It is hard to keep up with the growth of the Internet. It is by far the fastest adopted media in history.  Over 100,000 new domains are being added every month (e.g. intrinity.com) and the list of incredible statistics goes on.  Select an article below for excerpts from some recent headlines relating to Internet growth.  Web site addresses containing the full stories have been included where available.

** Note that the items are sequenced by date.

 

Shutdowns Fall Sharply
Webmergers Inc. (08/02/01)

The number of Internet shutdowns fell in July to their lowest level since last September. Global company closures and bankruptcies numbered 32 in the month, compared with 53 at the same point at the end of June. June's toll has since risen to 58 as news of additional shutdowns has, as usual, surfaced after the month's close. The somewhat dramatic decline in shutdowns in July is consistent with our observation last month that Internet rationalization has reached a plateau and may have run most of its course. More specifically, our data suggests that the tail-end of the business-to-consumer (B2C) shakeout is overlapping with the early to middle stages of the shakeout in such business-to-business (B2B) sectors as infrastructure and professional services. That overlap caused a substantial "bubble" in shutdowns early this year; as the B2C casualty rate slows, we should see a gradual decline in total shutdowns. The grim reaper's move away from consumer-oriented properties is particularly pronounced for B2C e-tailers. In the first seven months of this year, only 26 percent of all shutdowns involved consumer-oriented e-commerce companies as compared with last year when they tallied 43 percent of all shutdowns.

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Global B2C: Slow and Steady Wins the Race
eMarketer Inc. (07/27/01)

According to eMarketer's newly released eGlobal Report, the worldwide business-to-consumer (B2C) market should grow to $428 billion by 2004. eMarketer finds that for the next few years, however, the global B2C market should remain small with $101.1 billion in 2001 and $167.2 billion by 2002. eMarketer reports that due to the failure of a number of dot-coms, B2C revenue still only accounts for a small percentage of overall retail. eMarketer presents comparative B2C estimates from a selection of firms and finds that, interestingly, the numbers do not widely differ even though there are a number of factors that can greatly affect the B2C market.

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Solid Consumer Confidence in the Net
NUA Internet Surveys (06/28/01)

The first results from the Yahoo/AC Nielsen Internet Confidence Index show that 42 percent of US Internet users intend to buy online during the next three months. Each will spend an average of USD184 online during this time and the overall spend will reach USD9.9 billion. Sixty-three percent of those polled said they would buy from a retail site once a month or more often, while 68 percent of those who had previously bought online said they would do so again over the next quarter.

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Global E-commerce Study Reveals 50 Per Cent Increase In Online Shoppers In Past 12 Months
Taylor Nelson Sofres (06/26/01)

The proportion of internet users in the world who have shopped online has increased by 50 per cent over the past year, according to the findings of a new 36-country study published by Taylor Nelson Sofres Interactive (TNSi) today. The research - based on more than 42,000 interviews across Europe, North and South America and Asia-Pacific - also shows that the proportion of internet users who have shopped offline (again, in the past month) as a result of information found online is 15 percent. This suggests that a total of around 27 per cent of users worldwide are now shopping directly or indirectly via the internet.

The findings also show that whilst the highest proportion of internet users worldwide are under 30 years of age, those who are most likely to make an online purchase are between 30 and 40 years old, with just seven per cent of the under-20s shopping online. This may be explained by the more limited availability of credit facilities to the younger age group, but still demonstrates a clear opportunity for online marketers to use youth-orientated websites to encourage more direct sales (ie offline shopping) amongst younger users.\

Other key findings include:

Arno Hummerston, Director, TNSi, says: "These findings show that online shopping is continuing to undergo significant growth worldwide, despite the much publicised problems of the industry. In part, this is because of increasing confidence in online properties - especially in the more established e-markets. However, it is also the result of a growing number of users in emerging markets shopping online for the first time. What is encouraging is that the range of products and services purchased via the internet is increasing, and that there is a more obvious success in the integration of offline and online activities. It appears that the e-commerce world is realising that it exists within an offline world and not in an independent environment.

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Reports Of The Death Of Online Retail Are Greatly Exaggerated
Jupiter Media Metrix (05/22/01)

Online retail sales continue to grow, despite widespread skepticism over the sector's health. Although the pace has eased, US online retail sales will still reach $104 billion in 2005 and $130 billion by 2006, up from $34 billion in 2001. This compares with the Jupiter Media Metrix original forecast of $36 billion in 2001 and $118 billion in 2005.

"The doom and gloom over the state of online retailing has been greatly exaggerated," said Heather Dougherty, Jupiter analyst, from the Jupiter Media Metrix Retailing Forum. "While short-term market factors have slowed the pace and shifted the playing field toward multichannel retailers, the long-term outlook is still positive. Retailers and their constituents must not lose sight of the fact that the online purchasing population continues to grow and their comfort with the channel continues to increase."

Additional Online-Retail Data and Analysis:

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Online Retail Market in North America to Reach $65 Billion in 2001
Boston Consulting Group (05/02/01)

Online retailing is emerging from the shakeout of 2000 with stronger consumer demand and improved profitability. According to The State of Online Retailing 4.0, a new Shop.org study conducted by The Boston Consulting Group, the North American online retail market is expected to grow 45 percent in 2001, reaching $65 billion. The State of Online Retailing 4.0 is the latest in a series of annual reports and quarterly surveys conducted by The Boston Consulting Group for Shop.org. This year's market size estimate differs from previous ones as it no longer includes financial brokerage. Using this methodology, business-to-consumer online sales in 2000 grew 66 percent to reach almost $45 billion.

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US B2C Spending up in March
NUA Internet Surveys (04/26/01)

The latest round of the Online Retail Index from Forrester and Greenfield Online shows that online consumer spending rose by USD100 million in March to USD3.5 billion for the month. The number of households shopping online stayed steady in March at 13.5 million while the amount spent online per consumer rose slightly to USD263, from the February figure of USD248.

Some small-ticket categories showed healthy growth in March, including software, books, videos, and office supplies, while revenues dropped in others, including music, apparel, jewelry, flowers, and health and beauty products.

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Global B2C Revenues To Grow Six-Fold By 2005
NUA Internet Surveys (04/25/01)

Despite the current woes in the Internet economy, IDC predicts that online consumer spending will increase almost six-fold by 2005. A new study from IDC says global B2C revenues will grow from USD118 billion this year to USD707 billion, while the number of home Internet shoppers will increase from 119 million this year to 317 million in 2005. The number of Internet users worldwide is predicted to grow to 977 million by 2005, up from 400 million at the end of last year.

The growth in Internet use and ecommerce is also expected to drive ebusiness revenues upwards. IDC says that ebusiness revenue will grow to 7 percent of companies' global revenues this year, up from 4 percent last year. There is a need for businesses to integrate their Web systems into their existing order-processing systems, however. While 75 percent of businesses acknowledge that this is important, fewer than one quarter had actually carried out this integration.

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Canadians Boost Online Spending
CNews (03/13/01)

Canadians doubled their online spending last year and will spend even more on the Web this year, a new survey shows. Despite doom and gloom around the technology sector, online sales doubled last year to $4.3 billion and the trend looks good for Web retailers, says the study by Ipsos-Reid. "Contrary to what the critics are speculating, the results show that b2c e-commerce in Canada is not dead" said Steve Mossop, senior vice-president of Ipsos-Reid. "With the prevalence of doom and gloom reports in this sector over the past six months or so, the news is refreshingly positive. The meltdown in this sector is more a function of the closing of a bunch of Web sites that nobody was visiting-when in fact, more people continue to access the Internet online, more people are purchasing online, and the ones that are buying plan to spend more money next year.

"The study shows up to two million Canadians are poised to shop online for the first time this year, with banking, software, books and music heading their shopping lists. Last year, three trends emerged in Canada: a growing critical mass of online buyers, Canadians purchased more online due to the increased availability and selection among Canadian e-retailers, and increased spending among experienced users. Almost one-quarter of Canadian adults have made an online purchase, over five million people. Those who bought online last year expect that their spending will increase in a significant way. Nearly one-half of online shoppers indicate their online spending next year will increase a little (40%), or increase a lot (5%). This is only slightly less optimistic than the 64% who indicated the same last year.

The proportion of online shoppers buying from Canadian sites is increasing. Canadian e-tailers are enjoying an increasing slice of the e-commerce pie, as 63 per cent of online purchasers indicated that their most recent purchase was at a Canadian-based site. Banking services, downloadable computer software, books, and music remain at the top the list of categories purchased this year. Computer software, tickets to events, clothing hotel and air travel, and consumer electronics round out the top 10.

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Online Shopping Clicks Despite Slowing Economy
Internet World (02/16/01)

Americans bought more online than ever before in the fall of 2000 despite signs of an economic downturn and daily reports of dot-com demises that spoiled Wall Street's love affair with the Net. Federal figures released Friday show that total online sales reached $25.8 billion in 2000, which is 0.8 percent of total annual U.S. retail sales. It is the first time the government has reported annual sales for e-commerce. The Commerce Department said online shopping from October to December increased 35.9 percent over the previous quarter even as the economy showed signs of slowing. The government report said Web sites generated $8.7 billion in fourth-quarter sales, an increase of 67.1 percent from the previous year. Third-quarter retail e-commerce sales were $6.4 billion. E-commerce sales for the fourth quarter accounted for a full 1 percent of total U.S. retail sales compared with 0.6 percent of total sales during the same quarter in 1999.

The report accounts for online purchases such as books, clothes, and toys. But it doesn't measure sales of online travel services, financial brokers and dealers, and ticket sales agencies. The research was conducted to ensure that the 12,000 companies in the sample were representative of the universe of e-commerce retailers, according to the government. Businesses are asked to report e-commerce sales separately from regular retail sales each month. Before this year, the Commerce Department has not tracked e-commerce statistics, leaving it to firms like Jupiter and Forrester to make their best guesses about online sales. Last March, the Census Bureau for the first time released figures regarding online sales. The numbers are used as a benchmark to guide government in deploying resources.

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Despite Failing Dot-Coms, Consumers Continue To Shop Online
Netprofit (02/08/01)

According to a new report from Massachusetts-based Forrester Research Inc. shoppers won't abandon online retail because e-commerce gives consumers power -- the ability to perform or act effectively. The Report, "Why eCommerce Won't Die," was based on a mail survey of 10,536 online households in the U.S. and Canada, and a benchmark study of 80,887 U.S. and Canadian households. It concluded that the power offered by the Web consists of three main elements: convenience, confidence, and control.

"Rumors surrounding the demise of e-commerce have been greatly exaggerated -- in fact, they are dead wrong," says Forrester analyst Christopher M. Kelley. "While the number of tech-related pink slips increases, consumers continue to flock to the Net without regard for the pain faced by online retailers. Ninety-eight percent of Web buyers say they will continue to shop online, and 65% won't alter their spending at all."

The Global Face of E-Tailing
Ernst & Young (02/07/01)

Online retailing ("e-tailing") underwent a major transformation in 2000, as many pure-play e-tailers went down in defeat, and the investment community turned cautious or indifferent. It was a year when numerous department stores, broad-lines, and consumer products companies brought their brands online. At the same time, many click-and-bricks companies expanded their merchandise assortments online to cater to customers spending more on a wider range of products. Clearly, companies recognized that online retailing is no longer an option but a business requirement. As shown by Ernst & Young's new study, "Global Online Retailing," sponsored by Cap Gemini Ernst & Young, we are in only the "second inning" of this game; no doubt, the industry will continue to transform itself in the years ahead.

Overall, the study found consumers continuing to be very satisfied with e-tailing. They continue to buy online in increasing numbers and spend more on a greater range of merchandise categories, while being concerned with shipping costs and generally price-sensitive. Traditional brick-and-mortar companies became optimistic about the future of multi-channel retailing, clearly recognizing that online retailing is now a requirement and are moving aggressively into the online arena.

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Online Retailing Continues To Grow, Despite Problems
Ernst & Young (01/17/01)

A new global online retailing report from Ernst & Young confirms that the global online retailing market will continue to grow, despite the dotcom troubles in 2000. The report also reveals interesting consumer habits and complaints.

The key findings from the 'Global Online Retailing' report show that countries outside the US, particularly English-speaking countries, are now buying more goods online. The majority of online purchasers worldwide are men-they represent two-thirds of the total online shopping number outside the US.

Books, CDs, and computer equipment are still the premier selling items online. Almost 52 percent of US and 54 percent of global consumers purchased books over the Web during 2000. Book sales were followed by CD sales in popularity, which were bought by 48 percent of consumers.

Consumers complained most about the high shipping costs for online purchases, according to Ernst & Young. Almost 42 percent of respondents said it was the primary reason they deserted their shopping cart.

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E-Commerce To Grow 57 Percent in 2001
E-Commerce Times (01/08/01)

Despite a slowdown in growth during 2001, particularly for the first six months, e-commerce sales will increase 57 percent this year compared to 2000, according to an upcoming report by research firm eMarketer. In previewing the report Saturday, eMarketer co-founder Geoffrey Ramsey told the E-Commerce Times that Internet sales are now more dependent on the "overall state of the economy" than any industry-specific factors. "If overall spending decreases more than what analysts are predicting, if there's a serious downturn, we'd have to adjust those numbers," Ramsey said.

For now, Ramsey and eMarketer have concluded that online business will total US$65.9 billion in 2001, compared to $42.0 billion in the just completed year. "The fact is that the Internet is not going away, and we're going to continue to see a migration of dollars," Ramsey said.

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Online Holiday Spending Doubles In 2000
Goldman Sachs & PC Data Online (12/29/00)

Online consumers more than doubled their holiday spending this year, according to new figures from Goldman Sachs and PC Data Online. From the beginning of November through December 17, holiday shoppers spent USD8.7 billion online, up 108 percent from last year's figure of USD4.2 billion. In the week ending December 17, shoppers made online purchases totalling USD1.6 billion. Over the same period in 1999, the weekly total was USD878 million.

The holiday spending spree began earlier this year, as shoppers tried to avoid the delivery problems that blighted last year's holiday season.

Overall, consumers seemed to be satisfied with the service provided by etailers this year. Of those polled by Goldman Sachs and PC Data Online, 40 percent said their online shopping experience was better this year than in 1999. Over half (54 percent) said it was the same, and 5 percent found it to be worse than last year.

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Internet Purchases More Successful In 2000
Andersen Consulting (12/18/00)

The survey was conducted as part of Andersen Consulting's second annual 'e-fulfillment study.' Although 8 percent of attempted online transactions failed this year, the figure is still a remarkable improvement on last year's online Christmas holiday purchases-25 percent of those were unsuccessful.

An inability to take orders online, crashing websites, and sites that were still being constructed, were just some of the reasons why online purchases failed in 2000.

The survey found that both traditional and online retailers were 95 percent reliable in having the stock that they promised customers, but traditional retailers still take longer to close an order-the gap has decreased from three minutes in 1999 to a minute and a half this year.

From a customer's perspective, the service is also improving. They now spend 25 percent less time shopping (down from 12 minutes last year to nine minutes in 2000). Nearly 23 percent more sites send an email confirmation to customers, and 24 percent more sites provide a shipping confirmation.

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The Net's Alive and Kicking, Says Study
The Standard (11/29/00)

The high-profile deaths of big-name dot-com retailers don't foreshadow the end of the Internet Economy. In fact, a new study suggests e-commerce will become the industrial revolution of the 21st century.

The Internet Economy continues to grow robustly, with both new and established companies reaping profits online, according to a new study from the Center for Research in Electronic Commerce. E-business still has huge untapped potential, said Anitesh Barua, associate professor of information systems at the center. He believes that its effect on the industrial economy will be as significant as the shift from the agricultural economy.

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Happy Holidays For E-Commerce
ZDNET News (11/27/00)

Consumers boosted their online purchases at a rapid pace in the third quarter, the government said Monday in a report showing a healthy e-retail sector heading into the holiday shopping season. Online purchases of goods including books, clothes, and toys jumped 15.3 percent from the second quarter to $6.373 billion in the third quarter, even as total retail sales fell 0.4 percent, the U.S. Commerce Department said.

"American consumers appear to be becoming more comfortable with shopping online,'' Commerce Undersecretary Robert Shapiro said at a news conference. Shapiro said the e-retail sectors seeing the biggest increase in sales were auto dealers, bookstores, and mail-order firms selling online. Despite the large quarterly gain, online sales accounted for less than 1 percent of total retail sales.

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Canadian E-Commerce Gaining Ground
E-Commerce Times (11/09/00)

While Canadian e-commerce still has a long road to travel before catching up with the U.S., a study released Wednesday by the Canadian e-Business Opportunities Roundtable shows that the divide is steadily closing. "We're pleased to see the gap narrowing as Canadian businesses increasingly embrace the digital tools that will keep them competitive," said John Wetmore, chair of the roundtable's e-Business Acceleration Team and president of IBM Canada.

Through 2004, the Canadian e-business sector will grow at an annual rate of 75.5 percent, with total Canadian e-business spending reaching $100 billion (US$) by 2004, the report said. In contrast, the U.S. e-business sector is growing at the slower rate of 67.9 percent, though it is expected to reach a whopping $1 trillion by 2004. "There's more work to be done to close a gap that remains too large," Wetmore said, "especially in the small business sector."

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Web To Generate USD269 Billion In Sales
Forrester Research (10/02/00)

The Web and web-enabled devices are projected to generate USD269 billion in sales, and influence another USD378 billion in offline sales by 2005. PCs should hold their lead in the market, reaching USD246 billion in sales in 2005, with interactive television playing a supporting role, followed by mobile devices. Non-PC devices are predicted to close just USD23 billion in sales by 2005, but will influence another USD128 billion in offline sales. In the US, PC-based sales will total USD45 billion in 2000. By 2003, these sales should reach USD154 billion, while Internet-enabled devices are expected to influence USD146 billion in offline sales.

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Online Sales Hit $5.5 Billion In Second Quarter
CNET News (08/31/00)

Sales in the first quarter of this year totaled $5.24 billion, also 0.70 percent of total purchases, previously reported as $5.26 billion. Today's quarterly figures are part of the Commerce Department's scientific survey to address the effect of Internet business on the economic expansion, now in its 10th year. The government surveyed 12,000 businesses, including mail-order and online retailers, furniture stores, building-materials dealers, new-car dealers, groceries, and department and apparel stores. Online travel services, financial brokers and ticket-sales agencies were not included. The survey was conducted at the same time as data was collected for the monthly retail-sales reports during the second quarter. Second-quarter e-commerce sales rose 5.30 percent compared with a 0.80 percent first-quarter increase. Total retail sales during the second quarter of the year rose 9.10 percent after falling 8.90 percent in the first quarter.

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Internet Is Big Business In Canada
NUA Internet Surveys (08/21/00)

Canadian businesses are reaping the rewards of ecommerce, according to a recent report. One in every 10 companies used the Internet for online services and electronic retailing in 1999, with sales amounting to 0.2 percent of total business activity. A large number of customer orders were received over the Internet in 1999, and sales reached USD4.4 billion, though these sales include offline and online methods of payment. Of this figure, USD4.2 billion was generated by the private sector.

Canadian retailers were second to manufacturers with Internet revenues at USD610.6 million in 1999, and these represented 15 percent of total online sales.

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