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1
Terry Morris, Ed.D.
E-COMMERCE
OVERVIEW
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
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?
4
What is E-Commerce?
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.
5
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.
6
Who is Online?
If you are like most U.S. adults, you are
regularly online and use the Web.
7
Who is Online?
Per Pew Internet & American Life Project,
May 2010 Survey
Internet Users:
Wide range of ages, ethnicity, and income
79% of Adult Women
79% of Adult Men
95% of age 18-29
87% of age 30-49
More statistics:
http://www.pewinternet.org/Static-Pages/Trend-Da
8
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-Res
9
E-Commerce
Benefits for Consumers
Convenience
Easier Comparison Shopping
Wider Selection of Goods
10
E-Commerce Risks
for Consumers
Possible Security Issues
Possible Privacy Issues
Purchasing from photos &
descriptions
Possible difficulty with returns
11
E-Commerce Benefits
for Businesses
Reduced Costs
Increased Customer Satisfaction
More Effective Data Management
Potentially Higher Sales
12
E-Commerce Risks
for Businesses
Need for a robust, reliable web site
Fraudulent transactions
Customer reluctance to purchase
online
Increased competition
13
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)
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
16
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/
17
E-Commerce Growth
More consumers moving from dial up to broadband
connections
Retailers improving their coordination between online
and in-store operations
Sales are shifting away from stores
Mobile Commerce
Social Commerce
Daily 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
18
The End
Interested in E-Commerce?
Consider enrolling in:
WEB 240 E-Commerce Development

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