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Saturday, June 23, 2001

50% of All e-Commerce Businesses Purchase Online

Data collected in ActivMedia Research's "Real Numbers E-Commerce Study Series" shows that across all Web businesses, 50% purchase online for their company.

Business-to-Business (B-to-B) firms are somewhat more likely (54%) to migrate purchasing functions online. This may be because some large businesses require their vendors to be online for quality and just-in-time inventory control.

Similarly, Internet Service & Support (ISS/ASP) businesses also have a tendency to engage in online purchasing. For this Internet-entrenched group, the reason is more a function of the way they prefer to do business. These firms conduct most of their business online, so executing purchasing functions online comes naturally.

Approximately 43% of websites that market to consumers (B-to-C) make purchases online. This could be due to the fact that their supply chain isn't fully E-Commerce-enabled yet.

Among sites that purchase online today, approximately 21% of all company purchases are made online. By 2002, B-to-C websites plan to shift 43% of all company purchases to the Web while 40% of company purchases for the B-to-B sector will occur online.

ActivMedia Research's VP of Information Services Chris Anne Wheeler comments, "This research supports the claims of most analysts that B-to-B E-Commerce activity will surpass the retail online sector in the next couple of years. The economies of scale show it makes solid business sense to shift purchasing online. As technology for electronic bill presentment and then subsequent payment comes into its own and the kinks in backstage integration are hammered out, the cost savings of online purchasing will be garnered by all web businesses."