E-Shopping

In this day and age, we have grown dependent

on technology?our whole life revolves around it; from work to home life, we have been very heavily influenced by our technology. Most importantly, we have produced an attachment with computers. Computers have deeply influenced our world, one aspect being shopping. Computer shopping has produced many affects, mostly economical. This era is one in need of an economic boost to better the world in its turmoil, and internet shopping may be the answer.

The most important affect the internet bestowed, or e-shopping as we like to call it, is its affect on the economy. Now is the future, and our retailing process needs a major change, as Birch, Schneider, and Gerbert (who wrote E-Tail) said, ?[to] re-invigorate the prospects of players in traditional consumer business?? (E-Tail 10). They also said, ?[?] [A] ?low price? but ?high delivered value? position has been economically irrational[?]to the retailer until now? (11). Such as it is right now: specialty stores deliver a high price and high quality, department stores deliver a high price and medium quality, warehouses deliver medium prices and quality, discount stores deliver medium prices and low quality, warehouse clubs deliver low price and quality, and internet shopping is the answer: it delivers low price and high quality (Birch, Schneider, and Gerbert 14). Within these past years, internet sales have increased. Although e-sales make up a paltry 1.5-3% all in all (Puente 2E), e-sales make up 23% of all book, music, electronic, computer, and toy sales (Puente 2E). According to Jupiter Research, internet revenues have increased $40 billion in 2002, as opposed to the increases in 2001 ($30 billion) and 2000 ($24 billion); U.S. online revenue has been growing 30-40% a year as opposed to 4% a year in offline retail (Puente 2E). Due to the incident of September 11th, 5% of the 2,000 people NetRatings asked said they would do their shopping online in case of terrorism in public places (Tsao C1). Out of the Americans with internet access, 29% will make a purchase during the month (Voglestein 1c). Holiday shopping has extenuated this increase. Goldman Sachs and Nielsen/Net Ratings reported that shoppers spend 17.5% of holiday money on the internet in 2002. Also, on Black Friday (the major shopping day after Thanksgiving), sales were up 22% and on Monday, 37% due to e-shopping (2).

Internet shopping is mainly influenced by its products and, mostly, internet shopping influences the products as well. The best products to buy (and also make up the majority of the sales) are those that do not have to be physically examined by the buyer (such as food), products that have helpful information, have cheap costs, have customer feedback, and have a high profit potential per cube (if being shipped). Some of these products include music, travel and health products, clothing and software, and computers and even cars (Birch, Schneider, and Gerbert 32-33)! Over the 1998 season, Future Magazine reports 150% rose in clothing, 210% rise in household goods, a 230% increase in computer soft and hardware, a 250% rise in travel, a 290% rise in books and music, a 310% increase in toys, and a 340% increase in gifts (L. and J. Price pg. 3).

The Internet is growing constantly because of many reasons. It is one of the fastest-growing ?fads? of all time, and, now, it is an opportune time for an economic jump. The Web lured us flies into its trap, connecting 10 million users in just 4 years, and a the end of the millennium, 200 million. Internet use is caused by ?its content, the ?digitalization? of devices, global research, and user experience? (Birch, Schneider, and Gerbert pg. 21). According to Birch, Schneider, and Gerbert, many obstructions to the internet are being plowed down by eager users, allowing the for the Internet to grow: since Internet technology is still in its primordial state, its use and speed will increase, becoming more shopper-friendly and have an expanded website capacity; private Internet connections in households are increasing, its trend increasing over 50% a year; security is cracking down on criminals evermore so?new standards and payment options are security?s response; and website content and design are making themselves more organized and pleasing to the eye (36-37).

E-retailing is proven to be successful. A perfect example is Jeff Bezos, the founder of Amazon.com (AMZN) in 1995. He has proved that ?you can sell goods successfully over the Internet [and] e-tailing can take significant market share from traditional retailers? (Birch, Schneider, and Gerbert 17). He has received 1.5 billion in 1998 (Kanaley F1), was on Nasdaq?s 100 list (the best-performing business, having stocks $26 a share) (Tsao C1), and is expect ed to have a 25% increase this year (Tsao C1).

A major question to be answered is ?why folks shop online? (L. and J. Price 4). Simple. You save time, there is no carrying heavy packages, and you can shop in your p.j.?s! According to Andersen Consulting, people can save an average of 20-45% on purchases, and the stores get a 10-20% revenue (L. and J. Price 2). Also, an AOL survey said 40% of internet shopping takes place between 10 p.m. and 10 a.m., when most offline retailers are closed. A major factor in online shopping?s popularity is its anonymity?most people do not want to be seen buying some health remedies or provocative nightwear. Using your credit card is much safer online than handing it to a store attendant or waiter. According to a census, 22% of people are happier with there purchases online this year than last year (Kanaley F1). In another survey according to Best Buy, 50% of their customers go online before