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Chapter 3.1 “Online Shopping”. Katie Kuhn & Ty Hughes. Development of E-Commerce. The government removed most of the rules that controlled the internet E-Commerce took off shortly after E-Commerce dreamed of making online shopping attractive, but the technology wasn’t available

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Chapter 3 1 online shopping

Chapter 3.1“Online Shopping”

Katie Kuhn & Ty Hughes


Development of e commerce
Development of E-Commerce

  • The government removed most of the rules that controlled the internet

  • E-Commerce took off shortly after

  • E-Commerce dreamed of making online shopping attractive, but the technology wasn’t available

  • Yahoo! Is the best known internet portal


Effects of e commerce
Effects of E-Commerce

  • Traditional retailers are concerned because:

    • Fast Growth- profits totaled $20 billion in 1999

    • Slim Profits-Traditional businesses don’t make much profit, any business lost is devastating

    • Changing rules-Online shops are hiring staff and managers to boost business


Creation of online shopping
Creation of Online Shopping

  • In just 2000 30,000 web sites were selling items. A big boost from 1995, when nothing was bought online

  • The most successful sites have warehouses and staff


The c models
The “C Models”

  • B2B “Business to Business”

  • C2B “Consumer to Business”

  • B2C “Business To Consumer”

  • C2C “Consumer to Consumer”


Economics
Economics

  • Thought they were doing well eliminating building costs

  • Now many have bricks & mortar and clicks & and mortar to improve sales


Banking
Banking

  • In person: $1.14

  • ATM: $00.89

  • Online: $00.01

  • 36% of banks were online in 2000



Offsetting costs
Offsetting Costs

  • Equipment and software to maintain website.

  • Hire personnel who are skilled in E-Commerce.

  • Spend heavily on distribution and delivery.

  • Advertising


Reverse auctions
Reverse Auctions

  • Consumer bids on a product, and the vendor can either accept or reject it

  • Only for C2B, (Consumer to Business) and can offer a price online.


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