One in every two households in Bermuda now has access to the Internet through a home computer and more than half of these web surfers have made at least one online purchase of goods or services within the last year.

And this boom appears to be reducing the amount of mail order shopping carried out by residents.

The news came yesterday as part of a Bermuda Omnibus Survey for the fourth quarter of 1999 into Internet shopping and mail order shopping.

The survey noted: "Internet access continues to grow in Bermuda, presenting residents with increased communications and purchasing options.'' But it added: "As consumers increase their use of Internet shopping, it appears they are relying less on overseas purchasing by mail.'' Fifty-one percent of homes in Bermuda have access to the Internet through a home computer and this represents a 16 percent increase in home penetration over the past nine months.

Use of the Internet increases with income and decreases with age and the most common uses of the Internet are now e-mail and information services. But 57 percent of consumers with home Internet access have made at least one purchase of services or goods online during the last 12 months and this figure is up 17 points from the figure recorded in December, 1998.

Most consumers have made between one and six purchases with the average being 4.5.

Three in ten residents reported purchasing goods and services more than ten times last year and the survey found that residents most likely to purchase the most goods and services online include higher income households, males and people between 35 and 54 years of age.

Hot purchases over the Internet are books, clothing, computer software or hardware and music. Growth in this area is expected to continue, according to the survey.

It stated: "Internet purchasing can be expected to continue to grow in the next year. Close to three-quarters of home Internet users say they are very or somewhat likely to make such purchases over the coming year, up from 63 percent who made such a forecast one year ago.'' Only 23 percent of those polled said they were unlikely to purchase goods or services over the Internet and the predominant reason given for not doing so continues to be that they do not want to provide credit card information over the Internet.

50 percent of households made `at least one mail order purchase' However the number of people who feel this way is down by six percent to 40 percent of the people polled. Those who feel strongest about this are black residents and those between the age of 35 and 54. Other key reasons for not shopping via the Internet in the next year include security/confidentiality and a preference to see what they are buying.

Meanwhile half of Bermuda's households made at least one mail order purchase in the past year and while this is consistent with the figure recorded in 1998, the average number of purchases have declined from five to three. Males, younger residents and those in higher income households are most likely to have made the greatest number of mail purchases in the past year. But the survey also notes that while the average number of purchases have declined year-over-year, consumers are spending more on each purchase.

"Half of those who have made mail order purchases report to have spent more than $500 in the past 12 months, with the average total expenditure for mail order purchases being $1,510, up from $1,117 in 1998.'' Those aged 18-34, white residents, and those with higher household income, spent the most on mail order purchases. The number of people concerned about giving out credit card information for overseas mail order purchases has decreased over the past year by 12 percent to 39 percent of those polled.

Residents with lower household incomes expressed the greatest concern over giving out credit card numbers.

CHART Frequency of Purchasing Goods ervices over the Internet Internet Purchases