E-Commerce

MGMT 661 - Summer 2012Night #6, Part 2

Definition of E-Commerce:commerce that is transacted electronically,

usually over the Internet

textbook Figure 10-1

Some StatsFirst quarter 2011 e-commerce estimate increased

17.6 percent from the first quarter of 2010.

First quarter 2012 e-commerce estimate increased 15.4 percent from the first quarter of 2011.

Total retail sales increased 6.5 percent from Q1 2011 to Q1 2012.

E-commerce sales in Q1 of 2012 = $53.2 Billion

Total Retail Sales in Q1 of 2012 = $1,083 Billion

So, E-Commerce = 4.9% of sales

http://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf

What is unique about E-Commerce?Internet is ubiquitous

Internet works the same everywhere (IEEE standards)

Low market entry costs

Unique Marketing AbilitiesMulti-mediaTargeted messages to Individuals

Easy for consumers to find pricing informationmore Information Symmetry

Internet Business ModelsVirtual StorefrontInformation BrokerTransaction BrokerOnline MarketplaceService ProviderSocial Network

Google Revenue by Source

http://milehighseo.org/wp-content/uploads/2012/04/google-qtr1-fy2012-revenue.png

AdWordsAdWordsGoogle's main source of revenue

you bid on terms and then pay-per-click

whoever pays the most has their ad on top

you can use "frequency capping"

other advertising services:AdSense - buy terms on non-google.com sitesbanner ads on their content sites (eg youtube)certified Google Advertising Professionals

Important Concepts (Buzzwords)Types of E-Commerce

B2CB2BC2C

Clickstream TrackingB2B data sharing methods

Electronic Data Interchange"Public" ExchangePrivate Exchange

M-CommerceAdvantages:

even more ubiquitous B2C commerceGPS enables very targeted marketingnew digital goods, e.g. ringtones and games

Challenges:mobile devices' display and input ≠ PC screen and

keyboardeven more ubiquitous

Geek Speak TimeClient-Side Processing

JavaScript = instructions that run inside your browser

can track your mouse, read and write cookies, etc

Server-Side Processingprocesses data from your browser to create a

unique response

Next Class...Next Class...Decision Support SystemsKnowledge Management Systems

Paper Ideas from tonight:Case Study : UPS Supply Chain ServicesCase Study : Oracle Accelerate (for mid-sized

companies)

Survey of CRM systemsAdWords: selecting keywords, how much to pay