E-Trade(Commerce)

By: Basel Risha

E-Trade

• Electronic Trade is exchange of business information using electronic data interchange (EDI), e-mail, electronic billboards, fax, and electronic money transfers.

• Internet shopping, online stock and bond, the downloading and selling of “soft goods” (software, documents, graphics, music, etc.), and business-to-business transactions.

• e-commerce is all about using the Internet to do business better and faster.

Consum

ers Business

es

E-Trade

Pros For Consumers• Price

• Quick and easy

• In depth product overviews

• *Consumer reviews (Less biased opinions)

• Find products online that you can't find at a local, real world store

• Doors are always open to customers, 24 hours a day, 7 days a week

• (store employees)

Cons For Consumer• Unable to test products personally

• New way for cyber-criminals to steal personal, financial info, and even your identity

• Product Overload

• *Don’t always know what your getting

• Shipping delay (purchases and returns)

• Slower product verification and problem resolution

• Loss of emotional fulfillment

Pros For Businesses• Increased market share (Global)

• Provide for niche markets

• Operation costs

• Increased productivity

• Survey of customers

• Less likely to make returns

Cons For Businesses

• Elimination of face to face interaction

• Competition (prices down=profit margin down)

• 24/7 (updating, responding, etc.)

E-Shopping Tips

• Personal recommendations- Friends or Co-workers who have online shopping experiences to share

• Use consumer reviews and internet to get informed

• Bizrate.com, amazon.com, etc.

Question

• Total e-commerce sales for 2007 were estimated at $136.4 billion, an increase of 19.0 percent (±2.8%) from 2006.

• While, Total retail sales in 2007 increased only 4.0 percent (±0.3%) from 2006.

- What do you feel is causing consumers to turn to the Internet?

Question

- Have you ever contacted an online customer service representative regarding a product you have purchased? How come? If so, how did you and what was your experience like?

Question

• How do you determine where you purchase an item from online?

- (best price, security, recommendations, site design, brand, etc. ?)