Online Shopping

1
Online Shopping

• Team Members
• Sivakumar Chandrasekaran
• Sujatha Chellathurai
• Eric Christensen
• Sharon Derbyshire

• Gary Hedden
• Tamara MacDonald
• Ryan Meister
• Patrick Schweri
• Alex Thompson

2
Presentation Outline

• History of Online Shopping
• Advantages Vs Disadvantages
• Products Online
• Travel
• Food
• Automobiles
• Conclusions

3
History of Online Shopping

• 1993 WWW release sparks retailer interest
• 1994 - 95 Web browsers enhanced
• 1995 Businesses begin campaigns
• 1997 E-Commerce takes off
• 2000 Estimated 7.6 of retail sales from Internet

4
Source ABCNEWS.com/Ernst Young LLP
5
Advantages to Shopping Online

• Convenience
• Comparative Shopping
• Greater Product Options
• Greater Amount of Product Information
• Tax Free Purchases (while it lasts)

6
Disadvantages to Shopping Online

• Not Always Practical
• Shipping (added costs, hassles with returns)
• Different Approach to Customer Service
• Threat of Fraud or Customer Information Theft

7
Travel

• Sales
• 3 billion 1998
• 29 billion 2003
• Online providers
• Expedia - highly rated
• Priceline - discount

• Products/services
• flight information
• destinations
• times
• fare comparisons
• hotel information
• car rental
• maps
• vacation packages
• weather links

8
Travel

• Pros
• extensive hotel information
• online hotel room reservation
• wide range of vacation package choices

• Cons
• difficult to search
• lack customer focus
• not equipped for e-commerce
• reservation systems not web compatible

9
Food

• Sales
• 150 billion 2003

• Products
• groceries
• services
• meals
• ready-to-make
• meals
• ready-to-eat

10
Food (Groceries)

• Online providers
• Peapod.com
• HomeGrocer.com
• Webvan.com
• Shoplink.com
• Streamline.com
• HomeRuns.com

• pioneer 1990
• West Coast (going national)
• Boston area

11
Food (Meals)

• Online providers
• Ready-to-make
• Cookexpress.com
• packaging considerations

• Ready-to-eat
• Food.com
• Waiter.com
• viability once more restaurant chains come online

12
Food

• Pros
• CONVENIENCE
• novelty

• Cons
• limited to metropolitan areas
• difficulty navigating websites
• scheduling deliveries
• monthly fees/delivery costs

13
Automobiles

• Sales
• 2 million consumers researched purchase online
  1998
  
• 8 million consumers researched purchase online
  2003
  
• 1/2 million new cars purchased entirely online

• Products
• new cars
• new car guides
• used car pricing
• classifieds
• auctions
• buying tips
• financial resources
• loan quotes, rates, insurance

14
Automobiles

• Online auto purchasing providers
• Autoweb.com, Autobytel.com, Microsoft
  Carpoint.com
  
• Saturns iShowroom
• Yahoo!.Autos

• auto finder service
• create your own
• new car guides, used car pricing, classifieds,
  auctions, buying tips

15
Automobiles

• Pros
• selection
• convenience
• easy comparison shopping
• Saturns money back guarantee

• Cons
• Saturn only direct order new car provider

16
Conclusion

• Travel
• lack of customer focus has hurt commerce
• most consumers use sites as informational
• Food
• focus on high density populated areas has limited
  overall sales volume

17
Conclusion

• Automobiles
• few online create your own new car options
• most web services still require use of
  traditional dealership for transaction
  
• most consumers use sites as informational

18
Conclusion

• 17 million people made 6 purchases in 1998
  (280)
  
• 39 million consumers made 13 online purchases in
  1999 (1,205)
  
• E-commerce still in infancy
• Tremendous growth potential
• Pros still outweigh cons in many cases
• Web still used primarily for research purposes