As the internet grows, the number of merchant sites increases

As the internet grows, the number of merchant sites increases. At the end of 2007, the number of merchant sites in France was estimated at 32,000. Attracting customers to its site became more and more expensive and complex, which made the economic balance of many sites difficult.

There are many electronic transactions, but the network also makes it possible to circumvent market logic and, therefore, does not necessarily lead to the creation of economic value (Peer-to-peer exchange of music or videos between individuals, sale of counterfeits, recovery wild content of information infringing copyright, etc.)

The digitization of information goods is strongly re-composing the value chains of industries such as the press, publishing, communication and entertainment (music, cinema, games, television). This recomposition is leading to major restructuring in these industries, with losses significant use.

The factors favoring the development of electronic commerce:

        a-the technological environment: electronic commerce combines the use of terminals and networks. If broadband access to the Internet is an essential factor, access to connected connected terminals is also one, as is the variety of accesses to the Internet. The development of Wi-Fi wireless networks (http: //fr/wikipedia.org/wiki/Wi-fi) widens the possibilities of access to Internet in its public areas like the stations, the airports or even the hotel. The availability of inexpensive connection terminals is also a key factor in equipping consumers. In this respect, the development of high-speed wireless mobile telephone networks (3G and 3G +) has made it possible to transform the mobile telephone into an Internet access terminal, which multiplies the number of potential e-commerce customers by the same amount. The arrival of “intelligent” mobile terminals (smartphones) with internet capacities equivalent to those of a laptop (Wi-Fi, simple navigation interface) will democratize internet access.

b-public infrastructure: the growth in online sales is strongly correlated with the penetration rate of broadband Internet access. Consequently, the network infrastructure allowing Internet access constitutes a significant factor in the development of electronic commerce. broadband access is highly dependent on the quality of a country’s telecommunications infrastructure. Indeed, the main access technology, ADSL, is very dependent on the physical quality of the telephone lines and the distance between the end customer and the telephone exchange (http://fr.wikipedia.org/wiki/ADSL ). Furthermore, for the maximum number of citizens to be able to access this technology, it is necessary for the public authorities to favor, through an appropriate legal framework, the development of Internet access throughout the territory. In this regard, the delegation of public service entrusted to local authorities facilitates the deployment of broadband access in low density regions in which private operators are reluctant to invest.

       c-the rate of computer equipment: The rate of computer equipment of consumers is a fundamental factor of electronic development. Even if there are alternatives to connecting to the Internet (connection from the workplace, cyber cafes, public kiosks), most consumers prefer to use their personal equipment to place an order online. This IT equipment constitutes a real cost of access to electronic commerce, a cost which had been made zero when the Minitel was introduced in France by free distribution of the connection terminal. The penetration rate of micro-computing in French households exceeded 50% in 2005 and reached 55% in 2006. This rate is notoriously one of the lowest in the European Union. Northern Europe (Denmark, Sweden) has penetration rates above 80%. The United States has a rate of 65% and Japan, 78%.

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