Future of Ecommerce
According to a new study from the Center for Research in Electronic
Commerce, eCommerce will become the industrial revolution of the
Internet economy continues to grow robustly, with both new and
established companies reaping profits online. eBusiness still has
huge untapped potential, according to Anitesh Barua, associate
professor of information systems at the center. He believes that its
effect on our industrial economy will be as significant as the shift
from the agricultural economy of the 17th Century.
discussed the Dell-sponsored study during the company's press
gathering in San Francisco.
are a visible but small part of the Internet Economy, and their
failings are overplayed in the media," he said. "The dot-com economy
is not crumbling. A great many dot-com businesses are doing well.
They're running with sound business practices, and they're doing it
without cash from venture capitalists."
September, the center completed a study, which supports this claim.
They accomplished this with help from more than 1,200 businesses in
the U.S. and Europe. The bulk of the study focuses on the positive
impact the Internet is having on businesses, big and small. This
isn't just about selling something online. It's about companies
taking business processes onto the Internet, streamlining them and
example, large companies that implemented new Internet technologies
-- such as improved supply-chain processes - saw improvements of 13
percent to 21 percent in financial performance measures. For
multibillion-dollar companies, that's a huge savings that can
improve the bottom line, as well as the economy as a whole.
Internet can have an even larger impact on smaller companies, which
typically do not face the same infrastructure difficulties of larger
firms. A small company that includes the Internet in its business
model can achieve greater market share and visibility and can reach
new markets more effectively.
study, small businesses with annual revenues of less than $10
million saw average improvements of 40 percent to 50 percent in
Department of Commerce has also released statistics, which document
the increasing impact of eBusiness on our lives. The online sales
figures for the third quarter indicate that total online retail
sales reached nearly $6.4 billion for the quarter ended Sept. 30.
That's a 15.3 percent increase from the previous quarter, and the
biggest increase since the department started tracking eCommerce
numbers a year ago.
uncertain what the sales growth actually means. Does it indicate
that the number of online shoppers has increased, or does it show
that shoppers have simply become more comfortable purchasing
big-ticket items? The fact that auto dealing is the second
fastest-growing segment hints at the latter.
figures also indicated that pure-play Internet retailers are lagging
behind their mail-order and bricks-and-clicks counterparts. And
despite its healthy growth, e-commerce sales still represented less
than 1 percent of the $812 billion in overall retail sales for the