 E-commerce involves business activities, including the exchange of
goods services, and information, completed electronically via the
Internet.
 A click-only business completes almost all of its activities through the
Internet.
 A brick-and-mortar business completes most of its activities by
means other than the internet. They rely on actual buildings and/or
retail stores.
 A brick-and-click business is a company that combines traditional
business operations with the use of the Internet.
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 Stages of development
 Information stage – the business’s website just provides information to
prospective customers.
 Interaction stage – the website begins to offer a method of interaction
with customers, usually via e-mail.
 Full integration stage – the website will allow customers to get all the
information needed to select, order, pay for, track, and if needed, return
their purchases. Example: Amazon.com
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 Instant communication with computers, and wireless devices.
 Instant research information for the business.
 Open for business 365 days a year, 24 hours a day.
 Development of new products. Example: The E-ticket for concerts
and airlines.
 Ease of competition and entering of new markets.
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Average Cost Savings for Businesses when Customers Use the
Internet to Make Purchases
Product
Computer software
Savings
99%
Banking services
Airline tickets
Stocks
89%
87%
78%
Books
Toys and gifts
56%
48%
 Customers might not know exactly
what they are getting.
 Difficult to return purchases.
 Lack of personal interaction.
 Difficult to predict demand due to the
constant change in consumer
behavior.
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 The internet was first developed in the 1950’s as a military and
research tool.
 E-commerce did not begin until 1991 with the introduction of the
World Wide Web.
 Approximately one billion people around the world can access the
internet.
 The United States has 211 million users, or 21%, of the world’s
internet users. This has decreased from 50% ten years ago.
 China’s internet users have tripled in 4 years, but still reaches only
10% of the population.
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The
development of
the personal
computer in the
late 1970’s
eventually
allowed for the
development of
e-commerce. Bill
Gates is credited
with creating the
software
needed for
operating
millions of
personal
computers.
But … who actually CREATED the first real
personal computer??
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Steve Wozniak (along with Steve Jobs) is credited with creating the FIRST
personal computer marketed to average consumers.
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Countries with the highest
number of internet users as of
December 2019 (in millions)
https://www.statista.com/statistics/2
62966/number-of-internet-users-inselected-countries/
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 B2C (business-to-consumer) Internet sales in the U.S. were $110
billion in 2006, and growing by 24% per year.
 B2B (business-to-business) Internet sales for 2007 were $800 billion.
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 Efficient communication … e-mail, chat rooms, blogs, webcams, and
webinars.
 Gathering information about customers, including mailing addresses
and feedback about products.
 Improving operations by allowing salespeople to access inventory
records and track shipments. Also allows small businesses to sell
products almost anywhere in the world
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 Virtual marketing is the completion of marketing activities primarily
through the use of computer and internet technologies.
 A product fulfillment center provides some or all of the activities
required to fill customer needs.
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 More companies are using the Internet for advertising, from $2 billion
in 1998 to $9.7 billion in 2007.
 A pop-up is an advertisement that opens in a new window when a
web page is being viewed.
 Rich media includes a variety of digital technologies that provide
interactive multimedia experiences for users.
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 Web sponsorship – a bank might sponsor a website that helps
consumers understand how to purchase a car using installment
credit.
 Priority placement – most search engines allow companies to pay to
have their web site appear at the top of the list when the search
results are show.
 Business blogs are regularly updated on-line journals written by
company experts.
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 A marketing strategy that encourages people to pass along a
marketing message.
 Successful viral marketing depends on a high pass-along rate
from person to person.
The pass-along rate is usually
dependent upon the uniqueness
or humor of the ad.
 Viral marketing can utilize social
networking sites such as
Facebook, MySpace, and
YouTube as well as e-mail, text
messaging, and instant
messaging.

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
Hint … his company is
the king of viral
marketing!
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Type
Shopping online
Shopping in stores
Shopping with catalogs
% satisfied
73%
60%
56%
 Close-up images of products
 Information on product availability
 Product comparison guides
 An easy-to-use search function
 Toll-free customer service number
 Consumer reviews and product evaluations
 An easy-to-use “shopping cart” and check out feature
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