INSM 180 Bryant Stratton College Belasco. Electronic Commerce Buying and Selling of Goods over the Internet.

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Presentation transcript:

INSM 180 Bryant Stratton College Belasco

Electronic Commerce Buying and Selling of Goods over the Internet

Started with the introduction of the Internet Sales really began to take off in 1991

$48.2 Billion in the 3 rd Quarter

Amazon and Ebay were among the first American Internet retailers Top 5: Amazon Dell Office Depot Staples HP Most popular categories of online sales: Music Books Computers Office Supplies Other Consumer Electronics

Founded in 1994 by Jeff Bezos out of Seattle, WA. One of the first American companies to sell products online Had it’s first profitable year in 2003 Originally called cadabra.com Company was one of the first to host affiliate websites and now receives about 40% of its profit from other third-party sellers and affiliates

Company was launched in 1994 as a static Web page (Web 1.0) By the end of 1997 it was the first online company to record a million dollars in sales Was one of the first companies that used only online sales without a middleman venue Customers can browse and control 50% of sales comes from website 2007 Ranked 34 in the Fortune 500 List

Timeline 1979: Michael Aldrich invented online shopping [2]Michael Aldrichonline shopping [2] 1994: Netscape releases the Navigator browser in October under the code name Mozilla. Pizza Hut offers online ordering on its Web page. The first online bank opens. Attempts to offer flower delivery and magazine subscriptions online. Adult materials also become commercially available, as do cars and bikes. Netscape 1.0 is introduced in late 1994 SSLencryption that made transactions secure.NetscapeMozillaPizza HutAdultNetscapeSSL 1995: Jeff Bezos launches Amazon.com and the first commercial-free 24 hour, internet-only radio stations, Radio HK and NetRadio start broadcasting. Dell and Cisco begin to aggressively use Internet for commercial transactions. eBay is founded by computer programmer Pierre Omidyar as AuctionWeb.Amazon.comNetRadioDellCiscoeBay 1998: Electronic postal stamps can be purchased and downloaded for printing from the Web.Electronic postal stamps 1999: Business.com sold for US $7.5 million to eCompanies, which was purchased in 1997 for US $149,000. The peer-to-peer filesharing software Napster launches. ATG Storeslaunches to sell decorative items for the home online.Business.comNapsterATG Stores 2000: The dot-com bust.dot-com bust 2001: Alibaba.com achieved profitability in December 2001.Alibaba.com 2002: eBay acquires PayPal for $1.5 billion. [3] Niche retail companies Wayfair and NetShops are founded with the concept of selling products through several targeted domains, rather than a central portal.eBayPayPal [3]WayfairNetShops 2003: Amazon.com posts first yearly profit.Amazon.com 2009: Zappos.com acquired by Amazon.com for $928 million.Zappos.comAmazon.com 2010: Groupon reportedly rejects a $6 billion offer from Google. Instead, the group buying websites plans to go ahead with an IPO in mid [8]GrouponGoogle [8] 2011: US eCommerce and Online Retail sales projected to reach $197 billion, an increase of 12 percent over [9] Quidsi.com, parent company of Diapers.com, acquired byAmazon.com for $500 million in cash plus $45 million in debt and other obligations. [10] GSI Commerce, a company specializing in creating, developing and running online shopping sites for brick and mortar businesses, acquired by eBay for $2.4 billion [9]Diapers.comAmazon.com [10]GSI Commercebrick and mortar businesseseBay

Goods and services can be purchased at any time of the day or night. Costs associated with owning and operating a retail outlet are eliminated. Reduced inventory

Goods are not delivered immediately Cannot physically examine or “try on” product Security of online payments

Business-to-Consumer (B2C): Sale of a product or service to the general public or end users. Manufacturers sell directly to customers. Retail stores might also have online sites to sell directly to customers. Consumer-to-Consumer (C2C): Individuals selling to other individuals. Electronic versions of classified ads or online auctions Business-to-Business (B2B): Sales of products or services from one business to another. Typically manufacturer-supplier relationship.

Online Banking Online Stock Trading Online Shopping

Auction House sites Person-to-person auction sites Auctions.overstock.com