E-Commerce Commission Press Kit

THE FUTUREAnalysts believe that Internet retailing (where sales are actually completed on the Internet) willgrow quickly, but they vary widely on just how quickly. On the conservative end, it is expectedto reach $7 billion by the year 2000. 90 If mail order sales are used to determine the potential forWeb retail sales, as some suggest, the figure could reach $115 billion in five to eight years. 91 Ifonline shopping provides customers with a larger assortment, better prices, and greater choicethan mail order companies, the figure may even exceed that projection.To make the most of the potential of the Internet, retailers will have to overcome a number ofchallenges. Among others, they will need to increase consumer confidence in relying on computerimages and information to determine the quality and fit of a product, and simplify the process ofreturning defective or unwanted merchandise. They will also need to address the question ofcredit card security and consumer privacy.Making Virtual Purchases More “Real”How can virtual images on the Internet replicate the sensation of picking up a product, feeling thematerial and its texture or sturdiness, trying it on (in the case of clothing) or sitting down on it (inthe case of a sofa) before making the decision to buy?As described earlier, Internet retailers offer very detailed product descriptions online. Manyprovide toll-free numbers for customers who prefer to speak with a sales representative beforemaking a purchase. As video and voice become more widely used, some Internet sites can beexpected to give customers the choice to click on a button and speak directly with a customerservice or sales representative via the Internet. As bandwidth increases, three-dimensional imagesthat show the product from a variety of angles will supplement or replace the flat photos on mostsites today. Customers visiting Internet furniture stores will be able to furnish their own homesand apartments by “dragging and dropping” furniture and accessory icons into rooms thecustomer has made to resemble those in his home. This feature will enable customers to gaugehow well different pieces of furniture fit into a room of a given size, and which furniture styles orcolors work best together.How well will Internet retailers satisfy demands, particularly in the U.S., for immediategratification, no-fuss returns, and a strong customer service policy?Customers are generally interested in speed of delivery and ease of return. The emergence ofextensive overnight shipping in many parts of the world already allows retailers—including thoseon the Internet—to provide quick, reliable service. As Web retailing increases, overnightdelivery and “drop shipping” services from manufacturers to the customer’s home are likely togrow as well. Customers who worry that they will have to make an extra trip to the post office orparcel delivery company if a product they order via the Internet is not what they had in mind maybe surprised to learn that some companies will actually send packaging overnight, free of charge,38