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    The Past, Present and Future of E-Commerce

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    aarti
    E-commerce has evolved from businesses using private networks in the 1970s to share information, to the emergence of online retail in the mid-1990s pioneered by companies like Amazon and CDNow. While online retail sales were only $700 million in 1996, they grew exponentially to an estimated $20 billion by 1999. The document predicts that e-commerce revenues in areas like online retail, travel, and business services will continue growing significantly in the early 2000s, though challenges like high rates of abandoned online shopping carts remain.

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    The Past, Present and Future of E-Commerce

    Uploaded by

    aarti
    105 views16 pages
    E-commerce has evolved from businesses using private networks in the 1970s to share information, to the emergence of online retail in the mid-1990s pioneered by companies like Amazon and CDNow. While online retail sales were only $700 million in 1996, they grew exponentially to an estimated $20 billion by 1999. The document predicts that e-commerce revenues in areas like online retail, travel, and business services will continue growing significantly in the early 2000s, though challenges like high rates of abandoned online shopping carts remain.

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    E-commerce has evolved from businesses using private networks in the 1970s to share information, to the emergence of online retail in the mid-1990s pioneered by companies like Amazon and CDNow. While online retail sales were only $700 million in 1996, they grew exponentially to an estimated $20 billion by 1999. The document predicts that e-commerce revenues in areas like online retail, travel, and business services will continue growing significantly in the early 2000s, though challenges like high rates of abandoned online shopping carts remain.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    105 views16 pages

    The Past, Present and Future of E-Commerce

    Uploaded by

    aarti
    E-commerce has evolved from businesses using private networks in the 1970s to share information, to the emergence of online retail in the mid-1990s pioneered by companies like Amazon and CDNow. While online retail sales were only $700 million in 1996, they grew exponentially to an estimated $20 billion by 1999. The document predicts that e-commerce revenues in areas like online retail, travel, and business services will continue growing significantly in the early 2000s, though challenges like high rates of abandoned online shopping carts remain.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 16

    The Past, Present and Future of ECommerce

    Marketing 932
    E-Commerce
    09-05-00

    Charles Heath,

    History of E-Commerce
    Background
    E-commerce actually began in the 1970s when larger
    corporations started creating private networks to share
    information with business partners and suppliers.
    This process, called Electronic Data Interchange (EDI),
    transmitted standardized data that streamlined the
    procurement process between businesses, so that paperwork
    and human intervention were nearly eliminated.
    EDI is still in place, and is so effective at reducing costs and
    improving efficiency that an estimated 95% of Fortune
    1,000 companies use it.
    09-05-00

    Charles Heath,

    History of E-Commerce
    Prodigy was running text
    ads and selling flowers in
    the early '80s
    The first documented
    Online sale in 1994 was
    what?
    A CD

    09-05-00

    Charles Heath,

    History of E-Commerce
    Online retailing began four years ago, and was pioneered
    largely by Internet companies that didn't (and some still
    don't) perform traditional retail, such as Amazon.com and
    CDNow.
    More recently, brand names like Barnes and Noble, the Gap,
    and Wal-Mart have set up shop on the Net, and many
    experts believe that these and other brand names will be
    able to establish long-lasting presences on the Web.
    Today, all a person needs is a computer, a browser, and
    Internet access, and he or she can buy flowers, airline
    tickets, and even a car. Tomorrow. who knows. The sky's the
    limit.
    09-05-00

    Charles Heath,

    History of E-Commerce: Amazon.com


    Early in 1994, working for D.E. Shaw in New York City, Jeff
    Bezos, a restless, 30-year-old hedge fund manager began
    researching the commercial possibilities of the Net.
    A year later, Bezos drove west, raising venture funds for a
    new small online book shop (originally called Cadabra.com),
    to be launched from his garage in Bellevue, Wash.
    Running on a Website and a warehouse, by its third year
    Bezos's precocious Amazon.com toppled $150 million in
    annual sales a milestone that Wal-Mart founder Sam
    Walton needed 12 years (and 78 stores) to reach.

    09-05-00

    Charles Heath,

    History of E-Commerce: Stocks


    Electronic stock trading debuted 30 years ago with Instinet,
    Reuters' computer network that allowed after-hours trading.
    Charles Schwab first offered a dial-up trading service called The
    Equalizer in 1985.
    E*Trade founded in 1982 as an institutional trading service began
    offering consumer trading in 1992 through America Online and
    CompuServe.

    True Web-based trading arrived in 1994 with Chicago-based


    NET Investor, which offered 15-minute delayed quotes and
    charged $35 per trade.
    Ameritrade, Datek Online, and others followed, eventually
    driving commissions to as low as $8 per trade, and forcing
    the implementation of free, real-time stock quotes in 1998.
    09-05-00

    Charles Heath,

    History of E-Commerce: Ads


    In 1994, the first national consumer brand site www.zima.com - was launched for the Coor's owned
    beverage Zima.
    In October of that year, Wired magazine's HotWired (now
    part of Lycos-owned Wired Digital), dished up the first
    banner ads from 12 advertisers, including AT&T, Club
    Med, and Volvo.
    Sales for the entire online ad industry were $1 million that
    year, and HotWired owned 40 percent of it.
    In 1998, online ad revenues reached $2 billion, topping
    the $1.6 billion spent on "outside" ads, such as billboards.
    General Motors alone pumped in $12.7 million. Online ad
    revenue is expected to reach $11.5 billion by 2003 5
    percent of the total U.S. ad market.
    09-05-00

    Charles Heath,

    History of E-Commerce: Travel


    Booking a trip over the Web back in 1995 meant
    going to a travel site and requesting a fare.
    In early 1997, Travelocity offered a paging service to
    its Web customers that alerted them if their flight
    was delayed.
    In the fall of 1997, Priceline.com launched its
    innovative, bid-based market for discount airfares.
    Today you can bid on empty seats, name your price,
    choose a seat from a diagram, and know of fare
    bargains often before agents have that information.
    09-05-00

    Charles Heath,

    History of E-Commerce
    Web retail sales have jumped from a mere $700
    million annually in 1996 to an estimated $20
    billion in 1999, according to Forrester

    $20B
    1996

    1999

    $700M
    09-05-00

    Charles Heath,

    Global E-Commerce
    among Internet users around the globe, 10 percent
    shop online during a month.
    In addition, 15 percent of users say they have
    considered shopping online, but have not yet done
    so.

    09-05-00

    Charles Heath,

    E-Commerce Today
    Some major product categories have paved the way:
    travel services ($5.95 billion in 1999 sales),
    computer hardware and software ($5.8 billion),
    books ($1.7 billion),
    gifts and flowers ($730 million),
    music ($540 million), and
    apparel and footwear ($460 million),
    (eMarketer in Business 2.0 Jan 2000).

    09-05-00

    Charles Heath,

    E-Commerce Services Today


    In 1999, the online market size for business services
    was estimated at $22 billion.
    Primary service categories include

    financial ($7.3 billion, 1999),


    professional ($4.4 billion),
    administrative support ($3.9 billion),
    corporate travel ($5 billion), and
    telecommunications ($1.5 billion).

    By 2003, Forrester Research predicts that online


    services will represent nearly 8 percent of the overall
    sector hardly a drop in the bucket.
    09-05-00

    Charles Heath,

    Movers in E-Commerce 2000


    The study found that office supplies showed the
    greatest increase in online sales in July, to
    $150 million from $110 million in June. Other
    categories reporting gains included videos,
    footwear and apparel, sporting goods,
    appliances and furniture.
    Computer hardware showed the largest
    decrease for big-ticket items, to $377 million in
    July from $424 million in June
    09-05-00

    Charles Heath,

    Future of E-Commerce
    eMarketer, an Internet technology (IT) research and
    reporting firm, estimates that the dollar figure for ecommerce will rise from approximately U.S. $18 billion in
    1998 to U.S. $294 billion in 2002.
    $184 billion by 2004. (Forrester, Business 2.0 Jan 2000)
    In Europe, consumers' internet purchases will jump from
    2.9 billion in 1999 to 174 billion in 2005.
    By 2006, US Government Will Collect $602 Billion Over
    The Net
    Online business-to-business e-commerce is projected to
    speed past $1 trillion in annual revenue by 2003
    09-05-00

    Charles Heath,

    Future Trends to Watch in E-Commerce


    Women take control. Women make or influence 80 percent
    of household sales in the United States, according to
    WomanTrend, despite the fact that they make up 51 percent
    of the population.
    The untapped get tapped. Two highly touted markets $509
    million health and beauty, and $513 million grocery still lag
    behind expectations.
    More "click and mortar." Traditional retailers Circuit City,
    Crate and Barrel, Sears, Toys R Us, Wal-Mart, and Federated
    Department Stores missed the boat in 1995 and 1996, but rest
    assured they "get it" now, and are attempting re-entry, this
    time around with more money and smarts. Watch out.
    09-05-00

    Charles Heath,

    Still a Long Way To Go


    Andersen Consulting and Forrester Research both
    show shopping cart abandonment rates of 25%.
    E-commerce still accounts for less than 1% of total
    retail sales
    Pure plays are struggling to maintain cash flow and
    are either:
    Folding
    Cutting back
    Being bought at cheap prices
    09-05-00

    Charles Heath,

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