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Research shows e-commerce still growing

Friday 21 September 2001 04:31
The number of Americans buying online will double from 64.1 million in 2000 to 130 million by 2005 despite the slowing economy, according to a report by research firm eMarketer.

The report, which aggregates and analyses data from more than 100 research organisations, has varying e-commerce estimates for the year 2001 in the US, with figures ranging from $37.1bn (£25.5bn) by Direct Marketing Association to $117bn by Keenan Vision, according to eMarketer.

eMarketer's own estimate is that US business-to-consumer revenues, which totalled $38.3bn in 2000, will quadruple to $156bn by 2005.

The Internet, according to eMarketer, is being accepted and is evolving as a key distribution channel for traditional merchants. Lines are blurring between traditional business operations and Internet pure-plays, the company said.

Other highlights of eMarketer's report include:

  • Visa International places online credit card fraud rates at between 25 cents to 28 cents per every $100 charged, significantly higher than the 7 cents for all transactions.


  • Jupiter Media Metrix found that consumers are "overwhelmingly" fearful about theft of credit card data online. Nearly 81% of US consumers are afraid their number will be intercepted online.


  • The number of US Internet users, noted as 116.5 million in 2000, will jump to 184.1 million by 2005.


  • Alexa Research reports that 33 sites in the top 50 e-commerce sites have multi-channel operations, while only 17 are pure dotcoms.


  • Giga Information Group reports that click-and-mortar companies will dominate Internet sales again in 2001, as they did in 2000.