E-Commerce: The Revolution

1
E-Commerce The Revolution

• Chapter 1
• Electronic Commerce Course
• BADM 561, Dr. Cara Peters

2
Definitions

• E-commerce digitally enabled commercial
  transactions
• Using the Web Internet to transact business
• More of a marketing function
• Not to be confused with internal transactions
• Management information systems function
• What the book defines as E-business

3
The Reinvention of E-Commerce

• 1995-2000 , Innovation
• Digitize business on the web
• Weak business models
• Liquidity bubble
• 2001-2008, Consolidation
• Honed business models, 25 growth per year
• Success of social networking services

4
Where is E-Commerce Today

• Trends in 2008-2009
• New business models based off social technologies
• Web 2.0
• Growth in search engine marketing advertising
• Retail ecommerce grows in double digit rates
• Online population slows but average purchase
  expands
• Fastest growth in teen, tween and older shoppers

5
Ecommerce today (cont.)

• Revolution in telecommunications, print media,
  real estate, hotels, bill payments
• Entrepreneurs flood the net, riding on
  infrastructures of Amazon, eBay and Google
• Large companies continue to improve
  multi-channel, bricks clicks models
• Growth in B2B supply chain use of the web

6
Online Retailing2008 120 million Americans
will spend 265 on Internet products services
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Lands End

• Opened in 1963 as the Lands End Yacht Stores
• Averaged 15 mail orders per day
• Bought by Sears in 2002 for 1.9 billion
• 2005, Fifteenth largest mail order firm
• Annual sales of over 1.3 billion
• Target quality-conscious, middle-age consumers
  with traditional casual apparel

8
Lands End

• Direct marketing
• Multi-channel merchant
• Catalogs, stores, and website
• 269 million catalogs mailed in 2001
• 16 outlet and inlet stores in three countries
• Website online in 1995, initially offering 100
  products
• Today, every product in catalog sold online

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Lands End

• 15 million web site visitors (1999)
• 61 million in revenue
• Considered worlds largest apparel website
• Known for customer service
• First firm with 24/7 order taking 800 number
• Lands End Live (talk with personal shopper)

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Lands End

• Website has full set of features
• Lands End My Personal Shopper (live chat)
• Online style advice
• Swim suit fitting
• Three-dimensional model
• Build an oxford shirt

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Lands End

• Online orders filled through catalog warehouse
• Size of 16 football fields
• Sort 10,000 pieces per hour
• Ship 150,000 orders per day
• Using a multi-channel model resulting in seamless
  customer experience

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Different from Traditional Formats

• Ubiquity (anywhere/anytime)
• Global Reach (no boundaries)
• Universal Standards (common standards)
• Richness (video/audio/text)

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Different from Traditional Formats

• Interactivity (technology interacts with user)
• Information Density (reduces information
  cost/raises quality)
• Customization (personal messages on mass level)
• Social Technology (content generation/social
  networks)

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Ubiquity
15
Global Reach
16
Universal Standards
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Richness
18
Interactivity
19
Information Density
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Personalization
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User Generated Content
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The Impact of Social Networking Technology

• Take My Survey!

23
Online Dating Industry

• 516 million in revenues (2005)
• Over 850 online dating services
• 59 of daters find it difficult to meet someone
  new
• Most likely place to meet people
• Work (22), Internet (18), Bars (18), Clubs
  (11)
• Downsides stigma anonymity (married)

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Key Players

• Match.com
• Yahoo! Personals
• eHarmony
• Lavalife
• Traditional dating firms
• Its Just Lunch
• Social networking communities

25
Match.com

• Conceived in 1993
• Owned by Interactive Corporation
• Ticketmaster
• Worlds largest online dating firm
• 900,000 paying subscribers
• 12 million profiles posted
• January (2004), 29.6 million unique visitors

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Match.com

• Partnered with several firms
• America Online Microsofts MSN
• Subscriptions as low as 12.99 per month
• New services include
• video, off line speed dating, friend list, travel
  site, MatchLive off line events

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Types of E-Commerce

• B2C Amazon.com
• B2B Farmers Market/Food Coop
• C2C Craigslist.com
• P2P Bit Torrent
• M-Commerce -- Safira