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PA e-Comm News DECEMBER 14

Portals and Internet shopping malls attracted a larger share of the online shopping audience than major e-tailers last week, according to a recent report by Nielsen//NetRatings. Visits to sites such as Yahoo! and Lycos rose 81 %, more than online department stores such as Amazon.com and Walmart.com. These portals offer shoppers the opportunity to price compare among many vendors.

E*Trade recently raised its prediction for income in 2002 and instituted a stock buy back program. The company has branched out beyond trading by operating kiosks in Target stores and acquiring Dempsey & Co.

The federal government plans to draw a "map" of the Internet in an attempt to improve the country's ability to better respond to future cyber-attacks. The National Infrastructure Simulation and Analysis Center will diagram the complex links in an effort to better understand how various networks link together so a better security system can be devised. Congress is considering funding $900 million for research into cyber security. 

Not everything about the Disney auction site is a magical experience: many customers are complaining about service and quality. In a recent seven-day period, the company got 99 negative consumer ratings. The Disney auction site began in October 2000, selling items such as costumes and props from movies, collectibles and artwork. One major issue has been a lack of shipment within the 30-day expectation. 

It only took 18 months for BabyCenter.com to go from online star for parents to the brink of bankruptcy. And Gloss.com, a cosmetics retailer, struggled for customers. These two operations were lucky enough to get a second chance by being purchased by traditional retailing companies. However, both sites now have different missions than there designers envisioned: they are used to lead customers to products and services from bricks and mortar operations rather than online purchases.

Amazon.com recently launched "Amazon Access", a site designed to make online shopping easier for customers who use screen access software, which reads aloud text and links and is used by the visually impaired, to tap the Internet. A 1999 Census Bureau survey reported that over 1 million visually impaired people had access to the Internet and 80% of those use a computer on a regular basis. eCollege, a vendor of tech services for online education programs, announced plans to roll out products accessible to physically disabled faculty and students. 

Sales of cigarettes on the Internet are expected to soar in the coming decade and will pose new problems for tobacco controls to curtail underage smoking. Expectations are that 20% of U.S. cigarette sales will take place on the Internet during the next 10 years. A recent study found 88 sites selling cigarettes, half on Indian reservations.

People who use online locator services are highly likely to visit the store and make a purchase. A recent survey found that 86% of respondents who requested a map and driving directions reported actually going to the business location and 60% made a purchase. A recent Jupiter report indicates that for every dollar spent online another five dollars is spent off-line as the result of online research.

The recent Goner computer worm is an example of a "blended threat", which allows a combination of an Internet virus with the opportunity for a hacker to take over a PC. Antivirus software companies are now working closer with computer security experts to be able to respond to such blended threats, which present the opportunity for both virus infection and denial of service.

A recent report by Accenture indicates that e-tailers are doing a much better job in the fulfillment end of their businesses, including confirming orders with e-mail notices (98%), confirming stock availability (72%) and more orders arriving on time and with the correct merchandise. The flip side is that consumers are taking longer to actually place online orders because there are so many choices this year.

A recent Gartner report shows that credit card fraud is 16 times greater online than it is in a bricks and mortar operation. PayPal, a peer-to-peer payment service, claims its fraud detection software makes payment more secure than anywhere else on the Internet and for that reason it is the major payment method for EBay. All transactions happen only on the company's secure servers, which are available by personal computer, cell phone or Internet appliance.

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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