Online Shopping Group Members: George Harris DaVid Robinson Binh Dao Kwadwo Kwakwa Alex Covrljan Tim Connolly.

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Presentation transcript:

Online Shopping Group Members: George Harris DaVid Robinson Binh Dao Kwadwo Kwakwa Alex Covrljan Tim Connolly

What is Online Shopping? The online selling of or enabling the sale of products or services to consumers.

How did Online Shopping come about? Online shopping emerged with the development of the internet. Entrepreneurs saw the potential in online shopping and sprung at the chance to make virtual storefronts, so that consumers could shop without leaving their homes.

Growth of Online Shopping There are over 70,000 new websites put on the internet every hour. Internet traffic is doubling every three months. Projected annual internet commerce revenue has grown from $35 billion in 1998 to $1.4 – $3.2 trillion in (Taken from CISCO Systems WEB Site)

Risks & Disadvantages of Online Shopping Fraud- Do you know the Company? Security- Is your credit card safe? Privacy- Is your information being sold? Shipping- Are you getting the correct product at the requested time? Difficulty- Do you know how to shop online?

Consumer Benefits Convenience -Geographic -Store hours -Ease of transaction -Quick and efficient shopping process Information -Quick location of items -Easy price/attribute comparisons

Firm Benefits Less dependence on intermediaries -Geographic distribution -Holdup -Time to delivery Marketing -Target marketing -Direct customer relationships -Customer service

Online Shopping VS. Traditional Shopping Differences -Cannot try or test product before purchase. -Minimum human interaction if any. -Cannot pay by cash. -Shop anytime online.

Online Shopping VS. Traditional Shopping Similarities -Advertisement. -Security. -Convenience.

2005 expected pattern of electronic shopping users

Key Findings of Michael De Kare-Silver in e-shock: Already about 15-20% of consumers say theyd prefer to shop electronically rather than visiting the shops. It only takes a drop of about 15% in store traffic to make many stores unprofitable. This revolution will achieve critical mass as early as Manufactures can seize the opportunity to decide whether to establish their own direct consumer distribution and bypass existing retail chains.