The position of the online stores Q2. 2003 (Summary for the press)
2003. 11. 17.
The results are above expectations
Quarter yearly the GKIeNET Internet Research and Consulting Ltd. together with T-Mobile Hungary and Sun Microsystems Hungary estimate the development of the domestic electronic economy and information society. In this summary we conclude the results of the survey focused on online shops.
- As compared to the expectations at the beginning of the last year the online shops realised only 6 Billion Forints instead of the planned 7,5 Billion Forints in 2003. A remarkable proportion of this turnover was made at the time of the Christmas shopping in November and December.
- In 2004 according to the expectations the net income from sales and the number of online shopping is growing by 40%. The turnover of the online shops can step across the threshold at 10 Billion Forints and the number of online shopping can reach 700 thousand.
- In spite of the dynamic growth the turnover of the B2C sector in Hungary makes only 1,5 thousands of the all turnover of the retailers.
By the analysis of the online shops we noticed that the webshops with more than 1000 visitors give more than 80% of the total turnover in 2003. This dominance expectedly won’t change in 2004.
The avarage value of the e-shopping was 11.300 Forints. The customers of the online shopping probably decide by the aspect of economy of size. Under a certain value they simply don’t order products via the internet, because of the cost of shipment. This threshold is going to decrease expectedly thanks to the rising of the internet shopping culture. At the same time only 2 visitors from the 100 used online shopping.
In the cases of online shopping the costumers mostly paid by cash or by cheque. According to the responds of the owner of the online shops the costumers paid by cash in 60% of the transactions last year.
By the turnover 82% of the income received by postal or cash charging forward. At the more valuable cases (above 40.000 Forints) the most often used paying method was the online payment and the less valuable products (under 10.000 Forints) was paid by cash in the most cases.
In 2003 1,6% of the incoming orders were false. This low proportion can be explained by the efficiency of the advanced filter methods which are the following: asking e-mail at the registration process, asking phone number, asking personal data and the confirmation of order by telephone.
There is a close correlation between the year of establisment and the number of visitors. The longest the e-shop operating, the more visiting and site downloading can experienced. The same relationship can be seen at the cases of the range of the traded product category and the number of products together with the number of visitors and number of downloading.
In the course of the survey with the help of the domestic online search engine, we managed to shed light on the list of the shops dealing with e-commerce that make possible to order a product or service online. By the result of the survey in the first quarter of 2004 we asked 400 online shop to fill out our questionnaire by e-mail. We got back 60 that was filled out. Sometimes the owners had got more than one shop. In these cases the questionnaires aggregate the answers. As a result of it we analysed the present tendency and the possible future expectations based on approximately 80 online shops.
GKIeNET Ltd. – T-Mobile Plc.. – Sun Microsystems Hungary Ltd.