IT Facts for E-commerce

44% of businesses rely on credit cards for financing

Share of businesses using credit cards has jumped from 16% in 1993 to 44% today, according to National Small Business Association. The proportion using bank loans dropped from 45% to 28%. A Federal Reserve survey showed that share of firms using business credit cards jumped from 34% in 1998 to 48% in 2003.

6% of US households with income average or above own a timeshare

6% of US households with an annual income of $45,000 or above own a timeshare unit. According to Ernst & Young, sales of timeshares reached $10.6 bln in 2007, up from just $6 bln in 2003.

Premium Internet video to generate $6 bln by 2013

TV-based Internet video receivers and connected consumer electronics platforms will drive transactional revenues for premium Internet video services past $6 bln. U.S. consumers will spend over $6 bln for Internet video services by 2013, with direct-to-TV videos accounting for 75% of that revenue, according to Parks Associates.

$68 mln of domain sales conducted in the first half of 2008

Domain name sales in the first half of 2008 reached $68 mln, up about 12% from the same period 2007. Entire aftermarket did $700 mln in sales in 2006. Since then, sales likely have topped $1 bln, as estimatged by DNJournal for Forbes.

Top US music retailers: Apple, Wal-Mart, Best Buy, Amazon, Target

Without providing exact details on the number of digital tracks sold, NPD Group reports on top music retailers in the US in the first half of 2008. NPD’s data reflects the ongoing consumer shift from physical CDs to digital music, as iTunes maintained their leadership position reached earlier this year. Amazon rose from fifth place to fourth primarily for two reasons: first, online CD sales have seen less erosion than CD sales at brick-and-mortar stores; and second, Amazon launched its digital music store, Amazon.mp3, last year.

  1. iTunes
  2. Wal-Mart (Walmart, Walmart.com, Walmart Music Downloads)
  3. Best Buy (Best Buy, Bestbuy.com, Best Buy Digital Music Store)
  4. Amazon (Amazon.com, AmazonMP3.com)
  5. Target (Target and Target.com)

50% of all Internet users will make online purchases in 2008

China’s online population is forecast to grow from 275 mln users in 2008 to 375 mln users in 2012, according to IDC. Nearly half of all Internet users will make online purchases in 2008. By 2012, there will be more than 1 bln online buyers worldwide making business to consumer transactions worth $1.2 trillion. Business to business e-commerce will be ten times larger, reaching $12.4 trillion worldwide in 2012.

41% of online buyers of music ordered a CD and 58% downloaded digital files

41% of online buyers of music ordered a compact disc and 58% downloaded digital files, according to Pew Internet Project. Put differently, 13% of music buyers say their most recent music purchase was a digital download of music files. 51% of music buyers who used the internet in their research said that online information had no impact at all; 37% said it had a minor impact; 12% said it had a major impact.

56% of music buyers could buy music online

56% of those who bought music most recently said they could have made the purchase online, while 37% said they could not have, according to Pew Internet Project. Among the 22% of music purchasers who bought most recently online, 61% could have bought their music in a store, with 35% saying they could not have done that. Just 7% of online music purchasers said they visited a store to sample music or ask for some help before getting their music online.

78% of US cell phone purchases are made in store

The overwhelming majority of cell phone buyers make the purchase in a store - some 78% do, with 12% buying online and 9% by some other means. Among the narrower set of those who use the internet in their cell phone research, 26% bought their device online. 75% of those who bought online could have bought their phone in a store if they had wanted. 61% who bought their phone in a store could have bought online, though 30% said they could not have done that, according to Pew Internet Project. With the sizable influence online information exerts on 39% of cell phone purchasers, it is understandable that this group is more likely to buy their phones online. Some 26% of this group bought a cell phone online, although 70% still go down to the store.

39% of cell phone buyers research phones on the internet

People take advantage of the internet to explore cell phone options (39% do) and within this group, many report that something they found online influenced the choice they made. At the same time, perhaps because a cell phone has a plethora of technical features, people are drawn to expertise associated with traditional gatekeepers, according to Pew Internet Project. More people consult a salesperson (59%) or go to a cell phone store (46%) than use the internet (39%) when considering a cell phone purchase. Among those using the internet to gather information, 76% go to websites of cell phone manufacturers or phone companies. Among those who need to troubleshoot a phone once they’ve bought it, most use the owner’s manual (68%). Just 11% of online users consult the internet to address the problem and 7% look for experiences of others that might be posted online. Nonetheless, cell phone buyers carefully scrutinize their choice even as they rely on traditional sources of expertise. Some 59% of those who use the internet to get information use websites to compare features of cell phones and half read reviews of cell phones on websites or blogs.

How do online music buyers find out about new music?

Ages 18-35 Ages 36-50 Age 51+
Going to the website of an artist,
band, or record label
41% 38% 30
Listening to free streaming
samples of songs online
46 25 21
Visiting an online store that sells
music
42 32 26
Downloading music files to your
computer
42 24 14
Listening to an internet radio
station
29 25 21
Reading online reviews or blogs
about songs and artists
28 22 21
Watching music videos online 34 21 16
Going to a MySpace profile of an
artist, band, or record label
31 13 8
Receiving an email from a band,
artist, or record company
15 9 8
Median number of online musicseeking
activities
3 2 1
Number of cases (internet users) 133 171 190
Source: Pew Internet Project

What online users do after buying music

Ages 18-35 Ages 36-50 Age 51+
Go to the artist’s or band’s
website
45% 40 29
Look online for live performances
by that artist
29 28 26
Read websites or blogs about the
music
33 26 16
Post the music to your page on
MySpace, Facebook, or another website
16 4 4
Post your own reviews, ratings,
or comments online about the music
10 4 5
Median number of online musicseeking
activities
1 1 0
Number of cases (internet users) 133 171 190
Source: Pew Internet Project

12% of music buyers purchase digital music files

Only 12% of music buyers report that they purchase digital music files, just 23% of internet-using music buyers say online resources were most important to their decision, and 63% say online information had no impact on their most recent purchase, according to Pew Internet Project. 10% of buyers seeking an alternative path (e.g., downloading digital files) can have large impacts on the model. When 23% of younger internet-using buyers, arguably the most active and attractive customers, purchase mostly or entirely digital files, the disruption is consequential.

The Brazilian IT market will grow to $24 bln

IDC predicts that the year 2008 will close with total spending on hardware, software, and services in Brazil at $23 bln, nearly equal to the $24 bln expected in the Spanish market. Northeast region of Brazil is the fastest growing region for IT investment in Brazil even though it is not among the top 3 regions in the country. IT investments by companies in this region are accelerating at an impressive rate and at a higher growth rate than any other region. The Northeast accounts for 11% of total IT spending in Brazil now, or $2.5 bln. All IT spending in Brazil this year, 33% will be in the hands of corporations with more than 500 employees. At the same time, small companies, which have been investing steadily in technology over the past several years, will account for 13% of total IT investment in the country.

How people learn about music they may want to buy

Ages 18-35 Ages 36-50 Age 51+
Hearing a song on the radio, on
TV, or in a movie
90% 85% 76%
From friends, family members, or
co-workers
72 70 51
Getting copies of songs from
friends
53 33 23
Visiting an offline music store 43 36 26
Going to a concert given by an
artist
35 29 37
Number of cases (all
respondents)
148 186 286
Source: Pew Internet Project

53% of online Americans purchased music in 2007

Some 27% of internet users say they have downloaded music from the internet, according to March 2006 survey. Now 53% of respondents said they had purchased music in 2007, and 26% of respondents were directed to the module with detailed questions about music purchasing. Respondents who were directed to the music module are not representative of the general population, according to Pew Internet Project. They are more likely to be internet users 83% and to have broadband at home (59% do), which compares to 73% and 50% respectively in the general population. They are also slightly younger, with a median age among adults of 43 compared with 45 in the general adult internet population.

32% of internet users buy music online

62% of internet users who used the internet to find out about music they bought cite something they found offline with 32% saying it was something they found on the internet, according to the Pew Internet Project. When queried about specific ways the internet influenced their music buying decisions, here is what internet users who bought music in the previous year said: 68% said it helped them learn more about bands or artists they were interested in; 57% said it introduced them to new artists they had not heard about before; 42% said it helped them save money in buying music; 37% said online information led them to buy more music than they otherwise would have; 30% said online information changed the specific songs or album they had in mind.

56% of those who bought music most recently said they could have made the purchase online

For the most part, those who said their most recent music purchase was in a store were doing this by choice. Some 56% of those who bought music most recently said they could have made the purchase online, while 37% said they could not have. Among the 22% of music purchasers who bought most recently online, 61% could have bought their music in a store, with 35% saying they could not have done that. Just 7% of online music purchasers said they visited a store to sample music or ask for some help before getting their music online, according to the Pew Internet Project. As to the nature of the music purchase - CD or digital download - some 41% of online buyers of music ordered a compact disc and 58% downloaded digital files. Put differently, 13% of music buyers say their most recent music purchase was a digital download of music files. When asked whether information found online had a major impact, minor impact, or no impact at all, here is what music buyers who used the internet in their research said 51% said online information had no impact at all; 37% said it had a minor impact; 12% said it had a major impact.

62% of Americans say all of the music they buy are CDs

62% of respondents in the music module said all of the music they buy are CDs. 20% said most are CDs; 7% said most of their purchases are individual digital files; 5% said all of their purchases were digital files; 3% said their purchases were equally split between CDs and digital files, according to the Pew Internet Project. 74% of music buyers say they went to a store, while 22% say they bought music online. Even among those who use the internet to find out about music, 33% said their most recent purchase was executed online.

How users learn about new cell phones

Go to websites of cell phone
manufacturers or phone companies
76%
Use websites that compare cell phone
features and prices
59
Read reviews of cell phones on
websites or blogs
50
Post queries in chat rooms, listservs or
other online forums asking for information
7
Source: Pew Internet Project

Sharing content and buzz after buying music

Talk with friends or family about the
music
77%
Share the music with others 62
Watch a music video of the song or
artist
56
Go to see the artist or band perform at
a concert
47
Transfer the music to a CD, computer,
or MP3 player
44
Buy other merchandise, such as tshirts
from the same artist
20
Remix the music into your own
creation
9
Source: Pew Internet Project

27% of cell phone buyers said online information had a major impact on their decision

Among the 39% of respondents in the cell phone module who use the internet for research on their cell phone buying decision: 27% said that online information had a major impact on their decision; 46% said it has a minor impact; 27% said it had no impact at all. When asked to focus on the importance of online versus offline sources of information in the cell phone purchase, 49% of this same set of online users said that online information was most important, with 46% saying something found offline was most important, according to the Pew Internet Project.

How people learn about music they may want to buy

Ages 18-35 Ages 36-50 Age 51+
Hearing a song on the radio, on
TV, or in a movie
90% 85% 76%
From friends, family members, or
co-workers
72 70 51
Getting copies of songs from
friends
53 33 23
Visiting an offline music store 43 36 26
Going to a concert given by an
artist
35 29 37
Number of cases (all
respondents)
148 186 286
Source: Pew Internet Project

12% of users buy their cell phone online

The overwhelming majority of cell phone buyers make the purchase in a store - some 78% do, with 12% buying online and 9% by some other means, according to the Pew Internet Project. Among the narrower set of those who use the internet in their cell phone research, 26% bought their device online. Three-quarters of those who bought online could have bought their phone in a store if they had wanted. Likewise, most (61%) who bought their phone in a store could have bought online, nearly 30% said they could not have done that. With the sizable influence online information exerts on 39% of cell phone purchasers, it is understandable that this group is more likely to buy their phones online. Some 26% of this group bought a cell phone online, although 70% still go down to the store.

How Internet users find out about new music

Ages 18-35 Ages 36-50 Age 51+
Going to the website of an artist,
band, or record label
41% 38% 30
Listening to free streaming
samples of songs online
46 25 21
Visiting an online store that sells
music
42 32 26
Downloading music files to your
computer
42 24 14
Listening to an internet radio
station
29 25 21
Reading online reviews or blogs
about songs and artists
28 22 21
Watching music videos online 34 21 16
Going to a MySpace profile of an
artist, band, or record label
31 13 8
Receiving an email from a band,
artist, or record company
15 9 8
Median number of online musicseeking
activities
3 2 1
Number of cases (internet users) 133 171 190
Source: Pew Internet Project