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  • E-Commerce Overview Prepared by Terry Morris Kappa Beta Delta Harper College 11/03/04
  • 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
    • 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 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.
    What is E-Commerce?
  • What is E-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.
  • Who is Online?
    • Quick Poll: Raise your hand if you regularly use the Web.
  • 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
  • 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
  • E-Commerce Benefits for Consumers
    • Convenience
    • Easier Comparison Shopping
    • Wider Selection of Goods
  • E-Commerce Risks for Consumers
    • Possible Security Issues
    • Possible Privacy Issues
    • Purchasing from photos & descriptions
    • Possible difficulty with returns
  • E-Commerce Benefits for Businesses
    • Reduced Costs
    • Increased Customer Satisfaction
    • More Effective Data Management
    • Potentially Higher Sales
  • E-Commerce Risks for Businesses
    • Need for a robust, reliable web site
    • Fraudulent transactions
    • Customer reluctance to purchase online
    • Increased competition
  • E-Commerce Business Models
    • B2C – Business-to-Consumer
    • B2B – Business-to-Business
    • C2C – Consumer-to-Consumer (eBay!)
    • B2G – Business-to-Government
  • Dept. of Commerce Census Bureau Retail E-Commerce Stats
    • Estimated Quarterly U.S. Retail E-commerce Sales: 4th Quarter 1999– 2nd Quarter 2004 (Billions of dollars)
    http://www.census. 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, 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
  • 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
  • The End
    • Interested in E-Commerce?
    • Consider enrolling in:
    • CIS 218 E-Commerce Development