E-tailers Have Opportunity Of A Lifetime

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.

This willingness of people who buy online to make multiple purchases
bodes extremely well for the holiday season. The consumer who last year
dipped his toe in the e-tail waters by ordering a book through
Amazon.com could be doing most of his holiday shopping through the
Internet this year.

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.


ALL NEW! internet.com’s HotWatch a monthly e-mail subscription for $99,
featuring Internet Stock Report’s top 10 noteworthy Internet stocks for the month. Each month you will receive in-depth analysis on the top 10 Internet stocks to watch with the information you need to assess the fast-paced nature of Internet stocks. Staying on top of market changes in the Internet Stock market is what counts. For $99 per year, you receive 12 timely issues sent to you by e-mail. Don’t wait, our next issue will be out before you know it with a whole new perspective on the market. Sign up today at: e-newsletters

Get the Free Newsletter!

Subscribe to our newsletter.

Subscribe to Daily Tech Insider for top news, trends & analysis

News Around the Web