E-commerce Build Blocks and Trends 2020-2021

Questions and Answers

What is the primary function of the Internet as described?

To manage governmental operations

To exclusively support e-commerce transactions

To facilitate communication and services among diverse entities (correct)

To connect only educational institutions

What estimation was provided regarding the number of connected devices to the Internet as of 2019?

25 billion to 50 billion devices

50 billion to 100 billion devices

5 billion to 10 billion devices

10 billion to 25 billion devices (correct)

How has the number of Internet hosts changed from 2000 to 2019?

Decreased from 72 million to 10 million

Remained relatively stable around 72 million

Increased from 10 million to over 1 billion

Increased from 72 million to over 1 billion (correct)

What technology is underpinning the growth of e-commerce?

The Internet, the Web, and mobile platforms Signup and view all the answers

Which of the following services is NOT commonly provided by the Internet?

Physical transportation Signup and view all the answers

What was one of the original purposes of creating the Internet?

To connect mainframe computers and their users Signup and view all the answers

Which of the following statements regarding Internet hosts is true?

Internet hosts can be measured by their domain names Signup and view all the answers

What is characterized as part of the Internet's growth since its inception?

An increase in the numbers of Internet hosts Signup and view all the answers

What is the role of cloud computing in transforming the mobile platform?

It provides Internet-based access to stored content. Signup and view all the answers

What is big data primarily produced from?

Online interactions between users. Signup and view all the answers

What was the estimated total social commerce revenue worldwide in 2020?

$90 billion Signup and view all the answers

Which software is used to analyze big data for consumer purchase patterns?

Business analytics software. Signup and view all the answers

What is the primary focus of local e-commerce?

Engaging consumers based on their geographic location Signup and view all the answers

What concern has arisen regarding user-generated content on social networks?

It threatens user privacy. Signup and view all the answers

How does the EU General Data Protection Regulation affect companies?

It applies to companies operating in EU member nations. Signup and view all the answers

By what amount did local e-commerce grow in the United States in 2020?

$125 billion Signup and view all the answers

What is a significant concern regarding online security?

Major companies are losing control over customer information. Signup and view all the answers

Which term describes the combination of mobile, social, and local e-commerce?

Mobile-social-local e-commerce wave Signup and view all the answers

What factor has fueled the growth of local e-commerce?

Interest in local on-demand services Signup and view all the answers

What effect does on-demand service e-commerce have on job creation?

It results in temporary jobs without benefits. Signup and view all the answers

What is a common issue faced with online communications?

Spam remains a significant problem. Signup and view all the answers

What has significantly contributed to the growth of retail e-commerce and m-commerce during 2020?

The Covid-19 pandemic Signup and view all the answers

Which segment of e-commerce is expected to continue increasing despite the pandemic?

B2B e-commerce revenues Signup and view all the answers

What percentage of digital ad spending is accounted for by mobile advertising?

70% Signup and view all the answers

What is one of the main drivers behind the growth of local e-commerce?

Increased interest in on-demand services Signup and view all the answers

Which company category benefitted from the pandemic despite its challenges?

Grocery delivery services Signup and view all the answers

How many people worldwide are using mobile apps as mentioned in the content?

2.8 billion Signup and view all the answers

What types of services are mobile messaging platforms like WhatsApp and Facebook Messenger increasingly utilized for?

Personal communication and social networking Signup and view all the answers

What do small businesses commonly utilize to enter the e-commerce marketplace?

Infrastructure created by industry giants Signup and view all the answers

What was the retail m-commerce revenue in 2020?

$2.8 trillion Signup and view all the answers

What percentage increase did retail m-commerce revenues experience in 2020?

32 Signup and view all the answers

What is the anticipated retail m-commerce revenue for 2024?

$4.5 trillion Signup and view all the answers

Mobile e-commerce refers to the use of which devices to enable transactions?

Smartphones and tablet computers Signup and view all the answers

What type of sales declined significantly in 2020 due to the pandemic?

Digital travel sales Signup and view all the answers

How are mobile consumers enabled to conduct online transactions?

Via cellular and wireless networks Signup and view all the answers

What is a significant factor expected to influence the future growth of retail m-commerce?

Increase in mobile device usage Signup and view all the answers

Study Notes

Technological Build Blocks of E-commerce

The Internet is a vast network connecting billions of devices including computers, smartphones, tablets, and other Internet-connected consumer products.
Established in the late 1960s, the Internet has evolved to become the largest global network.
Estimates suggest there were between 10 billion to 25 billion connected devices worldwide as of 2019.
In 2019, there were over 1 billion Internet hosts across more than 245 countries, a significant increase from 72 million in 2000.

E-commerce Trends (2020–2021)

The Covid-19 pandemic accelerated the growth in retail e-commerce and mobile commerce (m-commerce).
Nearly 2.8 billion people worldwide use mobile applications, enhancing the mobile app ecosystem.
Social e-commerce generated approximately $90 billion in revenue in 2020, supported by advertising on social networks.
Local e-commerce expanded significantly, driven by demand for on-demand services like Uber and DoorDash, surpassing $125 billion in the U.S. in 2020.
B2B e-commerce remained stable during the pandemic and is projected to continue growing.
Mobile advertising accounted for over 70% of all digital ad expenditures.

Technological Advancements

The mobile platform revolutionized online transactions via smartphones, tablets, and wearable devices.
Messaging services like Facebook Messenger and WhatsApp are used by 45% of the U.S. population.
Smart speakers, such as Amazon Echo and Google Home, are gaining popularity for e-commerce platforms.
Cloud computing facilitates access to consumer data and software via internet-based servers.
The Internet of Things (IoT) is growing exponentially with billions of connected devices producing significant data.

Data Utilization

Firms harness big data through business analytics to understand consumer behavior and purchase patterns in real-time.

User-generated content has exploded in online platforms, promoting self-publishing while raising privacy concerns.
Regulatory impacts are prompted by privacy issues, particularly in the EU with the General Data Protection Regulation.
The dominance of Facebook, Amazon, and Google has raised calls for government regulation in the U.S. and EU.
Online security is under threat as companies face hacking incidents and privacy invasion concerns.

E-commerce Sectors

Mobile e-commerce (m-commerce) reached nearly 2.8trillioninsalesgloballyin2020,withprojectionsofgrowthto2.8 trillion in sales globally in 2020, with projections of growth to 2.8trillioninsalesgloballyin2020,withprojectionsofgrowthto4.5 trillion by 2024.
Local e-commerce focuses on engaging consumers through location-based services, benefitting from the rise of local on-demand services.

Summary of E-commerce Types

Mobile e-commerce, social e-commerce, and local e-commerce are interconnected trends reshaping consumer engagement and transaction methods, supported by technology advancements and changing consumer behavior.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore the foundational technology behind e-commerce and the trends that emerged in 2020-2021. Understand how the Internet has expanded and how the Covid-19 pandemic transformed retail and mobile commerce. Dive into the statistics of connected devices and the rise of social e-commerce.