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E-Commerce Overview

Prepared by Terry Morris Kappa Beta Delta Harper College 11/03/04
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E-Commerce Overview  Agenda   Describe E-Commerce Demographics and Statistics • Who’s online? • Who’s buying online?     Benefits and Risks of E-Commerce E-Commerce Business Models E-Commerce Retail Sales Statistics E-Commerce Growth 2 .

What is E-Commerce?  Take a few moments and jot down some phrases that come to mind when you think about e-commerce… What does e-commerce mean to you?  3 .

What is E-Commerce?        You may have thought about… Shopping online Purchasing online Selling or bidding on eBay Paying bills online Banking online E-Commerce provides these functions and many more. 4 .

 Major functions of E-Commerce include:    the buying of goods. and security technologies to allow individuals and organizations to exchange information related to the sale of goods and services. the selling of goods.What is E-Commerce?  Here is a formal definition… The integration of communications. and performance of financial transactions on the Internet. data management. 5 .

6 .Who is Online?  Quick Poll: Raise your hand if you regularly use the Web.

org/trends/DemographicsofInternetUsers. May-June 2004 Tracking Survey      Wide range of ages. and income 61% of Women 66% of Men 78% of age 18-29 74% of age 30-49  More statistics: http://www.pewinternet.Who is Online?  Per Pew Internet & American Life Project. ethnicity.htm 7 .

8 .Who Is Buying Online?  Quick Poll: Raise your hand if you have shopped or purchased online in the last year.

org/trends/UsageOverTime.xls .http://www.pewinternet.

E-Commerce Benefits for Consumers  Convenience  Easier Comparison Shopping  Wider Selection of Goods 10 .

E-Commerce Risks for Consumers  Possible Security Issues  Possible Privacy Issues  Purchasing from photos & descriptions  Possible difficulty with returns 11 .

E-Commerce Benefits for Businesses  Reduced Costs  Increased Customer Satisfaction  More Effective Data Management  Potentially Higher Sales 12 .

E-Commerce Risks for Businesses  Need for a robust. reliable web site  Fraudulent transactions  Customer reluctance to purchase online  Increased competition 13 .

E-Commerce Business Models – Business-to-Consumer  B2B – Business-to-Business  C2C – Consumer-to-Consumer (eBay!)  B2G – Business-to-Government  B2C 14 .

Retail E-commerce Sales: 4th Quarter 1999– 2nd Quarter 2004 (Billions of dollars) http://www.census. of Commerce Census Bureau Retail E-Commerce Stats  Estimated Quarterly U.S.Dept.gov/mrts/www/current.html .

E-Commerce Statistics Source:Forrester Research as reported on http://www.nua.com/surveys/ .

E-Commerce Projected Sales   What’s next? Forrester Predicts: $230 Billion In 2008 “As online shopping attracts new consumers and entices existing shoppers to buy more.00. or 10% of total US retail sales. US online retail sales will reach nearly $230 billion in 2008.1317.com/ER/Research/Brief/Excerpt/0.17217.html 17 .” http://www.forrester.

jhtml?articleID=29116903 18 .Reasons for Growth  More consumers moving from dial up to broadband connections Retailers improving their coordination between online and in-store operations M-Commerce (mobile / wireless)   http://www.com/showArticle.internetweek.

The End   Interested in E-Commerce? Consider enrolling in: CIS 218 E-Commerce Development 19 .