E-Commerce Update

The following items reflect continued growth in e-commerce activity and the importance of the Internet in our daily lives.

• The Pew Internet and American Life Project is in the middle of a long-term study of how the Internet is affecting the lives of Americans. Almost 60% of the 2,000 people questioned by the project team last fall said that they used the Internet regularly. Almost 4 out of 5 expect a business to have a Web site that will provide information about products and services. Barry Wellman, a University of Toronto professor and co-author of a book about the role of the Internet in daily life told CBS Marketwatch that "Even 5 years ago, the Internet was seen as very special, a privileged and very unique thing. Now, it is routinely accepted."

• ComScore Networks reports that online consumer sales totaled about $74 billion for 2002, up nearly 40% from 2001. Among U.S. Internet users, 53% believe the Internet is the easiest or most convenient way to shop, and 64% believe that Internet shopping is a real time saver.

• Consumers with higher incomes are more likely than other Internet users to use a comparison shopping site. According to ComScore, about 2.6 million Internet shoppers logged on to a comparison shopping site during November 2002. Users with household incomes less than $25,000 are least likely to visit such sites, while users with incomes of $75,000 or more are most likely to use them. The three most popular sites were Dealtime.com, BizRate.com and Nextag.com.