1 E-Commerce Overview Prepared by Terry Morris Kappa Beta Delta Harper College 11/03/04

2 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

3 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?

4 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?

5 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.

6 Who is Online? Quick Poll: Raise your hand if you regularly use the Web.

7 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 % of age More statistics:

8 Who Is Buying Online? Quick Poll: Raise your hand if you have shopped or purchased online in the last year.

10 E-Commerce Benefits for Consumers Convenience Easier Comparison Shopping Wider Selection of Goods

11 E-Commerce Risks for Consumers Possible Security Issues Possible Privacy Issues Purchasing from photos & descriptions Possible difficulty with returns

12 E-Commerce Benefits for Businesses Reduced Costs Increased Customer Satisfaction More Effective Data Management Potentially Higher Sales

13 E-Commerce Risks for Businesses Need for a robust, reliable web site Fraudulent transactions Customer reluctance to purchase online Increased competition

14 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)

E-Commerce Statistics Source:Forrester Research as reported on

17 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.”

18 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)

19 The End Interested in E-Commerce? Consider enrolling in: CIS 218 E-Commerce Development