E-Commerce Outside of the E-Commerce Outside of the USAUSA

ByBy

Arthur FotosArthur Fotos

Global E-CommerceGlobal E-Commerce

$50.4 Billion (US$) in 1998$50.4 Billion (US$) in 1998– USA accounts for 74% of E-Commerce RevenueUSA accounts for 74% of E-Commerce Revenue– Europe - $5.6 BillionEurope - $5.6 Billion– Asia - $1.25 BillionAsia - $1.25 Billion– Japan - $55 MillionJapan - $55 Million– Latin America - $170 MillionLatin America - $170 Million– Australia/New Zealand - $100 MillionAustralia/New Zealand - $100 Million– Middle East - $11 millionMiddle East - $11 million

$1.3 trillion projected in 2003$1.3 trillion projected in 2003– Rest of world will account for 46%Rest of world will account for 46%

Internet Users By RegionInternet Users By Region

Obstacles Of Global E-Obstacles Of Global E-CommerceCommerce Poor InfrastructurePoor Infrastructure

– most people don’t have computer/internet accessmost people don’t have computer/internet access

– internet access can be 10-100x more expensive outsideinternet access can be 10-100x more expensive outside of USAof USA

Taxation issuesTaxation issues– which country levies taxes on international transactionwhich country levies taxes on international transaction

Payment/Delivery of ProductsPayment/Delivery of Products– most people do not have credit cardsmost people do not have credit cards– shipping costs can make shopping online impracticalshipping costs can make shopping online impractical

Economic/Social IssuesEconomic/Social Issues– most of world is cash based economymost of world is cash based economy– Haggling over price is still common in most of the worldHaggling over price is still common in most of the world

Advantages of Basing E-business Advantages of Basing E-business Outside of USAOutside of USA

Tax advantages - Tax advantages - – can set up business in country with low taxescan set up business in country with low taxes

Sell Gray/Black market products and Sell Gray/Black market products and ServicesServices– internet gambling -internet gambling -

$600m a year industry$600m a year industry 90% of customer are US citizens90% of customer are US citizens 270+ sites, most based in Caribbean270+ sites, most based in Caribbean

– offshore banking - offshore banking - can set up bank account in foreign countrycan set up bank account in foreign country over over

thethe internetinternet can hide assets from IRS, etccan hide assets from IRS, etc..

CreditsCredits Internet Gambling Statistics - Internet Gambling Statistics -

– American Bar Association Journal -March 1999American Bar Association Journal -March 1999

Internet Statistics -Internet Statistics -– NUA Internet Surveys -www.nua.comNUA Internet Surveys -www.nua.com– E-Commerce Times - www.ecommercetimes.comE-Commerce Times - www.ecommercetimes.com– International Data Corp. -www.idc.comInternational Data Corp. -www.idc.com– Wired MagazineWired Magazine– USA Today - USA Today - – CommerceNet - www.commerce.netCommerceNet - www.commerce.net