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Brick-and-Mortar Companies Will Increase Spending on E-Commerce in 2001

Press release from the issuing company

Greensboro, N.C., - Brick-and-mortar companies apparently are ignoring the well-publicized problems of pure-play e-commerce sites and are investing heavily in e-commerce initiatives of their own, according to a survey of more than 250 U.S. companies released in the current issue of eCommerce Business magazine, published today. Companies ranging from small businesses to major enterprises plan to increase their investments in e-commerce in 2001, according to the survey. Among companies surveyed who currently engage in or plan to engage in e-commerce, 80% said they plan to increase their e-commerce spending next year. A total of 16% planned to maintain investments at this year's levels, while 4% planned to decrease spending on e-commerce. Nearly half, 46%, plan to increase their investment in e-commerce by 15% or more, and 36% plan to increase spending by 20% or more. "Increased sales" were seen as the primary benefit of e-commerce by the vast majority of respondents, with 74% citing this factor. Another 14% cited "procurement savings" as the primary e-commerce benefit. A total of 33% of companies with annual sales of more than $500 million planned to invest $10 million or more in e-commerce next year, up from 25% who invested that much or more in 2000. Among companies with sales of less than $500 million, 26% planned to invest $1 million or more, up from 16% in 2000.