at least one online purchase this season, quadruple last year's 8%.
Which is why e-tailers that are not prepared for the fall shopping rush are in danger of permanently losing thousands of customers to online competitors. The most obvious example is toysrus.com, the online spinoff of bricks-and-mortar retail giant Toys 'R' Us (TOY).
A fallout with its venture partners and the departure of the parent company's CEO, both in August, have left toysrus.com in a state of flux as the buying season heats up.
Meanwhile, eToys (ETYS), last year's big holiday winner among online toy sellers with $23 million in Q4 revenue, has since completed an IPO that raised $166 million and continues to improve upon an already excellent, consumer-friendly site. Some analysts project $100 million in sales for eToys in the fourth quarter.
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