E-Commerce, Mobile Access Drawing Interest from Net Users

E-Commerce, Mobile Access Drawing Interest from Net Users

By Michael Pastore

As the official ISP of some 25 million subscribers, it's in America Online's best interest to see what Internet users do on the Net, think of the Net, and perhaps most importantly, have in store for the Net. For the third year, AOL had Roper Starch conduct its Cyberstudy of Internet users.

This year's study found that online e-commerce activities have exploded into the mass market, as millions of consumers discover services like shopping, banking, news, stocks, and health information. The study also shows a strong and growing demand for access to the online medium through cell phones, TVs, voice portals, and other non-PC devices.

According to the study, online commerce has become an everyday activity for millions of users. This year, more than half of the survey's respondents (56 percent) say that they currently shop online, nearly double the percent of those who did in 1998 (31 percent). Similarly, as the holiday season approaches, the percent of users who say they intend to shop online during that period has doubled from 14 percent in 1998 to 28 percent today.

"Two years ago, most online users were only dipping their toes in the electronic commerce pool, but this year, they're diving right in," said Marshall Cohen, America Online Senior Vice President of Brand Development. "With a majority of users saying they now shop online and 80 percent saying they research products online before buying something, we're seeing a true coming-of-age for electronic commerce."

In addition to shopping more frequently, consumers are also spending more when they shop online, with the percent of respondents who say they spent more than $500 online in the previous 3 months jumping by more than one-third over the past year (from 19 percent in 1999 to 26 percent now). The percent of users who say they plan to increase the number of online purchases they make in the next few years has jumped to 49 percent from 41 percent in 1998, and when the timeframe is expanded, 40 percent of users think they will do "almost all" of their shopping online within 10 years.

In addition to shopping, there has been extremely rapid growth in a wide range of other online activities -- from banking (up from 16 percent to 25 percent since 1998) to trading stocks (up from 11 percent to 16 percent since 1998) and booking travel reservations or tickets (up from 32 percent to 49 percent since 1998).

Online research is now a standard part of the buying process with 80 percent of online users saying they research products online before they make a purchase. The majority of users also get news (76 percent), health information (70 percent), and local entertainment info (50 percent).

As users grow accustomed to integrating the online medium in their everyday lives, they are also increasingly demanding access to it from any place, at any time.

Internet Use, 1998 vs. 2000

Use

1998

2000

Shop online

31%

56%

Intend to shop online in future

14%

28%

Plan to increase online purchases

41%

49%

Banking

16%

25%

Trading stocks

11%

16%

Source: AOL/Roper Starch Cyberstudy

More than half of users (54 percent) say they would be interested in using a small Internet device to go online