E-Commerce Commission Press Kit

At Auto-by-Tel, a leading Web-based auto marketplace, shoppers can access model and pricinginformation, including dealer invoice pricing and manufacturer rebate information on all new andused cars from 2,700 accredited dealers from across the country. Along with a picture of the carand brief descriptions, the customer can access new-car and used-car pricing from third partysources like AutoSite, Edmund’s, CarCenter and the Kelley Blue Book.After deciding which car to buy, the customer enters the zip code where he or she lives and themake and model of the car desired. A screen pops up requesting that the customer indicate whatcolor exterior and interior he wants, the type of transmission, the number of cylinders, and whenthey prefer a 2-door or 4-door model. Then the customer completes a new car purchase request,selecting the manufacturer options to include on the car (radio, power windows, anti-lock brakes,sunroof, etc.) After making these selections and providing contact information, the customer’srequest is transmitted to the Auto-by-Tel dealer closest to the customer’s home. Within 24 hours,the dealer contacts the customer with a firm price.Internet businesses selling life insurance products arm consumers with software tools that helpthem determine what types of insurance they might need, as well as information to enable themmake educated choices between one insurer’s policy and another’s. Quicken InsureMarket, anInternet-based insurance marketplace, provides one illustration. Visitors maneuver through theInsureMarket site, accessing only the information they want; for example, an explanation of aterm they do not understand, information about the carrier’s rating, or how much and which typeof insurance is suitable for them, given their family’s financial profile. A consumer cancomparison shop for term life policies by clicking on a button and answering some basic questionsabout residence, age, health, income, family situation, and the amount of insurance desired. In amatter of moments, the customer receives personalized quotes from up to seven carriers and up tofour agent contact options. The system randomly generates the order of the insurance carriersproviding quotes and referrals the visitor sees so as not to give an advantage to any single carrier.At a glance, the customer can compare the policies and the prices of several different carriers.Another few clicks of the mouse, and the customer has more information about each carrier andpolicy to determine whether a price difference between apparently similar policies is reallyjustified.LOWER PRICESCommerce, and therefore competition, on the Internet is still undeveloped. A good deal ofInternet retail is being driven by convenience, the search for a broader selection, or theopportunity to find items not readily available in ordinary retail outlets.Despite its infancy, some Internet retailers offer discounts from traditional channels. For instance,online booksellers discount some books by 40 percent over typical bookstore prices. 94(Depending on the cost of delivery, the total cost of an item may be higher on the Internet than ata store.) Consumers buying and selling stocks through the Internet commonly pay $8- $30 pertrade, while traditional brokerages charge approximately $80 per trade on average. 95 Internetusers can access most online news and information free of charge.43