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PA e-Comm News JANUARY 4

Most experts agree that 2002 will be another year of consolidation for the e-commerce industry. With many of the weaker companies already gone, the remaining will look closely at the economic picture to assess their potential for survival. Many e-commerce firms pegged 2002 as the year to record their first profits. The improved stock prices of several large e-commerce companies may bolster everyone’s hopes for a better year, particularly for firms seeking additional capital funding. 

Last year, the online information sources used most often were company Web sites. A recent analysis of several economic sectors reported that company Web sites were found to be more widely used than online magazines and opinion sites.

EBay has stopped taking listings for its Auction for America, a plan to raise $100 million to aid victims of the September 11th terrorist attacks; according to insiders, the site has raised about $7 million. 

It continues to appear that the online shopping season fared well compared with volume in brick-and-mortar stores, with procrastinators virtually overloading the systems in the few days before Christmas. Amazon.com reported that it took orders for 37.9 million items from November 9th through midnight on December 21st; it also generated orders for more than 36,000 items ordered by frantic shoppers between December 21st and noon on December 22nd. Those customers were able to choose expedited shipping to make the Christmas delivery deadline. Many of these last minute orders were for gift certificates, magazine subscriptions and Circuit City purchases which could be picked up at a retail location. 

Despite a lot of the media reports, many B2B technology companies avoided downswing and survived; the top companies stand to prosper, especially those that use software and services to facilitate critical business processes like channel partner communication and collaboration. Also, the ability to offer a service component and not just software, such as FreeMarkets does, is a considerable advantage. The Pittsburgh-based firm couples reverse auction software with extensive supplier evaluation and sourcing services and gets involved in direct materials procurement. Analysts agree that B2B companies will continue to face uncertain times ahead. 

The number of women who used the Internet for holiday shopping outpaced the number of men who did so for the first time this holiday season. Approximately 58% of the online shoppers were women, an increase from last year’s 50-50 split with men. This appears to be further evidence that women are becoming more comfortable with shopping online. More than six million people made purchases over the Internet on a typical day this holiday season, up from about five million in December 2000. 37% of the women surveyed reported that they enjoyed shopping online "a lot" compared with only 17% of the men.

A recent report from the GAO is critical of the United States Postal Service for not implementing Internet-related programs. Previously, the GAO recommended that the USPS do a better job of identifying and monitoring its Internet-related initiatives, including e-commerce. The review, conducted earlier this year, pointed to activities such as electronic bill payment, secure messaging services and digital security services as areas for improvement. USPS had a goal in 2001 to generate $104 million in revenue, increase traffic to USPS.com, and improve customer satisfaction through its Internet activities. Currently, the USPS is responsible for 46% of the world's mail volume and generates $65 billion in annual revenue.

ANNOUNCEMENT: Attend an informative lunch seminar on Security and Networking. Learn about the latest security techniques and security software from industry experts. 

WHEN: Wednesday, March 20
WHERE: Penn State Harrisburg, Capital Union Building
              9 a.m.to11:30 a.m.
              11:45 a.m. to 1:00 p.m. Networking Luncheon
HOW MUCH: Members free
              Non members $25
For registration or more information call 717-238-9366.

NEWS & NOTES is a service of the PA e-Commerce Association. Please forward this e-mail to anyone else who might be interested in the content or in learning more about the Association. Remember to visit our website @  www.paecomm.org or call 717-238-9366.

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