This report examines the continued growth of the Internet and the implications for online shopping. It looks in detail at the levels of Internet usage and the growth of online shopping in the US and the UK, and provides an analysis of the leading e-commerce retailers in both countries, within the context of the general retail economy.

Critical inhibiting factors affecting the market in the UK are the speed at which enabling technology gains acceptance; cost of access calls; the perceived lack of payment security associated with online transactions and the level of service online retailers can offer. This report identifies and evaluates the similarities and differences in Internet usage and online shopping in the US and UK online market, to examine how these factors will affect the development of Internet shopping in the UK. It looks at the question:

"What are the essential differences between UK and US online shopping? And what lessons can UK retailers learn from recent developments in the US online shopping experience?"

Other relevant Mintel reports include:

- Special Report, Digital TV

- Online Shopping, Retail Intelligence, June 1999

- Special Report, Home Shopping.

Definitions

The Internet is a global collection of computer networks with common addressing.

An access provider is a company that sells (or makes no charge for) Internet connections and services. Also known as Internet Access Providers (IAPs) and Internet Service Providers (ISPs).

The World Wide Web comprises graphic and text documents published on sites that are interconnected through hypertext links.

A website consists of a collection of related web pages.

A web page comprises of graphic and text in document form.

Research methodology

Trade research

In depth trade research interviews among senior executives from major online retail companies were conducted in February and March 2000. All respondents had operational or marketing responsibility. A number of trade interviews were conducted with operational executives in both the US and UK.

Abbreviations

Amex	American Express
AOL	America Online
AT&T	American Telephone & Telegraph
BCG	Boston Consulting Group
BMRB	British Market Research Bureau
BRC	British Retail Consortium
BT	British Telecom plc
BWN	Business Women's Network
CD	Compact Disc
CEO	Chief Executive Officer
CPI	Consumer Price Index
DBS	Direct Broadcast by Satellite
DPI	Disposable Personal Income
DSL	Digital Subscriber Line
DVD	Digital Versatile Disks
ERP	Enterprise Resource Planning
FES	Family Expenditure Survey
GAD	Government Actuary Department
GDP	Gross Domestic Product
GLA	Gross Leasable Area
GSM	Global System for Mobile Communications
HDTV	High Definition Television
IMRG	The Interactive Media in Retail Groups
IAP	Internet Access Providers
IMRA	International Mass Retailing Association
ISDN	Integrated Services Digital Network
ISP	Internet Service Providers
IT	Information Technology
M&S	Marks & Spencer
Mb	Megabyte
MHz	Megahertz
MMDS	Multi-channel Multi-point Distribution Service
NOP	National Opinion Polls
NRF	The National Retail Federation
OFTEL	Office of Telecommunications
ONS	Office for National Statistics
OSP	Online Service Provider
OTC	Over the Counter
PC	Personal Computer
PDI	Personal Disposable Income
PKI	Public Key Infrastructure
RPI	Retail Price Index
SET	Secure Electronic Transaction
sq ft	square foot - 1 sq ft = 9.29 sq decimetres
TGI	Target Group Index. For further details concerning this information, including data regarding readership patterns of users/purchasers and details of brands, please contact Peter Shreeve at BMRB International on 020 8566 5000.
UK	United Kingdom
US	United States
VAT	Value Added Tax
VFM	Value for Money
WAP	Wireless Application Protocol
WWW	World Wide Web

06/2000