Merchants who do not provide an eCommerce channel to their customers risk losing market share to their competitors. With the online population looking more like the overall U.S. population, companies must serve their customers online, or their competitors will do it for them.
IDC`s Internet and eCommerce Strategies program manager Jill Frankle believes "Online users have become a nation within a nation. Merchants can no longer ignore the impact of the growing online population. As the percentage of PC households accessing the Internet increases, eCommerce in the U.S. also grows exponentially."
The growth of the online nation means the scope of the Net is constantly changing. Nearly 40% of home online users reported that they have been using the Web for only 6 months or less, and nearly 60% stated that they have been using it for only the last year. IDC forecasts that by 2002, 60% of the home online user population will be new users who were not on the Net in 1998.
The online population is broadening beyond just the young, wealthy, urban, and male. Households with children display strong online usage; about one out of every three households with children has online access. The percentage of women online is nearing parity with the overall population, increasing from 43% in 1997 to 48% in 1998.
Another important segment that will grow in 1999 is online buyers. These users are more engaged by the Internet as a whole, are more price sensitive, are heavier users of news and information, and are concerned about easier navigation on the Net. While online buyers do not look a lot different from other online users, they differ in one important characteristic: they buy goods and services online. Merchants should stand up and take notice of this emerging group. They are terrific prospects for the merchant who is considering offering an eCommerce distribution channel.
"Now is the time for traditional merchants to offer an eCommerce distribution channel if they do not want to get left behind. If they do not, they run the risk of losing market share to the more savvy marketer. The strength of the Internet should not be underestimated," Frankle said.
"For those who are experienced online merchants, they would be better served to focus their marketing efforts on the basics. This includes price, customer service, site performance, and easy navigation," says Barry Parr, research director in IDC`s Internet and eCommerce Strategies research program. "We believe that the best prospects for online customers lie among those who have already purchased."
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