Ecommerce Finally Delivers

If only people could have been more patient in the late 90s. At that time, everyone was touting the next big thing in Internet technology. Of course that next big thing was supposed to convince millions of consumers to spend their disposable income without hesitation. Companies that developed an online “ecommerce” model swelled with fast cash via IPOs. Irrational exuberance was everywhere, and that was the problem. The promise of the Internet was the ability to open the floodgates to new business opportunities and the largest collection of consumers – the whole world. People expected too much too fast, and the walls came tumbling down. So here we are ten years later, older and wiser. Ecommerce and the Internet in general are finally delivering on those early promises.

So what has changed in the post-bubble era compared to the pre-bubble era? To start, the online population is significantly larger and better connected. In 1995, only 16 million people worldwide were connected to the Internet. By the end of 2000, 451 million people arrived online. As of March 2005, 888 million people are actively using the Internet. This is tremendous growth. In the United States alone, it is estimated that 221 million people use the Internet out of a population of approximately 328 million. Over half of these users that connect to the Internet at home have broadband connections as of July 2004. Technology itself has improved to accommodate this growth. Servers are more stable, websites more powerful, and the user experience is more dynamic. Even consumers have changed. In the early days, conducting an online transaction was a scary experience. Today, consumers have a better understanding of secure servers that allow for safe online transactions. More people, better technology, professional web development, and an informed public are creating a perfect storm of ecommerce cash.

Consumers are increasing their online purchasing activity. 51 percent of U.S. consumers have researched products and services on the Internet and have continued to purchase that product or service online. Online holiday shopping grew approximately 26 percent in 2004 compared to 2003. More than $83 billion was spent online in the U.S. in 2004 even though this is only 1.9 percent of total consumer spending activity. More and more, stories are being reported of profitable online business models. Can anyone say eBay? But, you don’t have to be a top Internet giant to take advantage of ecommerce opportunities. People everywhere are carving out their special niche in the marketplace. In fact, a recent study by ACNielsen of 400 small businesses revealed that 15 percent of those businesses relied solely on the Internet to survive. 51 percent reported that the Internet has made their business more profitable.

So what can you do to get in on this true opportunity? First and foremost, you need a solid business model, one that is driven on profits. Plan, organize, execute and monitor the results. Be sure to have your website professionally designed. There are many factors to take into consideration, and the experts can guide you. Then, utilize interactive marketing techniques such as search marketing, email and rich-media to get the site active with customers. Be sure to be results based. Again, professionals are at your disposal. Stay away from traditional agencies. They are too expensive, and they do not get the concept of measured results-based marketing. The time to start is now. The next 5 years is going to be an exciting time as the promises of the Internet are fulfilled.