Which businesses are actually successful on the net?
Today let's look at the kind of businesses that are doing well and why...
After the settling down of the dot-com bubble, sanity checks have brought realistic expectations to the fore. Initially,a backlash was seen, forecasting the doom of the Internet.Finally, merits have made the Internet gain its rightful place. In breakthroughs that show the promise of e-commerce wasn't all smoke and mirrors, four dot-coms recently reported their first quarterly profits. The list of theInternet’s publicly held money makers includes eBay Inc.,Amazon.com Inc., Yahoo! Inc., Overture Services Inc.,Expedia Inc., FindWhat.com Inc. and E-Trade Group Inc. Several privately owned dot-coms, including search engines Google and DealTime, say they have been making money, too.
In 2001, the last full year where numbers are available, theDepartment of Commerce broke out e-commerce sales versustotal U.S retail sales which revealed the $3.16 trillionretail industry saw a total of $37.7 billion in sales takeplace online -- comprising 1.2 percent of the total. Thisyear e-commerce is tracking about the same. Through the third quarter, the last full quarter where numbers are available, total retail sales were $856 billion versus $11billion in e-commerce, about a 1.3 percent share.
There were big gains made in Home and Garden, a 78 percentincrease; Furniture and Appliances, a 75 percent increase;and Toy shopping online with a 61 percent increase in the year 2002. There is no doubt that online shopping isgrowing.
Nielsen//NetRatings found that more than 35.5 million U.S.Internet users made shopping trips to virtual department store sites during the week ending November 3, 2002 - that's a 20 percent increase from the week ending October 20 androughly 14 million more than almost the same time period in2001.
There is a growing tendency amongst Internet users to pay for valuable content online. There are many reasons for this. First, only a few websites operated by big companies can afford to provide valuable content without being compensated. The rest of us can't be so generous. And trying to recapture our expenses by selling advertising on our websites has failed to pay the bills. Online advertising and click-through rates are on the decline.
Second, many people are now more than willing to pay to receive quality services and products even if they were offered for free earlier. Several paid content websites have already proven this unmistakable trend. The discerning buyervalues his/her time as also the quality of information orservice and is willing to pay for it.
Thanks for reading. Continued tomorrow...
After the settling down of the dot-com bubble, sanity checks have brought realistic expectations to the fore. Initially,a backlash was seen, forecasting the doom of the Internet.Finally, merits have made the Internet gain its rightful place. In breakthroughs that show the promise of e-commerce wasn't all smoke and mirrors, four dot-coms recently reported their first quarterly profits. The list of theInternet’s publicly held money makers includes eBay Inc.,Amazon.com Inc., Yahoo! Inc., Overture Services Inc.,Expedia Inc., FindWhat.com Inc. and E-Trade Group Inc. Several privately owned dot-coms, including search engines Google and DealTime, say they have been making money, too.
In 2001, the last full year where numbers are available, theDepartment of Commerce broke out e-commerce sales versustotal U.S retail sales which revealed the $3.16 trillionretail industry saw a total of $37.7 billion in sales takeplace online -- comprising 1.2 percent of the total. Thisyear e-commerce is tracking about the same. Through the third quarter, the last full quarter where numbers are available, total retail sales were $856 billion versus $11billion in e-commerce, about a 1.3 percent share.
There were big gains made in Home and Garden, a 78 percentincrease; Furniture and Appliances, a 75 percent increase;and Toy shopping online with a 61 percent increase in the year 2002. There is no doubt that online shopping isgrowing.
Nielsen//NetRatings found that more than 35.5 million U.S.Internet users made shopping trips to virtual department store sites during the week ending November 3, 2002 - that's a 20 percent increase from the week ending October 20 androughly 14 million more than almost the same time period in2001.
There is a growing tendency amongst Internet users to pay for valuable content online. There are many reasons for this. First, only a few websites operated by big companies can afford to provide valuable content without being compensated. The rest of us can't be so generous. And trying to recapture our expenses by selling advertising on our websites has failed to pay the bills. Online advertising and click-through rates are on the decline.
Second, many people are now more than willing to pay to receive quality services and products even if they were offered for free earlier. Several paid content websites have already proven this unmistakable trend. The discerning buyervalues his/her time as also the quality of information orservice and is willing to pay for it.
Thanks for reading. Continued tomorrow...
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