|A-1 Resources--Online Shopping|

Shopping

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Since its beginning less than 5 years ago internet shopping has grown tremendously.

• More people are using the Internet. US figures from Jupiter Media Metrix show that "unique visitors' - a coarse measure of the Internet user group - grew by around 10 per cent between March 2000 and February 2001. (Growth is much stronger in a number of other countries.) US unique visitor numbers rose particularly strongly in January and February of 2001. As Jupiter points out, this was just when the "end of the Internet" gloom was at its strongest. Many dot-coms may be dying, but in the US the users just keep on coming to the sites that remain. And what's true for the US has in the past generally held true for Australia too. The growth in Internet users continues to slow in percentage terms, but that's partly because so much of the potential audience is now online - more than half of all adults in the US and Australia.
• The Net is becoming a preferred source. When US Internet users are randomly surveyed, they say the Web is a more important news source than newspapers, by a three-to-one margin, according to Lyra Research. Some 46% also said they'd spend more time on the Internet if they had more free time - ahead of TV (29%), books (11%), reading the newspaper (5%) and magazine reading and radio listening (3% each).
• As users get used to the Net, they shop more. Now that so many people are online, activity matters far more than raw user numbers. The analysts at Jupiter focus much of their attention on the strongly-growing group of "veteran" US Internet users - people online for two years or more. These people show "a markedly higher propensity to shop online", the Jupiter analysts claim in a May 2001 report. Jupiter reckons it can judge trends in online commerce from statistics on the use of "secure mode" at retail sites. And such use soared from 24% of US users in January 2000 to 45% in January 2001. A 36-country study from Taylor Nelson Sofres in early 2001 reportedly showed 15 percent of Internet users around the world shopped online in the past month, up from 10 percent a year ago, with books, CDs, clothes, groceries and holidays the most-bought items.
• Online shopping is still small, but booming. Management consultancy Boston Consulting Group (BCG) rates the Web as the fastest-growing retail channel in North America. It reckons North American online retail revenue grew 66 percent in 2000 to $US44.5 billion. That's still less than two per cent of all retail sales, but it won't be for long at that growth rate. BCG expects online retail revenues to reach $US65 billion in 2001. Online favorites include computer hardware and software, travel, and books - more than one in every ten books bought in North America in 2001 was bought online.
• The Internet
• |Title| Internet Shopping Guide

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Holiday online spending, excluding travel, reached a record $15.8 billion from Nov. 1 through Dec. 19, according to the most recent "eSpending" survey by Goldman Sachs, Harris Interactive and Nielsen/NetRatings, released Monday.

That is up 37 percent from the same period last year and already surpasses total 2002 online spending of $13 billion between Nov. 1 and Dec. 25.

"This has definitely been a strong online-shopping season," said Abha Bhagat, senior analyst with Nielsen/NetRatings.

Bhagat attributed the impressive showing to consumers starting their online shopping earlier and spending more online, taking advantage of discounts and promotions by e-tailers.

Online shopping peaked the second week in December, as the holiday shipping season came to an end. Consumers spent $2.8 billion online for the week of Dec. 13 through the 19th, down slightly from the $2.95 billion spent online the previous week.

The most popular categories this season were apparel, $3.1 billion spent through Dec. 19, up 40 percent over 2002; toys and video games, $1.9 billion spent, up 21 percent; videos and DVDs, $1.4 billion spent, up 58 percent; books, $1.4 billion spent, up 39 percent; and music, $790 million spent, up 20 percent.

Bhagat said those are the same as last year's most popular categories.

The eSpending reports are based on weekly national surveys

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