Ecommerce: Small buys are adding up big

What do ringtones, magazine articles, videogames, digital music downloads and online garage sales in common? They often feature items that cost under $5.00, and they collectively add up to a multi-billion dollar business. In fact, the Gartner Group predicts that micro-commerce opportunities for new products and services will generate $60 billion in revenue per year by 2015–and that eBay and Craigslist may be the main delivery systems for these sales (Steve Rubel, you’re brilliant).

Some stats:

  • Mobile games will grow to a $3 billion market by 2006, according to In-Stat/MDR.
  • In 2003, cellular ring-tones made more than $3.5 billion in 2003, according to the ARC Advisory Group.
  • Digital music downloads will reach $3.2 billion in revenue by 2008, according to Forrester.
  • 14 million Americans age 12 and older digital content for less than $2 in the past year, according to Ipsos-Insight.
  • 37 million Americans would use their credit, debit or charge cards for purchases of $5 or less, according to Matt Kleinschmit, research director at Ipsos-Insight.

(Via Ecommerce News)