E-COMMERCE :
SESSION 2
R-EVOLUTION IS BEGINNING

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© 2014 Pearson Education

9-1

THE INTERNET: CHANGING THE
FACE OF BUSINESS
• Successful companies embrace the Internet as a mechanism for transforming their companies and for changing everything about the way they do business.
• Business basics still apply online.
• In the world of e-commerce, company size matters less than speed and flexibility.

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© 2014 Pearson Education

9-2

THE INTERNET: CHANGING THE
FACE OF BUSINESS
• Study: By 2014, online sales and Internet activity will account for or influence 53% of total retail sales in the U.S.
• Neilsen study: 84% of the world’s online population has used the Internet to make a purchase. • Items purchased most often online include books, clothing/accessories/shoes, airline tickets, electronic equipment, and hotels.
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© 2014 Pearson Education

9-3

BENEFITS OF SELLING ON THE
In addition to the text
WEB
• Opportunity to increase revenues and profits
• Ability to expand into global markets
• Ability to remain open 24 hours a day, seven days a week
• Capacity to use the Web’s interactive nature to enhance customer service
• Power to educate and inform

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© 2014 Pearson Education

9-4

BENEFITS OF SELLING ON THE
In addition to the text
WEB
(continued)

• Ability to lower the cost of doing business
• Ability to spot new business opportunities and capitalize on them
• Ability to grow faster
• Power to track sales results
►Conversion rate – the percentage of customers to a Web site who actually make a purchase.

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© 2014 Pearson Education

9-5
9-5

E-COMMERCE
• Surveys show:

►64% of small business owners in the U.S. have a Web site. ( 19% in France)
►But 65% do not engage in ecommerce because their Web sites cannot accept payments. • Barriers:

►Not knowing how or where to start
►Cost and time concerns
►Fear that customers will not use a web site
►Problems with online security

Copyright

© 2014 Pearson Education

9-6

LES