Half of American Adults
Now Shop Online
Nearly half of the U.S. adult
population has made a purchase online, taking
e-commerce from a dot-com novelty to the mainstream,
according to a survey by Nielsen//NetRatings
and Harris
Interactive.
The eCommercePulse online survey
of 39,000 Web users found that 100.2 million U.S.
adults, or 48.2 percent of the U.S. adult population
age 18 and over, have purchased online. More than 81.2
percent of all adults with Web access have made a
purchase online since they started using the Internet.
"Online shopping is not
trivial when more than 80 percent of all Web surfers
and nearly one out of every two Americans are involved
- e-commerce has gone mainstream," said Sean
Kaldor, vice president of eCommerce at NetRatings.
More than $3.5 billion was spent
online in March 2001, a 35.6 percent increase from
$2.6 billion in April 2000. Two product categories
accounted for more than half of this growth: online
travel spiked 58.5 percent to more than $1 billion
dollars in March 2001, while clothing and apparel
jumped 122.3 percent to $368 million.
"Despite challenges in the
U.S. economy, online spending is holding strong, even
gaining four percentage points from February to March
2001," Kaldor said.
Amazon led the e-commerce market
in March, garnering 15.1 percent of all online buyers.
eBay followed closely with 14.5 percent of all online
purchasers, while BMG Entertainment's share was 4.3
percent. Barnes & Noble (3.8 percent) and Columbia
House (3.7 percent) rounded out the top five rankings.
"While Amazon commands much
of the attention in e-tailing, eBay attracts nearly as
many customers," Kaldor said. "In fact,
adding eBay's numbers to its subsidiary Half.com shows
it has more customers online than any other
merchant."
Despite strong showings by
online outlets such as Amazon and eBay, e-commerce is
fast becoming the domain of traditional retailers,
which are often best positioned to handle the
economics of online retailing and capture growing
consumer demand. The report "The Next Chapter in
Business-to-Consumer E-Commerce: Advantage
Incumbent" by the Boston Consulting Group (BCG),
found that bricks-and-mortar retailers have a golden
opportunity to use their inherent advantages to expand
their customer share dramatically.
"Online retailing is
entering a new phase in its evolution," says
Michael Silverstein, senior vice president and global
leader of BCG's Consumer practice. "What was once
an industry characterized by entrepreneurial dot-coms,
targeting the discretionary spending of the
Internet-savvy consumer, is fast becoming the domain
of traditional retailers, selling both necessities and
discretionary items to the broader population."
BCG's report also predicts the
long-term prospects for online retailing are strong,
as demand for goods and services online will continue
to grow as consumers become more accustomed to
multichannel shopping. Sales in the nine leading
online categories have the potential to grow from $34
billion in 2000 to $168 billion by 2005. Most of the
growth will take place in the leisure travel, grocery
and clothing categories.
Top E-Tailers
of March 2001
Ranked by Share of Purchasers |
| Rank |
Site |
Unique
Audience
(000) |
Purchaser
Share
(%) |
| 1. |
Amazon.com |
22,751 |
15.1 |
| 2. |
eBay* |
18,987 |
14.5 |
| 3. |
BMG.com |
4,762 |
4.3 |
| 4. |
Barnes & Noble |
5,948 |
3.8 |
| 5. |
ColumbiaHouse.com |
2,723 |
3.7 |
| 6. |
Half.com |
4,939 |
3.1 |
| 7. |
JCPenney.com |
3,339 |
3.0 |
| 8. |
Travelocity |
7,966 |
2.5 |
| 9. |
CDNow.com |
5,295 |
2.2 |
| 10. |
Southwest.com |
3,954 |
2.0 |
* Does not
include Half.com subsidiary
Source: Nielsen//NetRatings & Harris
Interactive |