October 3, 2002, 12:00 AM

Sales via kiosk will reach $3 billion in 2006, says Jupiter

Unless it’s on paper, kiosks don’t deliver the goods. But kiosk-influenced sales will soar to $48.7 billion in 2006 as shoppers use them for research and payment.

Kiosks across all industry sectors will drive more than $3 billion in sales in 2006, but retail operations that deal in physical goods rather than more easily deliverable tickets or coupons still find developing kiosks to be a challenge, according to recent findings from Jupiter Research Inc. As result, some are pulling back on earlier, more costly investment plans to opt for less pricey solutions, says Jupiter.

“Simple, lower-cost terminals, which are essentially PCs that connect to companies’ web sites, can save over $10,000 per unit and can also cut costs of developing new interfaces,” says Jupiter analyst Dylan Brooks. But while transactions at kiosks may grow slowly, kiosk installations will find much greater retail application in customer service and research, Jupiter says. Kiosk-influenced commerce will reach an estimated $48.7 billion in 2006, towering over sales completed through kiosks.

The categories of ticketing, books, video and music together account for about 40% of kiosk sales today, but that percentage will drop in the future as toys, consumer electronics and other industries make greater use of kiosks for research, fulfillment and payment. Among offline kiosks, imaging is one of the largest commerce categories and Jupiter believes it could become a contender in web-enabled kiosks as well.

“Once connected to services such as AOL Time Warner’s You’ve Got Pictures, imaging kiosks will at last tap some of the revenue potential of consumers’ online picture vaults,” says Brooks.


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