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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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