RETAILERS OPTIMISTIC ABOUT ON-LINE PRESENCE
By Adnews Staff
Eighty-one per cent of U.S. retailers expect their Web sites to be profitable within two years, according to a study done by U.S.-based Ernst & Young. The study also predicts that half on-line sellers expect to generate 20% of their total sales from their Web sites. Retailers are very optimistic about the profitability of their site, with 67% predicting their sites will be profitable in their first year of operation. Manufacturers are more cautious, with 40% expecting profitability from their sites within a year. On the consumer side, 32% of the consumer respondents with on-line access have purchased products or services on the Internet. Sixty-four per cent of those with Internet access research products on-line, then later buy them through traditional channels. Ninety per cent of consumers said their on-line research is valuable to future purchasing decisions. The main reasons consumers shop on the Internet are: convenience, variety and cost convenience. Although most are concerned about Internet security, 52% of current Web buyers said they are happy with credit card security. Retailers want to be on-line to expand their market and to differentiate themselves from their competition.