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"E-Commerce: How The Internet Will Affect You"
 
 
George Maytyjewicz
"E-Commerce: How The Internet Will Affect You"
GEORGE MATYJEWICZ
is Chief Marketing Officer and Managing Partner at GAP Enterprises, LLC a management and marketing Solutioning (tm) firm. He has over three decades of expertise in the business world, and has started and/or partnered many companies in his career.
 
He is a columnist with
Gifts & Decorative Accessories magazine  (since March, 1996) and moderator of E-Tailer's Digest, a discussion forum for retailers in 47 countries. 
 
For answers to your questions, e-mail George Matyjewicz
or call him at
(201) 866-8199
or write him at
GAP Enterprises, LLC
Harmon Cove Towers
Suite 1504
Secaucus, NJ 07094
Or visit their Web site at http://www.gapent.com/

 

 

Internet population. 

Nobody knows how many people are online. Respected research firms have estimated 83 million -- up from 62 million in May (Intelliquest) – and 106 million -- up from 78 million in May (Nielsen/Commerce Net). The largest reported is from NUA Surveys (an international consultancy based in Ireland), who recognizes that estimating online users is an inexact science. They perused the many surveys and give an ‘educated guess' as to how many are on line as of September, 1999. 

What's interesting is the growth from May, 1999 when I spoke to Gift Retailers at the National Stationery Show in the Javits Center in NYC to now. 
 
  Sept. May Growth* % By Day**
USA and Canada  112.40 90.63 21.77 24.0% 178,443
Europe 47.15 40.09 7.06  17.6%  57,869 
Asia/Pacific 33.61  26.97  6.64  24.6%  54,426 
Latin America 5.29        
Africa  1.72  1.14  0.58  50.9% 4,754
Middle East 0.88 0.88       
WORLDWIDE  201.50 165.0  36.05 21.8% 295,453

* Growth in millions ** Actual count by day http://www.nua.ie/surveys/how_many_online/
So, your universe is between 83 million and 201 million. 

Shopper profile.

There are many Net-based surveys where they try to determine the profile of Net surfers or shoppers. Every six months (April and October), since April 1994, the Graphics, Visualization, & Usability (GVU) Center at Georgia Institute of Technology in Atlanta does a very thorough survey of the Net population which has become the de-facto standard. 

In their latest survey they profiled the typical user to be:

• 37 Years old (with most between 21-25 and 51-55)
• Average income $69,000 
• 88.8% have some college
• 47.6% married
• 87.2% Caucasian
• 87.0% have been on Net 1 year or more
• 88.7% purchased on Net in last 6 months
• 87.5% Visited store sites
• 84.6% Search to buy at least once month

http://www.gvu.gatech.edu/user_surveys/

Why Shop The Net?

Why are these people shopping on the Net? And why don't they shop at my store?
You will be surprised that many (51% according to Find/SVP study) who search the Net do look for a local store to purchase the merchandise. So, to paraphrase the New York State Lottery statement "You have to be in it to win it." According to GVU, the reason folks shop on the Net (in order of importance) are:

• 21.0% Convenience
• 18.8% Save time
• 18.7% Vendor information
• 16.0% No pressure
• 8.4% Product reviews
• 8.3% Other or N/A
• 4.6% Customer opinions
• 4.2% Personalized information

Many people are asking others on discussion lists and chat rooms about their experience with a product or service or a company. And smart executives will listen – the Net is really a small community! Disgruntled customers can put you out of business – even if you are not online!

* http://www.nua.ie/surveys/index.cgi?service=view_survey&survey_number=386&rel=no 

What information are shoppers looking for?

The Net is an excellent way to learn all about your company, your products and services. So, it behooves you to provide as much information as possible to help shoppers make a decision to buy. And it must be easy for them to purchase. Shoppers are looking for:

• 30.7% Detailed information on products or services and your company
• 26.6% Compare price 
• 25.5% Availability of merchandise
• 8.9% Store location (yes they do look for a store near them)
• 8.3% Other 
As a supplier, just like a retailer, you need to tout your business and products and make it easy for your customers to purchase.

What sells on the Net?

Three or four years ago I would have said anything under $100. Today the answer is anything! Folks are purchasing high-ticket items like real estate, automobiles (17% of all autos purchased are purchased online) and jewelry, as well as low- to medium-priced goods and services. The most popular items sold on the Net are:

Earlier this year: 

PC hardware & software
Travel & entertainment
Books
Music
Gifts
Toys
Flowers & greetings
Clothing (biggest increase)
Groceries & pharmacy

September, 1999
• Books, 26 percent up from 10 percent in 1998
• CDs, 24 percent up from 10 percent last year
• Computer Software, 21 percent, up from 11 percent
• Computer Hardware, 13 percent, up from 7 percent in the last 12 months
• Airline tickets, 12 percent up from 5 percent last year
 



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