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E-Commerce Overview

Prepared by Terry Morris

Kappa Beta DeltaHarper 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

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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?

What isE-Commerce?

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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.

What isE-Commerce?

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What isE-Commerce?

Here is a formal definition…

The integration of communications, data management, and security technologies to allow individuals and organizations to exchange information related to the sale of goods and services.

Major functions of E-Commerce include: the buying of goods, the selling of goods, and performance of financial transactions on the Internet.

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Who is Online?

Quick Poll:

Raise your hand if you regularly use the Web.

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Who is Online?

Per Pew Internet & American Life Project, May-June 2004 Tracking Survey

Wide range of ages, ethnicity, and income 61% of Women 66% of Men 78% of age 18-29 74% of age 30-49

More statistics: http://www.pewinternet.org/trends/DemographicsofInternetUsers.htm

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Who Is Buying Online?

Quick Poll:

Raise your hand if you have shopped or purchased online in the last year.

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

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E-Commerce Benefits for Consumers

Convenience Easier Comparison Shopping Wider Selection of Goods

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E-Commerce Risksfor Consumers

Possible Security Issues Possible Privacy Issues Purchasing from photos &

descriptions Possible difficulty with returns

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E-Commerce Benefits for Businesses

Reduced Costs Increased Customer Satisfaction More Effective Data Management Potentially Higher Sales

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E-Commerce Risksfor Businesses

Need for a robust, reliable web site Fraudulent transactions Customer reluctance to purchase

online Increased competition

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E-CommerceBusiness Models

B2C – Business-to-Consumer B2B – Business-to-Business C2C – Consumer-to-Consumer (eBay!) B2G – Business-to-Government

Dept. of CommerceCensus Bureau

Retail E-Commerce Stats

http://www.census.gov/mrts/www/current.html

Estimated Quarterly U.S. Retail E-commerce Sales:4th Quarter 1999– 2nd Quarter 2004 (Billions of dollars)

E-CommerceStatistics

Source:Forrester Research as reported on http://www.nua.com/surveys/

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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, US online retail sales will reach nearly $230 billion in 2008, or 10% of total US retail sales.”

http://www.forrester.com/ER/Research/Brief/Excerpt/0,1317,17217,00.html

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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.internetweek.com/showArticle.jhtml?articleID=29116903

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The End Interested in E-Commerce?

Consider enrolling in:

CIS 218 E-Commerce Development