• by June 6, 2001

A newly released study from ActivMedia Research finds that more than half of all profit-seeking websites are already profitable. The research, conducted this spring among 500 executives and business managers at websites around the world, finds a far better picture of online success than is generally recognized.

Among the results:

--Two out of three (66%) e-commerce businesses online today are either entirely (46%) or partially (20%) intended to be profit centers.

--The remaining one-third is divided among those that are not intended to be profit-oriented because they are dedicated to improved business operations and cost reduction (11%) or are primarily publicity vehicles (23%).

Among website executives at sites that are wholly or partially profit-seeking:

--54% of online business state they are already profitable

--Another 28% expect to become profitable by the end of 2001

As ActivMedia Research's VP of Market Research, Harry Wolhandler commented, "The Internet is undergoing a vast weeding-out. E-Survivors work the Internet as a sales channel and develop both their Internet capabilities and backstage business service capacities as much as possible to ensure their success online. Online losers try to capture markets through aggressive promotion and pricing alone. Online winners garner increasing loyalty among customers willing to pay for strong service, while the losers suffer from lack of margins that inhibit the ability to compete in the service dimension, where it really counts."