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trends in e-commerce with a focus on small medium enterprises.

2. E-Commerce. Leveraging the Internet and World Wide Web to generate revenue. . 3. Big Picture. . MarketIntermediaries. Supply of Information. Demand for Information. . . . . . 4. E-Commerce Business Model. Online firms make money in these ways-CommerceDigital products (e.g. software, music)Non-digital products (e.g. book, clothing)AdvertisingBanner, text ads, rich mediaFeesAffiliate fees/commission.

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trends in e-commerce with a focus on small medium enterprises.

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    1. 1 Trends in E-Commercewith a focus on small & medium enterprises. Sandeep Krishnamurthy, Ph.D. Associate Professor of E-Commerce & Marketing University of Washington http://faculty.washington.edu/sandeep sandeep@u.washington.edu

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    3. 3 Big Picture

    4. 4 E-Commerce Business Model Online firms make money in these ways- Commerce Digital products (e.g. software, music) Non-digital products (e.g. book, clothing) Advertising Banner, text ads, rich media Fees Affiliate fees/commission

    5. 5 Trend # 1- E-commerce is Doing Well. Business-to-Consumer electronic commerce is growing. But, the growth rate has gone down. There is considerable potential for growth. Key players have shifted from a retailer business model to a platform model.

    6. 6 US E-Commerce Trend(Source: Forrester Research)

    7. 7 Amazon + eBay, Revenue Trend(in thousands, USD)

    8. 8 Amazon + eBay, Indexed(2002 q1 indexed as 100)

    9. 9 Trend # 2- The Web is now Worldwide After all these years, the World Wide Web is living up to its name. The World Wide Web is now a dynamic global communication platform. New patterns of trading. Buyers/Sellers from around the world. New patterns of communication.

    10. 10 Global Picture

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    13. 13 Amazon.com’s International SalesAs a Percent of Total Sales

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    15. 15 eBay’s International SalesAs a Percent of Total Sales

    16. 16 Baidu.com vs. Google.com

    17. 17 Trend # 3- Advertising is growing faster than commerce. Online advertising is replacing commerce as the killer business model. As content grows, advertising grows. Search dominating online advertising with 40% of revenue.

    18. 18 Online advertising growth trend(source: iab.net, figures in millions)

    19. 19 (Google+Yahoo) vs. (Amazon+eBay)

    20. 20 Advertising vs. Commerce Commerce is a seasonal business. Tends to peak in Q4 of each year due to holiday shopping. Advertising is not seasonal. Advertising requires low infrastructure. Advertising is a low risk option for a publisher. Commerce still requires non-trivial infrastructure.

    21. 21 Trend # 4- User-generated Content Top blog on the Internet (Xu Jinglei)

    22. 22 User-generated content popular everywhere.

    23. 23 Wikipedia, Blogger,Youtube

    24. 24 Youtube vs. Amazon(reach)

    25. 25 Youtube vs. Amazon(page views)

    26. 26 Youtube vs. eBay(reach)

    27. 27 Youtube vs. eBay(page views)

    28. 28 Trend # 5- Emergence of Global Sourcing Platforms. Global Sourcing Platforms help small and medium enterprises find buyers for their products. Two prime examples Alibaba.com Globalsources.com

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    33. 33 How can a Small and Medium EnterpriseBenefit From E-Commerce? Commerce Selling direct (risky) Selling through a platform (preferred) Amazon.com, eBay.com, Yahoo.com Alibaba.com, Globalsources.com Advertising Google’s AdSense, Yahoo, MSN/Live.com Affiliate Amazon.com’s Affiliate Program

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