9 Chapter E-Commerce: Digital Markets, Digital Goods

Photobucket: The New Face of E-commerce Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods

Electronic Commerce and the Internet Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Figure 9-1 Retail e-commerce revenues have grown exponentially since 1995 and have only recently “slowed” to a very rapid 25 percent annual increase, which is projected to remain the same until 2010. The Growth of E-Commerce

Electronic Commerce and the Internet Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Figure 9-2 The typical distribution channel has several intermediary layers, each of which adds to the final cost of a product, such as a sweater. Removing layers lowers the final cost to the consumer. The Benefits of Disintermediation to the Consumer

Electronic Commerce and the Internet Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Toyota set up a MySpace profile for the Yaris to attract the attention of young buyers and gather marketing data.

Electronic Commerce and the Internet Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Figure 9-3 E-commerce Web sites have tools to track a shopper’s every step through an online store. Close examination of customer behavior at a Web site selling women’s clothing shows what the store might learn at each step and what actions it could take to increase sales. Web Site Visitor Tracking

Electronic Commerce and the Internet Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Figure 9-4 Firms can create unique personalized Web pages that display content or ads for products or services of special interest to individual users, improving the customer experience and creating additional value. Web Site Personalization

Electronic Commerce and the Internet Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Stonyfield Farms’ Baby Babble blog provides a channel for the company to talk to customers with young children directly and hear back from them.

Electronic Commerce Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Figure 9-5 Companies use EDI to automate transactions for B2B e-commerce and continuous inventory replenishment. Suppliers can automatically send data about shipments to purchasing firms. The purchasing firms can use EDI to provide production and inventory requirements and payment data to suppliers. Electronic Data Interchange (EDI)

Electronic Commerce Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Figure 9-6 A private industrial network, also known as a private exchange, links a firm to its suppliers, distributors, and other key business partners for efficient supply chain management and other collaborative commerce activities. A Private Industrial Network

Electronic Commerce Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Figure 9-7 Net marketplaces are online marketplaces where multiple buyers can purchase from multiple sellers. A Net Marketplace

Electronic Commerce Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Figure 9-8 M-commerce sales represent a small fraction of total e-commerce sales, but that percentage is steadily growing. (Totals for 2007–2008 are estimated.) Global M-commerce Revenue 2000-2009