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Consumer To Business E-Commerce Presentation

Consumer To Business E-Commerce Presentation. You’re Just a Few Clicks Away. ...From Consumer Bliss. Joe Statum III Stacy Kelley Jim Hughes MS480 - 2003. Overview. What and Who is Business-to-Consumer E-commerce? How Big is It, Where is it Headed? Demographics Tax Implications

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Consumer To Business E-Commerce Presentation

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  1. Consumer To Business E-Commerce Presentation You’re Just a Few Clicks Away... ...From Consumer Bliss Joe Statum III Stacy Kelley Jim Hughes MS480 - 2003

  2. Overview • What and Who is Business-to-Consumer E-commerce? • How Big is It, Where is it Headed? • Demographics • Tax Implications • Security & Impact of September 11 • What has it Done for You Lately?

  3. Quiz Questions • What/who is quixtar.com • Country with Highest percentage of at-home internet use • On-Line Industry Hardest hit by Attacks of September 11

  4. What is Business-to-Consumer E-commerce? • Business-to-Consumer E-commerce could be defined as transactions and interactions between consumers and businesses where some part of the exchanges are conducted over the internet. In the broadest terms...

  5. Who Makes up the Business-to-Consumer E-Commerce Market Segment?

  6. eBay (ebay.com) Amazon.com (amazon.com) Dell (dell.com) Buy.com (buy.com) Egghead.com (egghead.com) Gateway (gateway.com) Quixtar (quixtar.com) uBid (ubid.com) Barnes & Noble (bn.com) Cyberian Outpost (outpost.com) Top 20 Internet Retailers

  7. Top 20 Internet Retailers* (continued) • Value America (va.com) • MicroWarehouse (microwarehouse.com) • Office Depot (officedepot.com & vikingop.com) • eToys.com (etoys.com & babycenter.com) • Lands’ End (landsend.com) • The Spiegel Group (spiegel.com, eddiebauer.com, & newport-news.com) • Fingerhut (fingerhut.com, andysauctions.com, & andysgarage.com) • CDW (cdw.com) • JCPenney (jcpenney.com) • Gap (gap.com) *Internet.com (9/25/01)

  8. How the Internet is used for Shopping

  9. How Big is Business-to-Consumer E-commerce? • Worldwide, GarterG2 expects 2001 online holiday shopping sales to reach $25.3 billion this year, a 39 percent increase over last year, despite an uncertain economic climate. • In the US, more than 106 million people will shop online in December, and they will spend a record $9.9 billion during the holiday season, an increase over last year's $6.9 billion, according to Nielsen//NetRatings and Harris Interactive.

  10. Where has it been and…? Forrester Online Retail Index http://www.forrester.com/NRF/1,2873,0,00.html

  11. …. Where is it headed? • Projected Worldwide E-Commerce Growth* http://www.forrester.com/ER/Press/ForrFind/0,1768,0,00.html *Both B2B and B2C

  12. E-Commerce Sales • US retail E-commerce sales for the second quarter of 2001 were $7.5 billion • An increase of 24.7% from the second quarter of 2000 • Total retail sales increased 3.8% from the second quarter of 2000

  13. What Makes up the Business-to-Consumer Market Segment in US • Top Online Spending Categories November and December 2001 Online Spending(in millions) Category Estimated Apparel $2,445 Books/Music/Video $1,696 Auctions $1,364 Toys $1,053 Computer Hardware $973 Source: Nielsen/NetRatings and Harris

  14. US E-Commerce Retail Quarterly Results

  15. Total Spent on US On-Line Retail Sales-June, July, August & September (1000s)

  16. Retail Sales Graphic Comparison (June, July, August & September) 1000s

  17. Size of Business-to-Consumer Market Segment Worldwide Worldwide Internet Retailing Sales ForecastEstimate for Fourth Quarter 2001 Billions of U.S. Dollars) • Notes: Figures in millions and exclude travel-related purchases and movie and event ticket sales. Source: GartnerG2

  18. Worldwide Internet Retailing Sales ForecastEstimate for Fourth Quarter 2001 Billions of U.S. Dollars) • Notes: Figures in millions and exclude travel-related purchases and movie and event ticket sales. Source: GartnerG2

  19. Demographics

  20. Demographics • In US there are over 168 million Internet Users • Expanding online population is an opportunity and threat to E-commerce vendors

  21. World’s Online Population

  22. World’s Home Online PopulationTop 30 Countries

  23. World’s Home Online PopulationTop 30 Countries cont.

  24. World’s Online Gender Distribution

  25. Race Does Matter US Department of Commerce found: A child in a low-income White family is three times more likely to have web access than a low-income Black child and four times more likely than a low-income Hispanic family

  26. Race (cont.)

  27. The average online household annual income is 50% higher than average nonuser Income

  28. Age • 65% of those under age 30 have internet access. • Age 18 to 30 age group is the most active online users. • By 2004 almost 91% of this group will be online

  29. Age –The Senior Years • 87% of those 65 and over do not have internet access • Seniors that are active on the Internet spend more time online • Adults 55 and older represent the fastest growing group of Internet users • Ages 45-64 years old is one of the most desired Internet markets

  30. Internet Tax Freedom Act • Internet Tax Freedom Act- passed by Congress October 1998 • Establishes a moratorium on direct and indirect state or local taxes on the Internet or interactive computer services or the use of those services.

  31. State Revenues that could be generated from an Internet tax • This year State and local governments will lose $13.3 billion • An estimated $45.2 billion loss in annual revenue in 2006 and $54.8 billion by 2011

  32. Reasons for Internet Tax • Toll on State Revenue • Government should not be in position of creating incentives to buy online • Uneven Playing Field for Offline retailers • E-commerce has advanced • Based on what you buy not where you buy

  33. Other Interesting FactsAbout E-Commerce Sales • Average amount spent per person • June: $247.00 • July: $270.00 • August: $273.00 • September: $262.00 • Number of households shopping on-line • June: 13.1 million • July: 14.7 million • August: 14.8 million • September: 15.2 million

  34. September 11 and Security

  35. September 11, 2001Impact on Business-to-Consumer E-Commerce Sales

  36. News Traffic vs. E-Commerce • Visitors to news sites • 1 week prior to attacks: 6 million daily • 1 week after attacks: 11.7 million daily • ABCNews.com- 360% daily increase in daily visitors to news site • Sales volume before and after attack • Immediately following attack-complete halt • As of 9/24/01-97% of normal sales volume

  37. Top News Sites in Wake of September 11 Attacks • CNN.com • MSNBC.com • ABC News • CBS.com sites • NYtimes.com • WashingtonPost.com • Slate.com • USAToday.com

  38. For E-Commerce: A return to Normalcy! • Week ending 10/21/01: Internet sales 7% below average week observed during the 5 months prior to the September 11th attacks. • Entirely attributable to the continued softness in one area…………..

  39. Hardest Hit: Travel Sector Travel Sector Sales remain approximately 17% Below Pre-Attack Levels

  40. Travel Sector News • Priceline.com expected $341 million 2001 revenues - changed to $280-$300 million. • Expedia.com-travel bookings had declined 60-65% as of 9/19/01. • Travelocity-travel bookings had declined approximately 50% as of 9/19/01.

  41. Analysts’ Predictions • 2001 Online Travel Industry forecast lowered to 25% growth from 35-40% previous to attacks. • 2002 forecast lowered to 15-20% growth from 25-30% previous to attacks.

  42. Security of E-Commerce KPMG surveyed 1250 Large Companies In 12 Countries* • When a security breach occurred 83% reported no legal action was pursued because: • Inadequate Legal Remedies Available • Loss Not Quantifiable • No possibility of recovery • Lack of evidence • Other reasons * KPMG 2001 Global e.fr@ud Survey

  43. Security of E-Commerce KPMG surveyed Large Companies In 12 Countries* • Less than 35 % had security audits performed on their e-commerce systems • Only 12% reported their web site bears a seal identifying their web site has passed a security audit. • 88% reported the public perceives the “brick and mortar” businesses to be were more secure and less prone to fraud than e-commerce dot.com companies, yet only 9% reported a security breach had occurred in the last 12 month. (There is evidence these events are under reported.) • National and Geographic Boundaries are non-existent in e-commerce - Security related risks affect businesses in all regions * KPMG 2001 Global e.fr@ud Survey

  44. What has it Done for You Lately? • Demonstrations • Lands’ End / Virtual Model • Staples • E-bay

  45. landsend.commyvirtualmodel.com

  46. Lands’ End Summary • Revenues $1.5 Billion • Income $52.8 Million • % Margin 3.30% • Model Direct Merchant • Employees 4,700 • $/Associate $319,150

  47. staples.com

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