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E-commerce gaining acceptance
Consumers report that they are generally pleased with the online shopping experience and plan to do much more of it in the future. Consumer shopping online is gaining acceptance in every country. In the U.S., 39 million people shopped online in 1999, up from 17 million in 1998. According to the report issued by eMarketer, the number of U.S. Internet shoppers in the U.S. will soar to 106 million by 2003.
As a result, the U.S. revenues from online consumer shopping will grow from $37 billion by year-end 2000 to $68 billion in 2003, according to Forrester Research.
More online purchases
Consumers are making more online purchases than ever before and are spending more each time they
shop online. In 1997, U.S. consumers made an average of four online purchases per year. In 1998 the
average increased to six purchases; and in 1999, it reached 13 purchases annually. Researchers predict
that consumers should make an average of 25 online purchases annually by 2004.
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Zenith
Development is
positioned to capture a leading share of the U.S. market. The Company is
presently preparing to deploy the first wave of interactive web-enabled
terminals in 2003, after extensive field testing in 2000. Zenith
Development has already deployed ATM machines to various companies,
small to large. Including, but not limited too some major brand
names as Amerisuite Hotels, Wellsley Suite and Inns and Sheraton Hotels.
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Spending more online
Incremental spending occurs when consumers navigate the Internet. Shoppers in the U.S. report that on
average, 40% of purchases would not have occurred otherwise. For merchants, going online is not just a market protection strategy. Rather it is a growth strategy because it generates new sales. Consumers are also inclined to make impulse purchases online, as they do in stores.
Pay Per Use
According to a recent article quoting Jupiter Media Metrix, online paid subscription use will be a new money-making segment on the Internet for Yahoo, Microsoft, AOL, Portal Terra Lycos and others. Their reason: Customers will pay for some things. About one-third of Internet users will pay for premium e-mail services, or online gaming or entertainment options. In 2001, Yahoo introduced 18 paid services to users and generated millions of dollars in incremental revenues. Analyst predict a $5.8 billion market for paid online services by 2006 up from $1.6 billion in 2002. The online gaming industry is estimated to be $1.5 billion annually by 2005.
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