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RealTime IT News

B2B Sites Still Shining

E-commerce revenue growth this year is projected to be strongest for B2B and Media/Portal companies that, overall, arrived online somewhat later than those that sell direct to consumers, says a new industry report.

In fact, year over year increases for B2B survey respondents who participated in ActivMedia Research's annual "Real Numbers Behind Net Profits" study expect revenue growth of about 250 percent in 2000, near 150 percent next year, and near 100 percent in 2002. For B2C sites, the percentage gains are 164, 118 and 88.

B2C Web sites are also anticipating continued strong growth, although theirs is slightly less dramatic, possibly because many of these businesses came online first and therefore are further along the e-commerce growth curve, the report says.

All Web sectors can anticipate some moderation in Web business growth for 2001 and 2002, but site operators still project a doubling and redoubling of annual sales for at least a few more years.

At some point, as the Web assumes a substantial role in the economy, growth rates will temper, but this may not happen for another five or six years, the study said.

"This year's update shows there are significant differences in Web strategies depending upon their business sector -- B2B, B2C, Media/Portal, ISP," said Harry Wolhandler, vice president of market research at ActivMedia.

"By understanding how other businesses operate in any given market, the successful e-marketer can develop strategies and policies to create new products and services that more effectively serve the needs of their specific cyber-marketplace. This is what leads to long term success."

The "Real Numbers" study will be available in late June and is priced at $2,995.