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Insights on U.S. Household Computer and Internet Use, Online Shopping Trends

This document provides an overview of key statistics regarding U.S. households with computers and internet access. It highlights global online shopping behavior, including countries with the highest percentages of adults purchasing online, barriers to online purchasing, and the profile of online shoppers by gender, age, and income. Furthermore, it analyzes the factors influencing shopping cart abandonment and the most frequently purchased online categories. It also discusses the advantages of different types of e-tailers and notable successes like Amazon.

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Insights on U.S. Household Computer and Internet Use, Online Shopping Trends

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  1. HED 460

  2. HED 460

  3. Question #1 • What percentage of U.S. households have a computer at home? • 55% HED 460

  4. Question #2 • What percentage of U.S. households have a Internet access at home? • 51% HED 460

  5. Question #3 • After the USA, what country has the highest percentage of adults going online? • Netherlands – 46% followed by Australia at 45% and Hong Kong at 42% HED 460

  6. Question #4 • After the USA, what country has the highest percentage of adults purchasing online? • Japan, with 20%, then UK and Canada with 18% and Germany with 17% HED 460

  7. Question #5 • What is the profile of online shoppers? (gender, age, income) • 57% males w/online access shop • 25-34 (66%), then 35-44 (49%) • > income, higher percentage shop HED 460

  8. Question #6 • What are the 3 attributes of favorite web sites? • Good product selection • Competitive prices • Ease of use HED 460

  9. Question #7 • What is the greatest barrier to online purchasing? • Fear factor - Credit card safety (69%), then privacy (61%) HED 460

  10. Other barriers • Other fears • Returns • Customer service questions answered • Feel factor • Feel, see, try out/on • Prefer shopping at stores HED 460

  11. Try-out/”experience” • Zanybrainy.com – selected toys • 3D interaction to zoom in and out, “use” products (sharperimage.com) • 3D shoe boutique (neimanmarcus) HED 460

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  14. Zanybrainy link HED 460

  15. Other barriers • Fulfillment factor • Not willing to pay shipping/handling • Don’t want to wait for products • Frustration factor • Difficult to shop online • Completing transaction takes too long HED 460

  16. Question #8 • What is the greatest barrier to online purchasing for clothing? • Inability to try on clothes for fit before purchase (81%) • Unable to feel material quality (45%) • Concern about ease of return (44%) HED 460

  17. The Fit Issue • Hat size, “Melon Meter” (lids.com) • Shop by body type (lucy.com) • Eight virtual boutiques • Virtual models (landsend.com and jcpenney.com) • Fit guides and comparisons (pants@gap.com and eddiebauer.com) HED 460

  18. Question #9 • What is the cause of e-shoppers abandoning their shopping carts? • Excessive shipping costs (1/2) • 66% abandonment rate • Present shipping costs up front HED 460

  19. Question #10 • What is the most frequently purchased online category? • Media (books, CDs/cassettes, videos, software) • Amazon.com HED 460

  20. Question #11 • What categories experienced the highest growth levels? • Toys • Infant/children/teen clothes • Home office supplies • Cosmetics/fragrances HED 460

  21. Question #12 • How much are consumers spending on Internet purchases? • $230 in 1997 • $1200 in 1999 • Users estimate 36% of total retail spending will be on the Internet HED 460

  22. Question #13 • What is the main advantage of being a pure-play e-tailer? • Focused and nimble • What is the main advantage of being a multichannel e-tailer? • Brand name HED 460

  23. What has Amazon done right? • Amazon simplifies shopping • Equity built with consumers is saving Amazon with investors • Selection, competitive prices • Ease of navigating site/convenience • Delivery speed and options HED 460

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