Digital River 2001 Annual Report Download - page 14

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Lawrence R oberts, credited as one of the Internet’s founders, has
examined its growth since its origination.Through his studies, he
has seen peaks and valleys in Internet use, but over time, one
thing remains constant: Internet traffic is growing, and it’s growing
very rapidly.
Along with more traffic comes more online shoppers, a study by
the Pew Internet and American Life Project confirms. This
increase was most evident in the 2001 holiday online shopping
season when, according to the study, 29 million U.S. Internet
users bought holiday gifts online in November and December
2001, compared to 20 million users in 2000, with an average
order size increasing to $392 compared to $330 in 2000.
The largest revenue growth is expected within the business-to-
business (B2B) market, with the worldwide value of goods and
services purchased by businesses increasing from $282 billion in
2000 to $4.3 trillion by 2005, according to a study by
International Data Corp. U.S. businesses will represent the largest
segment of these shoppers, with their online purchases expected to
increase at an annual rate of 68 percent from 2001 to 2005.
To help our clients maximize this growth, Digital R iver offers
numerous traffic and revenue-generating services. Our B2B
services include techniques to encourage targeted users to accept
new, online processes. For the business-to-consumer (B2C)
segment, we offer creative ways to entice users to shop online,
such as permission-based e-mail marketing.When customers are
online, we employ purchasing techniques such as site merchandising
to make it easy for them to shop and buy, and 24x7 on- and
off-line customer service to answer customers’ questions.
The rising tide of the Internet
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