1Terry Morris, Ed.D.

E-COMMERCE OVERVIEW

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E-Commerce Overview

AgendaDescribe E-CommerceDemographics and Statistics

Who’s online? Who’s buying online?

Benefits and Risks of E-CommerceE-Commerce Business ModelsE-Commerce Retail Sales StatisticsE-Commerce Growth

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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?

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What is E-Commerce?

You may have thought about…

Shopping onlinePurchasing onlineSelling or bidding on eBayPaying bills onlineBanking online

E-Commerce provides these functions and many more.

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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.

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Who is Online?

If you are like most U.S. adults, you are regularly online and use the Web.

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Who is Online?Per Pew Internet & American Life Project,

May 2010 Survey

Internet Users:Wide range of ages, ethnicity, and income79% of Adult Women79% of Adult Men95% of age 18-2987% of age 30-49

More statistics:http://www.pewinternet.org/Static-Pages/Trend-Data/Whos-Online.aspx

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Who is Buying Online?Have you shopped or made a purchase

online?

In 2010, 52% of U.S. adults bought products like books, music, toys or clothing online.

http://www.pewinternet.org/Reports/2010/Online-Product-Research/Findings/Online-commercial-activity-has-steadily-risen-on-several-fronts.aspx

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E-Commerce Benefits for Consumers

ConvenienceEasier Comparison ShoppingWider Selection of Goods

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E-Commerce Risksfor Consumers

Possible Security IssuesPossible Privacy IssuesPurchasing from photos &

descriptionsPossible difficulty with returns

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E-Commerce Benefits for Businesses

Reduced CostsIncreased Customer SatisfactionMore Effective Data ManagementPotentially Higher Sales

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E-Commerce Risksfor Businesses

Need for a robust, reliable web siteFraudulent transactionsCustomer reluctance to purchase

onlineIncreased competition

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E-Commerce Business Models

B2C – Business-to-ConsumerB2B – Business-to-BusinessC2C – 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/retail/

E-Commerce Growth

http://techcrunch.com/2010/03/08/forrester-forecast-online-retail-sales-will-grow-to-250-billion-by-2014/

Forrester Research: Online Retail Sales Will Grow To $250 Billion By 2014

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The Influence of the Web on Commerce

Forrester Predicts Growth in Web-influenced Sales

http://techcrunch.com/2010/03/08/forrester-forecast-online-retail-sales-will-grow-to-250-billion-by-2014/

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E-Commerce GrowthMore consumers moving from dial up to broadband

connectionsRetailers improving their coordination between online

and in-store operationsSales are shifting away from storesMobile CommerceSocial CommerceDaily Deal Websites (http://groupon.com)

http://blogs.wsj.com/digits/2010/03/08/e-commerce-growth-slows-but-still-out-paces-retail/

http://www.sescommerce.com/ecommerce-growth.asp

http://www.emarketer.com/Report.aspx?code=emarketer_2000770

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The EndInterested in E-Commerce?

Consider enrolling in:

WEB 240 E-Commerce Development