Ecommerce and Website Development: Hype and Reality

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E-commerce and Website Development Hype and
Reality

• Ka-Neng Au
• Rutgers University
• 30 March 2002

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Introduction

• National IT policy
• Investment in network infrastructure
• Emphasis on human resource development for IT

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E-commerce hype

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

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E-commerce is profitable

• 32.6 billion in 2001 U.S. sales
• 19.3 annual growth
• all retail sales only 3.0

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but only for the few

• Only 1 of retail sales
• High cost of acquiring new customers
• Low click-through rate for banner ads
• Inefficient supply chain management

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Successful strategies

• bricks and clicks
• Online partnerships
• Technology upgrades

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Shopping is easy

• just point and click

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but paying is hard

• Forms, forms, forms
• Privacy concerns
• Security fears
• Shipping costs

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Successful strategy Digital wallets

• Acceptable to buyers and sellers
• Easy to understand and use
• Low overhead per transaction
• Secure and resistant to fraud

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E-commerce is secure

• for consumers

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but not for merchants

• Break-ins
• Distributed denial of service
• E-mail bombing

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Necessary strategies

• Firewalls to restrict access
• Frequent password changes
• Re-routing of network traffic
• Removal of abused services

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M-commerce is the future

• everyone has a hand phone

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but not the near future

• Limited screen display
• Limited speed of transmission
• Limited services available
• Limited size of keyboard

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Successful strategym-cash

• Small purchases
• Brief transactions
• Charged to phone bill

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Necessary strategyPrivacy policy

• Notice of a privacy policy on the site
• Choice for the use of personal information
• Access to your own information
• Security of information storage

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Promising technologye-markets

• Online intermediary between buyers and sellers
• Trading hubs for vertical markets
• Potential for cost savings

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au_at_newark.rutgers.edu

• http//newark.rutgers.edu/au/bahria.htm
• http//newark.rutgers.edu/au/bahria.ppt