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| From ZD Net news 9/8/99 |
Traditional brick and mortar retailers will begin to feel the bite from e-commerce soon, according to new research from Jupiter Communications.
The New York-based research firm today predicted that less than 10 percent of e-commerce revenue in 2002 will be from incremental sales. That means that the bulk of the growth in e-commerce will come from sales that would have otherwise taken place offline.
"With a few notable exceptions, traditional merchants' Internet strategies have been paralysed by indecision, and the merchants continue to watch Web upstarts seize the early momentum," Jupiter analyst Ken Cassar said.
Of the US$11.9 billion in on-line commerce Jupiter is predicting for 1999, only US$720 million, or six percent, will come from sales that would not have otherwise taken place.
Cassar said companies need to accept the Internet as another channel for their business or risk losing sales to competitors. "Merchants must accept that cannibalised sales are better than lost sales," he said.