There are 196 million Internet users worldwide this year. In the United States alone, there are 80 million. By 2003, there will be more than 500 million people on the Web (according to a recent Newsweek report) around the globe. And in just the United States, Jupiter Communications predicts that more than 67 million households will be online.

Surfing the Web is no longer a pastime, it is serious business. Perhaps the fastest-growing factor of the Internet (and the one with the most impact) is e-commerce -- sales and business done online. According to the study, in 1997 global e-commerce revenue was negligible (a mere few billion dollars, at best). However, 1999 is expected to ring in e-commerce sales of up to $25 billion, and projections for the year 2003 are up to $175 billion (projected as of September 10).

A recent Internet conducted study by Ernst & Young LLP shows that the male head of household is the most frequent online buyer (49 percent), closely followed by the female head of household (39 percent). Thus, it comes as no surprise that most online buyers fall between the ages of 40 and 64 and have an annual income between $30,000 and $100,000.

What's Selling?

Who's buying what on the Web? The most common, according to an Ernst & Young study, are books and computer-related products. In fact, Amazon.com is estimated to be worth $22 billion.

The majority of those diving into retail Web sites are the retailers themselves -- Macy's, The Gap, Office Depot -- and Internet-based companies like Amazon.com and Priceline.com. Some retailers, such as Macy's, have found much of their business done on the Internet is from states in which they don't have physical stores. Many manufacturers have been leery of selling direct to consumers, understandably, for fear of irritating their retail customers. Some are finding ways around the problem by offering different or limited product lines on their sites.

Optical Forays

The optical industry has been slow to join the Internet frenzy. The main hesitation, say optical dispensers as well as manufacturers and distributors, has been in selling a medical device online.

Still, many independents are forging ahead and selling eyewear through their Web sites to customers all around the world. At Optiks, a high-end dispensary in Indiana, most of their online sales are for frames and come from out-of-town, says Pam Weddle, office manager and frame buyer.

However, many agree that it is difficult to sell the complete eyewear package online as the eyewear needs to be fitted and adjusted at the time of delivery in the dispensary. The areas of the industry that have been faster to jump on the e-commerce bandwagon are contact lenses and plano sunglasses. With its purchase of Shades.com, Sunglass Hut has begun selling direct to the consumer through this Web site, and Sterling Vision has announced its intention to offer replacement contact lenses on their previously announced interactive Web site.

Others are going to follow suit. "We intend to offer Internet reordering of contact lenses for our customers in the future," says Greg Segall, CEO of Consolidated Vision Group, the parent company of Texas State Optical and America's Best Contacts and Eyeglasses.

For those wary of the complications of launching their own Web sites but who are still anxious to start selling online, there are now some options. A few companies (such as EyeWeb and Optical Options) have recently launched programs complete with a digital imaging system that scan the consumer's face and download it onto the dispenser's Web site. Once the patient has left the office they can then shop for frames from their own home and see how styles look on their face.

The benefits of this type of system include a reduction in the amount of inventory a dispenser must carry.

"Where is the industry going if we keep having so much inventory?" asks Wayne McGee, CEO of the McGee Group, a distributor of several frame lines. McGee is also launching a system late this year for dispensers to sell and order eyewear online. "If all this Internet connection happens within the next few years for our industry, it will mean that the doctor doesn't need to see salespeople anymore," he says. "And they will have to hire buyers who are savvy on the Net."

In the meantime, many independents, chains, and manufacturers are launching online sites for primarily marketing purposes. Dispensers can announce promotions and exclusives, chains can portray their brand image and manufacturers can market their lines. And some are even dabbling in sales.

"We do make some sales online now, but we do not discount," says Norman Childs, owner of the two-store Eyetique in Pittsburgh. "That is important to us."

Business-To-Business

Another area generating interest in optical is the business-to-business sector. They offer dispensers one-stop shopping for a variety of products and services. An example of this trend is E-Dr. Network (www.e-dr.com), a virtual buying group for practitioners from the same company that runs the HMI and OPN buying groups. Doctors must fill out an online form that qualifies and registers them to buy products and services online -- such as contact lenses, frames, lenses, cases, sunglasses, as well as place an order through optical labs. "There is no cost to the doctor and they can do their ordering anytime," says Denise Humphreys, marketing director.

Optical Auctions also offers a similar service, but through live, online auctions of ophthalmic equipment and supplies. Opticalauctions.com provides open bidding for a pre-determined amount of time for each of its products.

While the growth of e-commerce is moving at breakneck speed, the optical industry is being much more cautious. How will our industry tackle the Web? And how will it look in five or 10 years?

Perhaps everything will be done online: The doctor will perform the eye exam and the patient will head home to choose their frames on the dispenser's Web site. The dispensary will not have to stock any frames or lenses, as everything can be ordered online from their manufacturers once the customer makes their choice. Dispensaries won't even handle contact lenses or plano sunwear, as these items can be found on the Internet. And everyone can take long lunches and four-day weekends. Fact or fantasy? Only time -- virtual time, that is -- will tell. EB