BUSINESSWEEK ONLINE:   Business Week ebiz




DATA MINE Sept. 29, 1999

Web Sites Profit from Experience
E-commerce Web sites may be more profitable than they appear -- especially if they're focused on trade between businesses instead of sales to consumers. The key is experience, according to a new study by ActivMedia of 200 business-to-business Web sites. Operators of some 42% of these sites that have been online for three years or more said they're profitable. On average, they posted $30 million in annual sales.

For sites in operation a year or less, only 27% were profitable -- not surprising, since on average they took in only $94,000. Overall, 34% of sites reported earning a profit, and 18% more expected to do so within 12 months. Like other market researchers, ActivMedia expects business-to-business commerce to far surpass consumer commerce in coming years.


Business-to-business Web-site profitability
  All sites 1 year 2 years 3+ years
Profitable now 34% 27% 32% 42%
Profitable within 12 months 18% 27% 15% 14%
DATA: ActivMedia Research LLC
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


MORE NUGGETS
The Net Gets Electrified
Natural gas and electricity are ripe for Net trading systems

Untapped Giving
50 million U.S. Internet users contribute to social causes the old-fashioned way

Japanese Women Alter the Face of E-tailing
Women in Japan are changing priorities on the Net

The Devil is in the Details
Companies still need to learn the ropes of logistics

Floyd Floods The Net
Top weather sites saw a rise in key measurements like audience size and page views

The Mother Lode
Collected nuggets from Data Mine



Copyright 2000, by The McGraw-Hill Companies Inc. All rights reserved.
Terms of Use   Privacy Policy