Internet malls, also known as hub sites, will increase in size, number and marketing clout over the next several years and by the year 2002, will funnel $18.8 billion, or 40%, of total consumer e-commerce dollars . according to a new report released by eMarketer (www.emarketer.com)
Currently, 15% of total consumer online sales revenues are now captured within the confines of hub sites. The report indicates that while total revenues captured within the hub environment will balloon from $1.1 billion in 1998 to over $18 billion in the year 2002, the referral fees and commissions earned by these firms will, as a percentage of the total, shrink from 8% on average in 1998, down to 4.9% by the year 2002.
“This is not the age of dis-intermediation, but of hyper-intermediation,” says Geoffrey Ramsey, eMarketer’s Statsmaster, in a statement.. “Aggregators add value to the online purchasing experience by offering unprecedented levels of customer choice, service and convenience.”
