Business Services Industry

Instil sees great potential in UK e-commerce market

Internet Business News, April, 2000

Forty percent of people in the UK with Internet access have purchased goods online but the potential for future growth is still immense, according to e-business consultancy and software firm Instil.

However, security clearly remains a concern for many consumers, with only 25% of respondents believing that purchasing goods or services over the Internet was as reliable as using the telephone. Indeed, even amongst those with Internet access, 45% believe that buying goods over the telephone is more reliable than buying online.

One aspect of Internet shopping gaining more popularity is online auctions, according to Instil, and the increasing range of goods and services offered for auction is further widening their appeal. Moreover, 65% of respondents said they would like to use an online auction service in the future to sell unwanted items such as electrical goods and cars.

Finally, Instil is urging traditional retailers to establish an online presence and maximise the strength of their existing brands. Almost two thirds (61%) of respondents in the survey said that they trust existing 'bricks and mortar' retailers more than their 'dot.com' competitors and companies who do not make the most of this advantage will miss out to those that do.

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