E-commerce Sales Research Articles

Business to Consumer (B2C) E-Commerce Decade Evolution

This paper is a review on Business to Consumer (B2C) electronic commerce (e-commerce) and it studies its evolution over the last decade. The Internet characteristics that affect B2C are the Internet growth, which at first includes the number of Internet users and secondly, the infrastructure, which is basically the quality and speed of the lines. Moreover, the way the Internet growth has affected the B2C e-commerce growth over the last ten years is studied in three major countries-areas. The USA because it is an Internet developed country with vast e-commerce sales, China because it is a rapidly developing Internet country with a large number of users and fast e-commerce activity growth in the last decade and finally, the European Union, because of its diversity in Internet and e-commerce growth. This paper focuses on the aforementioned three geographic areas and extracts its conclusions from the observations of B2C behavior growth in these areas.

B-2-C Pre-Dispute Arbitration Clauses, E-Commerce Trust Construction and Jenga: 'Keeping Every Cog and Wheel'

In its pro-consumer stance the EU has reaffirmed its commitment to ban pre-dispute arbitration clauses in its new Proposals for a Directive on ADR, and a Regulation on a Common European Sales Law. This course of direction has begun despite the fact that cross border B-2-C e-commerce sales are below expectations. The EU does not need reminding building trust in e-commerce is essential. However, trust construction needs to be re-examined from the perspective of ODR if a genuine concern exists to build the right form of trust.This article adopts a inter-disciplinary approach to re-assess the legitimacy of pre-dispute arbitration clauses in the e-B-2-C low-value/high-volume Clip-Wrap context. What is proposed is to view them from an interest-based system trust approach. Under this reframing they are regarded as strategic “imperative cogs”, which are essential in building system trust. These need to work with crowdsourced consumer-centric business models to produce sustainable system trust and predictability via perceived fairness.

E-Commerce Growth and the Changing Structure of the Retail Sales Industry

Recent studies of the growth in e-commerce retail sales examine mainly supply side factors, such as the application of information technology, low transaction costs etc. The author uses an empirical model that provides evidence of significant demand side factors which also help explain structural changes in the industry. Based on quarterly data from 1999 Q4 to 2010 Q3, the econometric results indicate an e-commerce sales elasticity of 9.36 and a non-e-commerce sales elasticity of (2.63), indicating a more dynamic and competitive internet market. Evidence of more demand stability for e-commerce sales is also provided. The policy implications for growing e-commerce sales necessitate strategic policies for planned expenditures on R&D and investments in information technology as well as the efficient use of store space by traditional retailers. The use of income elasticity differential for analyzing competition between these two sectors provides an alternative method to price differential used in previous studies.

Impact of Internet Advertisement and Its Features on E-Commerce Retail Sales: Evidence from Europe

The stimulus to carry out this research is to investigate the relationship between internet advertisement and its features on the total E-commerce sales of the top five countries of Europe. The units of analysis are the individuals of UK, France, Italy, Germany and Netherland. Secondary data are collected from the reports of [1] (ADEX, 2010) and [2] (Eurostats, 2011). To empirically determine the relationship between independent variable and dependent variable in the European context, the study uses various statistical techniques, including OLS regression and correlation analysis techniques. The empirical findings indicate that the Internet advertisement features of search advertisement and classified advertisement have positive significant relationship with the E-commerce sales in Europe. The empirical findings indicate negative significant relationship of display advertisement with the E-commerce sales in Europe. However, this variable is also justified with the help of literature. Findings also demonstrate that search advertisement has strong positive relationship and it generates positive influence for the E-commerce sales as compared to the classified advertisement and display advertisement. Firms and marketers which are investing in online advertisement will find these results useful as they can get better sales and can use these features of online advertisement in order to maximize the sales of their products and services.

Electronic commerce sales' response to gasoline price

This research incorporates the economic aspect consumer behaviour to analyse the impact of gasoline price on e-commerce retail sales. We posit that gasoline price reflects the opportunity cost monetary and time savings of doing online transactions; also the other independent variable, real income, characterises consumers' propensity for internet shopping. The econometric results, based on quarterly data from 1999 Q4 to 2010 Q3, indicate the significance of both independent variables. The gasoline price elasticity supports the behavioural hypothesis that high transport costs motivate online shopping; also the high sales income elasticity indicates the pro-cyclical characteristics of e-commerce retail sales. Stationarity and cointegration of the variables attest to the reliability of the results and the usefulness of the model for forecasting. The implications of the results are important; slow economic growth and volatile gasoline prices could create uncertainty in the growth of e-commerce sales; this could impact business planning for expenditures on information technology.

Online Credit Card Fraudulent Detection Using Data Mining

As e-commerce sales continue to grow, the associated online fraud remains an attractive source of revenue for fraudsters. These fraudulent activities impose a considerable financial loss to merchants, making online fraud detection a necessity. The problem of fraud detection is concerned with not only capturing the fraudulent activities, but also capturing them as quickly as possible. This timeliness is crucial to decrease financial losses. In this research, a profiling method has been proposed for credit card fraud detection. The focus is on fraud cases which cannot be detected at the transaction level. In the proposed method the patterns inherent in the time series of aggregated daily amounts spent on an individual credit card account has been extracted. These patterns have been used to shorten the time between when a fraud occurs and when it is finally detected, which resulted in timelier fraud detection, improved detection rate and less financial loss.

The E-Commerce Sales and Use Tax Controversy: Is the End Near?

The 2008 recession and tepid recovery have exacerbated the financial troubles of state governments. In seeking additional revenues, states have not only been litigating but have also been enacting legislation requiring online vendors to collect and pay taxes on e-commerce sales. Amazon.com, the primary target of these state initiatives, has taken a surprising reversal. This article addresses the constitutional origins of the dispute, governmental responses, and the possible end to the ongoing taxation battle between states and remote vendors.

Taxation of Internet Sales - Where in the Cyberspace is Nexus?

The advent of the Internet in the 1980’s revolutionized the world of computers, information technology and communication. The Internet, with its international broadcasting capabilities, is an instrument for broadcasting information and a medium for partnership and interaction between persons and their computers without regard to geographic setting. Its viral capability has reinvented the way the world works, communicates, and deciphers information. Because of the Internet’s instantaneous abilities, news spreads like wildfire around the world, keeping secrets is virtually impossible, and persons and companies now have direct and immediate access to their target audience. With the dawn of the Internet age, the corporate world also found a new and efficient way of doing business – via e-commerce. In the U.S. alone, e-commerce retail sales grew from $995 billion in 1999 to $2,385 billion by 2006. A 2009 study estimated that e-commerce transactions are anticipated to rise from $3 trillion in 2010 to $4 trillion in 2012. This study further predicted that while $45.9 billion dollars in sales taxes will be due by the states cumulatively in 2012, only $34.5 billion of that amount will actually be collected, resulting in an anticipated overall U.S. sales tax loss of $11.4 billion dollars in 2012 alone. Amidst these staggering numbers, can states do anything more to collect sales tax emanating from e-commerce sales? The answer to this question lies at the heart of the query: Where in the cyberspace is nexus? While this article does not attempt to define a solution to this question, its purpose is to present an overview of statutory rules currently in place pertaining to sales and use tax, with particular attention paid to the area of e-commerce sales; examine the Constitutional mandates in place regarding “nexus” and “physical presence”, with heavy emphasis placed on federal and state judicial case law; scrutinize the current situation between deficit-stricken state taxing jurisdictions and cyber-retailers seeking shelter under the umbrella of the Due process and Commerce Clauses; and provide observations for the need to create uniformity among the states in dealing with e-commerce transactions.

An Empirical Study of Online Word of Mouth as a Predictor for Multi-product Category e-Commerce Sales

The ability to exchange opinions and experiences online is known as online word of mouth (WOM) and has been shown in the literature to have the potential to impact e-commerce sales. The purpose of ...

Senior Citizens and E-commerce Websites: The Role of Perceived Usefulness, Perceived Ease of Use, and Web Site Usability

Introduction Conducting business over Web has become a key component of business strategies. According to U. S. Department of Commerce (2004, 2006a, 2006b, 2007) total retail e-commerce sales in 2007 were $136 billion, an increase of 25.6% from previous year and an amazing 207% increase compared to 2002. E-commerce sales as a percentage of total retail sales also continued to increase and, for 2007, were at 3.3% of total retail sales. Despite continued growth in e-commerce and potential for future growth in e-commerce, companies have reported problems in attracting new customers and retaining existing ones (Devaraj, Fan, & Kohli, 2002) and face challenges in converting online visitors to real purchasers (C. Chen, 2003). One of ways to explain this is to apply Technology Acceptance Model (TAM) (see Figure 1) which states that success of a system can be deter mined by user acceptance of system, measured by two variables: Perceived Usefulness of system and Perceived Ease of Use of system (Davis, 1989). According to model, a user's perceptions about a system's usefulness and ease of use result in an intention to use (or not use) system (Davis, 1989; Venkatesh, 2000). [FIGURE 1 OMITTED] The TAM has been tested in many empirical studies (Burton-Jones & Hubona, 2005), found to be highly valid and reliable (Koufaris, 2000), and is widely referenced (Devaraj et al., 2002). The external variables represent attributes or characteristics of system, such as overall design and features of system, user's computer skills, capabilities and abilities, and user's knowledge, beliefs, and attitude toward computers. Perceived usefulness is defined as the degree to which a person believes that using a particular system would enhance his or her job performance. Perceived ease of use refers to the degree to which a person believes that using a particular system would be free of effort (Davis, 1989, p. 320). Data from U. S. Census Bureau (2004) indicate that U.S. population, when compared to 2000 census and then adjusted for fertility, mortality, and international migration rate estimates, will increase 9.8% by 2010, another 8.7% by 2020, and another 8.3% by 2030. Seniors, people 65 years of age and older (Fox, 2004), are estimated, based on this same data, to increase at a faster rate, a 15% increase by 2010 and a staggering 35.8% by 2020. What is even more significant is that by 2030 senior population will double and become almost 20% of U.S. population. This is important because senior population is increasingly using Internet to communicate via e-mail with family and friends and to get information and evaluate services (Hanson, 2001). Seniors also conduct e-commerce transactions, utilize online access to financial services such as banks and brokerage firms, obtain travel information, and research health-related services. A problem facing designers of e-commerce Web sites is that seniors face challenges to using computers and navigating Web sites (Gregor & Newell, 2001; Hanson, 2001) since, as people age, their sight, their cognitive functions, and their motor-skills may change (Becker, 2004; Gregor & Newell, 2001; Hawthorn, 2000). Since usability of an e-commerce Web site can be a predictor of success (Agarwal & Venkatesh, 2002; L. Chen, Gillenson, & Sherrell, 2004; Gefen, Karahanna, & Straub, 2003), these aging problems have an impact on ability for seniors to effectively use Web (Becker, 2004) and to conduct e-commerce transactions. It is seniors' desire to use e-commerce Web sites and design of e-commerce Web sites that were focus of this research. Prior studies of TAM and e-commerce Web sites have not been conducted with sole participation from senior population. …

Implications of growing electronic commerce for freight transportation: A case study of the United States

Recent advancements in information and communication technologies have led to the rapid growth of electronic commerce market. In the United States, e-commerce retail sales for 2002 reached $45.6 billion, indicating an increase of 26.9% from 2001 while total retail sales increased 3.1% during the same period. Although e-commerce sales account for only 1.4% of total sales in this country, forecasts show that the magnitude of digital economy will continue to expand. The logistical requirements of e-commerce goods that extend to each customer's address stimulate greater complexity in traditional supply chain management, potentially causing higher costs for freight supply chain participants. To harness the economic potential of e-commerce, it is important to encourage the development of a freight transportation system that will support its steady growth, while avoiding the possible negative effects from the changes in freight transportation. Due to the intrinsic nature of e-commerce goods, advances in home delivery have the potential to promote the growth of e-commerce as well as to create sustainable urban freight transportation systems. Based on the case study of the United States, this paper presents an in-depth discussion of the key challenges arising in home delivery operations, and proposes potential solution strategies that will lead to more efficient and reliable home delivery systems.

Importance of Usability Considerations to Purchase Intention on E-Commerce Website with Different User Groups

E-Commerce sales grow with unprecedented speed these years. The success of the E-Commerce website can be directly affected by its usability. A survey study was conducted to investigate the effect of 19 usability considerations on user's purchase intention with E-Commerce websites. Responses from 300 web users were obtained and analyzed. Factor analysis reveals that users' purchase intention on E-Commerce website is affected, in descending importance by the following five usability factors: trustworthiness, information access cost, shopping support, ease of comprehension, and hedonic quality. Some interesting differences among user groups of different gender, age, and ethnic background were also revealed, which can be used to guide design efforts for websites targeting special user groups.

Que peut-on dire des stratégies tarifaires sur Internet ? Une étude économétrique sur la vente en ligne de CD en France

French E-commerce sales have tremendously grown these last two years, even if the estimated amount of transaction is still marginal. Beyond this relative success, E-commerce raises many questions. Are electronic markets more competitive than traditional markets? Are supply strategies specific on the Internet? This paper attempts to scrutinize the pricing policy of on-line retailers, focusing on the CD market. For this purpose, we collected data about CD prices on Internet during June and July 2001. This data set enables us to establish that online prices are strongly dispersed and rather volatile. Then we proceed to econometric tests to identify the drivers of price level and price dispersion on the Internet. These tests enable us to sketch a typology of online supply strategies.

Do consumers understand the role of privacy seals in e-commerce?

E-Commerce sales in the U.S. totaled $56.0 billion in 2003, an increase of 26.4% over the 2002 total of $44.3 billion [7]. This increase was achieved at a time when the U.S. economy teetered in and out of recession. While e-commerce sales are expected to grow rapidly, Jupiter Research speculates that privacy concerns will cause billions in lost sales for Internet-related businesses [2]. Although all commercial and business transactions require an element of trust, the amount of data required to complete an online B2C transaction and the potential for fraud has continually raised privacy concerns [1, 9].

Strategies and Price Competition on the Internet: Evidence on French Data

French E-commerce sales have tremendously grown these last two years, even if the estimated amount of transaction is still marginal. Beyond this relative success, E-commerce raises many questions. Are electronic markets more competitive than traditional markets? How can we explain price dispersion on Internet? This paper deals with the pricing strategies of on-line retailers. For this purpose, we have collected data about CD prices on Internet during June and July 2001. This data set enables us to establish that online prices are strongly dispersed and rather volatile. Then we develop a repeated game model to analyze behaviors of CD retailers. Hence we prove that the probability of price collusion should increase with the age of a CD and decrease with its popularity. In other words, a collusion between CD retailers is more likely when the demand for a CD declines. This hypothesis is not rejected by econometric regressions on price level and price dispersion. These results give evidence of a relaxed competition on the older and less popular CD records.

An E-Commerce Sales Model for Manufacturing Companies:: A Conceptual Framework and a European Example

The Internet offers manufacturers a new way to market their products and interact with end-consumers. For the first time, manufacturers can, through the Internet, dis-intermediate traditional players in the distribution chain and in addition to selling products, provide services to online customers. This paper analyses three aspects of B-2-C (Business-to-Consumer) e-commerce from a manufacturer’s perspective. First, it presents the manufacturer’s traditional value chain and how the Internet permeates its activities. Second, it proposes an e-commerce sales model for manufacturers and discusses related business and management issues. Third, it illustrates through an actual example how Ducati, an Italian motorcycle manufacturer, successfully used the proposed e-commerce business model to sell exclusively on the Internet its new motorcycle model as well as complementary products and services. Lessons learned from this innovative marketing and sales approach are presented and concluding remarks offered.

Tobacco commerce on the internet: a threat to comprehensive tobacco control

Although internet use continues to increase and e-commerce sales are expected to exceed US$1 trillion by the end of 2001, there have been few assessments in the literature regarding the...

Firms set to increase e-commerce sales from new training package

Firms set to increase e-commerce sales from new training package

Automating supply chains

A recent study found that supply-chain problems cost companies between 9 and 20 percent of their value over a six-month period (T.J. Becker, 2000). The problems range from part shortages to poorly utilized plant capacity. When you place this in the context of the overall business-to-business (B2B) market expected to reach US$7 trillion by 2004 (37 percent of which is projected to be e-commerce sales), it is easy to see that effective supply-chain management (SCM) tools could save companies billions of dollars. Attempts to automate solutions to these problems are complicated by the need for the different companies in a supply chain to maintain the integrity and confidentiality of their information systems and operations. The modeling technologies currently used within the manufacturing business-to-business standards communities, such as the Open Applications Group (http://www.openapplications.org) and RosettaNet (http://www.rosettanet.org) do a good job of capturing user requirements. Unfortunately, current technologies do not explicitly link the requirements to formal process models. This missing link is crucial to efficient SCM implementations.

Next-generation Web services: Enabling the customer-centric organisation

This paper describes a future of anytime, anywhere computing where customers will use a multiplicity of connected devices to access rich Internet services. Successful websites of the future will not simply be about presenting content or transacting e-commerce sales — they will integrate data between different sites and allow customers to create their own personalised ‘Internet experience’. The third wave of interactive marketing is almost upon us, where the Web will be more than just a channel of communication, clearly establishing itself as a ‘programmable asset’.