Despite 2000’s dot-com woes, online retailing continues to grow, according to New York-based research firm Ernst & Young LLP. The company’s “Global Online Retailing” study, which surveyed 4,400 online buyers in 12 countries (including 1,400 in the U.S.), found that many consumers around the globe are pleased with their online shopping experiences, despite the crash-and-burn of numerous pure-play e-tailers.

The report predicts that four online-shopping trends will emerge in 2001: the importance of a multichannel strategy among consumer catalogers; an increase in the number of instore shoppers who will now buy online; consumers expecting the same merchandise selection online and offline; and consumer demand for user-friendly but sophisticated technology when shopping online.

The study found that 74% of Internet users in the U.S. made an online purchase in 2000, and 87% expect to make an online purchase in the next 12 months. Some other key findings in the report show that on average in 2000, U.S. online buyers made 13 purchases, spent $896, and bought from seven Websites. And 25% were “frequent buyers,” defined as those who made at least 10 online purchases and spent more than $500. Frequent buyers spent on average $2,315 and made an average of 30 purchases.

But despite U.S. online shoppers’ satisfaction with the Internet as a commerce medium, many are unhappy with the shipping costs of online catalogs. Sixty-four percent say the top improvement they would like to see online is for companies to cover shipping costs, while 57% say that free shipping would be an incentive for them to visit a Website more often. And not only do 52% of online buyers say that shipping costs are the top deterrent for online shopping, 45% also say that high shipping costs make for the top reason for abandoning a shopping cart.

While 39% of online buyers say they shop in stores just as often as they shop online, 57% claim they shop retail less often.

Top U.S. Online Purchase Categories

Books	52%
CDs/recorded music	49%
Computer products	49%
Apparel and accessories	37%
Consumer electronics	28%
Toys	28%
Videos	27%
Health and beauty	25%
Source: Emst & Young LLP

Despite 2000’s dot-com woes, online retailing continues to grow, according to New York-based research firm Ernst & Young LLP. The company’s “Global Online Retailing” study, which surveyed 4,400 online buyers in 12 countries (including 1,400 in the U.S.), found that many consumers around the globe are pleased with their online shopping experiences, despite the crash-and-burn of numerous pure-play e-tailers.

The report predicts that four online-shopping trends will emerge in 2001: the importance of a multichannel strategy among consumer catalogers; an increase in the number of instore shoppers who will now buy online; consumers expecting the same merchandise selection online and offline; and consumer demand for user-friendly but sophisticated technology when shopping online.

The study found that 74% of Internet users in the U.S. made an online purchase in 2000, and 87% expect to make an online purchase in the next 12 months. Some other key findings in the report show that on average in 2000, U.S. online buyers made 13 purchases, spent $896, and bought from seven Websites. And 25% were “frequent buyers,” defined as those who made at least 10 online purchases and spent more than $500. Frequent buyers spent on average $2,315 and made an average of 30 purchases.

But despite U.S. online shoppers’ satisfaction with the Internet as a commerce medium, many are unhappy with the shipping costs of online catalogs. Sixty-four percent say the top improvement they would like to see online is for companies to cover shipping costs, while 57% say that free shipping would be an incentive for them to visit a Website more often. And not only do 52% of online buyers say that shipping costs are the top deterrent for online shopping, 45% also say that high shipping costs make for the top reason for abandoning a shopping cart.

While 39% of online buyers say they shop in stores just as often as they shop online, 57% claim they shop retail less often.