E-commerce Industry: How the Internet is Changing Retail, Travel, Entertainment, & Communication

Hi, I’m Jack Plunkett. Today we’re going to talk about the e-commerce and Internet industry. Now, the thing to keep in mind is that the
Internet is all about saving time and therefore, saving money, and about
eliminating geographic and physical boundaries. That is the Internet will let
you do business or gather information or watch entertainment virtually anywhere,
anytime without any physical constraints whatsoever; beyond the necessity of
having access to the Internet whether wired or wireless. Now, let’s start with
e-commerce itself and let’s start with retailers. There are a large number of
e-commerce only retailers. Amazon by far being the dominant player worldwide in
that category. Also giant companies like some of subsidiaries of Alibaba, eBay, so
on and so forth. Keep in mind that a lot of e-commerce is also conducted by
retailers, that is physical store retailers, who are finding their store
traffic to be down in many cases while their Internet traffic and their
e-commerce sales are going up. E-commerce online selling is literally
revolutionizing the physical retail industry, so that today the most
successful retailers practice what we call Synergy of Bricks and Clicks. In
other words, make it easy to buy your merchandise, find your merchandise,
return your merchandise whether online or at the store. Now, also in e-commerce, we have
online travel agencies. Companies like Expedia and Priceline that have literally turned the travel industry
upside down by making it incredibly convenient for travelers all over the
world to compare airline seats, airline prices, airline destinations, hotel rooms,
hotel prices… anything that has to do with travel can
now be very, very quickly and easily compared, priced out, and booked online, and companies that are
providing airline seats and hotel rooms, that is the traditional travel companies
themselves, are scrambling to try to find a way to stay relevant in terms of
owning the customer. More and more the online travel agency owns the customer and
guides the customer in making that decision, rather than brand loyalty to some
airline or hotel line in particular. Next, there’s e-commerce in entertainment. For
instance, in music. Apple’s iTunes literally revolutionized
the sale of music overnight by making it simple, fast, and convenient to purchase, find, download, and enjoy music that you buy
online, whether in single songs or in albums. Now that online music delivery is
evolving to the point that many consumers are finding it more convenient
to subscribe to a huge lists of songs that are available all the time through
companies like Spotify and Pandora, and also through Amazon and Apple itself.
Entertainment ticket sales have ballooned and become the most convenient
way to buy your tickets to any type of entertainment event including just movie
theaters. Access to entertainment of all types by video and by subscription to TV
and subscription to things like Netflix are another form of literally
revolutionizing the entertainment industry by making it convenient for you
to watch what you want to watch, when you want to watch it, on whatever device you
want to watch it on. Another area again truly revolutionized by the Internet is
the delivery of voice communications and video conferencing. V-O-I-P, or Voice Over
Internet Protocol, where you bypass traditional telephone companies in some
cases, maybe get your telephone service through your cable TV provider, again
absolutely revolutionizing the telecommunications sector. What are
the developments you should keep an eye on? For the near future, first of all, there’s five G wireless
delivery promising vastly faster Internet access speeds on wireless
devices, smartphones, tablets, and so on. Much better, much improved over 3G and 4G.
Next, there’s a programming language called H-T-M-L five, providing much more
flexible design of Internet pages, much faster loading of data and images; just
a huge step up in a way that internet pages can be designed. Finally, there
is fiber to the premises or Fiber To The Home, sometimes called F-T-T-H. A good
example is Google Fiber. Now this is taking taking fiber-optic cable directly
into the user’s premises. Google Fiber is already delivering incredibly fast
speeds at wonderful prices in the handful of cities that it’s available
in, which has caused AT&T and competitors in the United States to
follow suit. We’re also seeing Fiber To The Premises in Asia, emerging in Europe,
it’s going to be a global revolution at extremely fast Internet delivery speeds. Those are the
things to keep an eye on in the near future of the Internet and
e-commerce industry now for complete information be sure to see our Plunkett
Research Online system in our E-commerce and Internet segment or see our fantastic
Plunkett’s E-commerce and Internet Business almanac. Thanks, I’m Jack Plunkett.

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4 thoughts on “E-commerce Industry: How the Internet is Changing Retail, Travel, Entertainment, & Communication

  1. Be sure to see our Ecommerce & Internet Industry page on our plunkettresearch.com website. You'll find a great industry overview and a very useful statistical overview table.

  2. i hate dealing with car salesman….maybe ill create an app to literally bypass the sales guy….the finance guy…the warranty guy….and become a billi…oops….trillionaire

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