DUKE-Fuqua School of Business:   56 Percent of US Firms to Sell Online by 2000

56 percent of US companies will sell their products online by 2000, up from 24 percent in 1998, according to a survey by the Financial Executives Institute and Duke University. The report estimates that online business will account for an average of 8 percent of a company's total revenue. In 1998 online sales represented 5 percent of overall revenue.

The study calculated that in 1998, high-tech firms generated 6.5 percent of their total revenue from online sales. This is expected to increase to 11.1 percent by next year. In contrast, communications and media companies will generate 6 percent of their revenue from the Net in 2000, while businesses in the Pacific region will generate 7.5 percent of their business from online sales.

The companies surveyed also expect to increase their online spending, with two thirds expecting to buy online in 2000, double the figure that purchased online in 1998. The survey found that, on average, executives expect their companies to make 7.9 percent of their supply purchases online. High-tech companies expect to make 10.2 percent of such purchases online.

The findings of the Financial Executives Institute/Duke University Corporate Outlook Survey are based on a survey of 371 US companies, taken from a base of 3,000 US companies. It was conducted during the week of March 15, 1999.