E-commerce and Website Development: Hype … and Reality

Ka-Neng AuRutgers University

30 March 2002

Introduction

National IT policyInvestment in network infrastructureEmphasis on human resource development for IT

E-commerce hype …

E-commerce is profitable …Shopping is easy …E-commerce is secure …M-commerce is the future …

E-commerce is profitable …

$32.6 billion in 2001 U.S. sales+19.3 % annual growthall retail sales only + 3.0 %

… but only for the few

Only 1% of retail sales

High cost of acquiring new customersLow click-through rate for banner adsInefficient supply chain management

Successful strategies

“bricks and clicks”Online partnershipsTechnology upgrades

Shopping is easy …

just point and click

… but paying is hard

Forms, forms, formsPrivacy concernsSecurity fearsShipping costs

Successful strategy: Digital wallets

Acceptable to buyers and sellersEasy to understand and useLow overhead per transactionSecure and resistant to fraud

E-commerce is secure …

… for consumers

… but not for merchants

Break-insDistributed denial of serviceE-mail bombing

Necessary strategies

Firewalls to restrict accessFrequent password changesRe-routing of network trafficRemoval of abused services

M-commerce is the future …

… everyone has a hand phone

… but not the near future

Limited screen displayLimited speed of transmissionLimited services availableLimited size of keyboard

Successful strategy:m-cash

Small purchasesBrief transactionsCharged to phone bill

Necessary strategy:Privacy policy

Notice – of a privacy policy on the siteChoice – for the use of personal informationAccess – to your own informationSecurity – of information storage

Promising technology:e-markets

Online intermediary between buyers and sellersTrading hubs for vertical marketsPotential for cost savings

au@newark.rutgers.edu

http://newark.rutgers.edu/~au/bahria.htmhttp://newark.rutgers.edu/~au/bahria.ppt