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What Businesses Need to Know About the Internet...
What are the important research considerations for businesses that conduct transactions over the Internet?

First, here is the latest UCLA Internet Report (a PDF file) that contains the research of importance to businesses that conduct transactions over the Internet for the last three years. Click HERE to download the UCLA Internet Report.pdf file.

Below are some tables that include Barriers To Online Purchasing (200). Concerns US Customers Have About Making Internet Purchases, Online Purchase Revenues 1999-2004 (in US dollars), Projected Online Users Versus Buyers In The US, 2000 - 2005, Proportion of Abandoned Transactions At Web Storefronts, US B2C eCommerce Revenues, 2000-2005, US Online Retail Revenues, 2001 - 2005, US Online Retail Sales, 2004-2008, US Q4 Online Retail Sales, 1999 - 2003, Value Of US Online Sales, 2003 & 2008, and Web Shoppers Optimistic About Online Security In 2004.


Barriers To Online Purchasing, 2000
Concerns
Total
Credit Card Security
79%
Disclosure of Personal Details
77%
Distrust of Web Retailers
48%
Complex Order Process
21%
Time Consuming Order Process
20%
Unfamiliar with Online Web Storefronts
40%
Source: PriceWaterhouseCoopers

Concerns US Customers Have About Making Internet Purchases
Concern
Great Deal
Fair Amount
Little
Not At All
Don't Know
Information Sold to Third Party
72%
11%
6%
9%
2%
Information Stolen from Web Databases
66%
13%
10%
10%
1%
Transmitting Credit Card Number
63%
13%
9%
13%
2%
Transmitting Address or Personal Data
61%
16%
9%
13%
1%
Receiving Unwanted E-mails
57%
16%
11%
14%
2%
Source: Ipsos Public Affairs, December 2003

Online Purchase Revenues 1999 - 2004 (in US dollars)
Year
Business to Consumer
Total Web Sales
1998
8 Billion
50 Billion
1999
20 Billion
80 Billion
2000
45 Billion
190 Billion
2001
90 Billion
330 Billion
2002
180 Billion
590 Billion
2003
220 Billion
900 Billion
2004
300 Billion
1.400 Billion
Source: Keenan Vision

Projected Online Users Versus Buyers In The US, 2000 - 2005
Year
% of Population
Online Users (Millions)
Online Buyers (Millions)
2000
44%
125
48
2001
50%
140
65
2002
55%
150
75
2003
60%
170
90
2004
64%
180
100
2005
68%
190
120
Source: Jupiter Media

Proportion of Abandoned Transactions At Web Storefronts
Scenario
Total (Percent)
Abandoned and Non-Salvageable
70.0%
Successfully Completed
22.2%
Abandoned but Salvageable
7.8%
Source: Datamonitor

US B2C eCommerce Revenues, 2000-2005
Year
Total (USD Billion)
2000
$41.55
2001
$51.58
2002
$70.34
2003
$90.13
2004
$109.70
2005
$133.30
Source: eMarketer , April 2003

US Online Retail Revenues, 2001 - 2005
Year
Total (USD Billion)
2000
$27.3
2001
$32.6
2002
$50.3
2003
$68.4
2004
$88.2
2005
$109.4
Source: eMarketer , March 2002

US Online Retail Sales, 2004-2008
Category
2004
2008
Online Retail Sales
$65 Billion
$117 Billion
Internet Users Buying Online
30%
50%
Average Online Spending
$585
$780
Sources: Jupiter Research , January 2004

US Q4 Online Retail Sales, 1999 - 2003
Year
Amount (USD Millions)
% Increase vs. Previous Year
1999
$5,393
2000
$9,248
71.5%
2001
$10,788
16.7%
2002
$13,770
27.6%
2003(1)
$17,776
29.1%
Sources: US Department of Commerce, August 2003
(1) eMarketer , January 2004

Value Of US Online Sales, 2003 & 2008
Year
Total (USD Billion)
2003
$95.7
2008
$229.0
By 2008, 10% of total US sales will be completed online
More Than 63 million US households will shop online in 2008
Source: Forrester Research , August 200

Web Shoppers Optimistic About Online Security In 2004
Opinion
Percentage (%)
Will Be Safer
61%
No Change
34%
Will Be Less Safe
5%
Source: AC Nielsen , March 2004


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