1. Online Shopping
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2. What is Online Shopping?
The online selling of or enabling
the sale of products or services to
consumers.
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3. How did Online Shopping come about?
• Online shopping emerged with the
development of the internet.
• Entrepreneurs saw the potential in online
shopping and sprung at the chance to make
virtual storefronts, so that consumers could
shop without leaving their homes.
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4. Growth of Online Shopping
• There are over 70,000 new websites put on
the internet every hour.
• Internet traffic is doubling every three
months.
• Projected annual internet commerce
revenue has grown from $35 billion in 1998
to $1.4 – $3.2 trillion in 2003.
(Taken from CISCO Systems WEB Site) Fariwala.com-online shopping

5. Risks & Disadvantages of Online
Shopping
•
•
•
•
Fraud- Do you know the Company?
Security- Is your credit card safe?
Privacy- Is your information being sold?
Shipping- Are you getting the correct product at
the requested time?
• Difficulty- Do you know how to shop online?
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6. Consumer Benefits
• Convenience
-Geographic
-Store hours
-Ease of transaction
-Quick and efficient shopping process
• Information
-Quick location of items
-Easy price/attribute comparisons
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7. Firm Benefits
• Less dependence on intermediaries
-Geographic distribution
-Holdup
-Time to delivery
• Marketing
-Target marketing
-Direct customer relationships
-Customer service
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8. Online Shopping VS. Traditional
Shopping
• Differences
-Cannot try or test product before
purchase.
-Minimum human interaction if any.
-Cannot pay by cash.
-Shop anytime online.
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9. Online Shopping VS. Traditional
Shopping
• Similarities
-Advertisement.
-Security.
-Convenience.
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10. 2005 expected pattern of
electronic shopping users
% items
shopped
electronically
50-75%
1
Consumer acceptance(%)
15-20% "hard core"
2
15-20% occasionals
25-35%
3
15-20% experimenting
10-20%
4
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All the rest still irregulars!
shopping
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5%

11. •
•
•
•
•
Key Findings of Michael
De Kare-Silver in eshock:
Already about 15-20% of consumers say they’d prefer to
shop electronically rather than visiting the shops.
It only takes a drop of about 15% in store traffic to make
many stores unprofitable.
This revolution will achieve critical mass as early as 2005.
Manufactures can seize the opportunity to decide whether to
establish their own direct consumer distribution and bypass
existing retail chains.
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