E-Commerce...  
...I Believe
by. J. Carlton Collins, CPA

E-commerce solutions first hit the accounting software market in 1996 with the introduction of SBT ProSeries' Web Trader module. Crude by today's standards, this module was revolutionary and it sparked a monumental effort among accounting software publishers to duplicate, or better yet, top this product. Budgets were committed and programmers tapped feverously on their keyboards to bang out e-commerce applications.

To everyone's dismay, sales of e-commerce solutions even to this day have been lackluster at best. The fizzling sales have left accounting software publishers scratching their heads and turning their attentions towards more pressing matters. It seemed so obvious; it seemed so right; it seemed like a sure thing. What went wrong?

Wait. Hold on a minute. Before we hold a big funeral and offer our condolences - I have a few things that I would like to say. Here in 2002, I still think that e-commerce will ultimately be the biggest thing since sliced bread. Please hear me out. Tell me where I am wrong.

I Do all of My Shopping on the Web

To start with, for the past five years I have purchased almost everything over the internet. I wouldn't buy furniture, a bike, a car, a camera, a boat, a house, office supplies, airline tickets, toys, clothes, computers, books, without first shopping it over the internet. The web saves me time, it makes me a more informed consumer, and it almost always saves me 20% to 25% of my purchase price. Here are some of my personal examples, just to share a few:

As you can see by the above few examples, the cost savings can be impressive. These prices do not reflect savings for sales taxes, which usually more than covers shipping costs. In 1999, I calculated that I saved more than $18,000 by shopping on the web - most of these savings were related to travel. My wife and I also purchase numerous books, gifts, supplies, and other items over the web. Not only do I save money, but this also saves me time. A trip to the store can eat 1 to 3 hours of your time here in Atlanta, but a similar trip to the web takes only 10 to 15 minutes. Other benefits of web shopping include:

• Not risking a head on collision traveling to the store

• Not polluting the atmosphere with my automobile's combustible engine

• No wear and tear on my automobile, no rubber worn off my tires

• Not being mugged in the parking lot once there

• Not succumbing to impulse purchasing once I am in the store

I told this story in December 2001 during a conference in a Salt Lake City, Utah and made my usual boastful claim that I save 20% to 25% on almost everything I purchase over the Internet. Before I could go much further, a participant from the audience called me on it. He pretty much insinuated that I was lying, or at least exaggerating. He challenged me in front of the entire audience by stating that he had just purchased a German Martindale bridle for $99 and that he had searched many retail outlets before finding this great price. He challenged me to do better. The gauntlet had been thrown down. I knew that I had to respond or my credibility would have been shot. I started using the search tools to locate the item in question. It took me about 4 minutes, but I was able to find the exact German Martindale bridle for just $59.00. Needless to say, my skeptical friend was amazed and he hung around after the presentation to tell me. 

Why Some People Avoid Shopping on the Web

In my opinion, there are several reasons why so many people don't shop on-line as follows:

• Many people have slow dial up access to the internet and as a result, shopping on line takes hours, not minutes. Heck, if my microwave oven took 8 hours to bake a potato, I wouldn't use it either.

• Many people use the wrong search tools to search the internet. Try this for yourself. Go to Yahoo! and search for the word magazine, then do the same in Google. On march 1, 2002, Yahoo! found 14,861 hits while Google found 23,700,000 hits. Yes, that's right - 15 thousand compared to 24 million. Most people who use Yahoo to search the Internet are in fact using one of the worst search tools possible. No wonder they can't find what they are looking for.

• Many people don't know how to use the search tools. Instead of looking for "baseball" and "equipment", try looking for "baseball" and "equipment" and "$" and "order" and "credit card". In this manner you are far more likely to find web sites that actually sell the gear you are looking for.

• Many people have a fear of using their credit card over the internet. This is ridiculous. Using your credit card over the internet is one of the safest things you can do. If you want to take a risk, try pulling out your credit card at a restaurant or convenience store - that's where your number gets ripped off most. Besides, there is a federal law that limits your liability to just $50.

• Many people want to examine and inspect the items before purchasing. I'll give you that. The Internet does not allow you to touch and feel items before purchasing. However, you can always find the items at the store, and then shop them on-line later. Many web stores offer a 30 day money back return guarantee that helps a little. In 2001, my wife and I took our kids to see Santa Claus at the mall, and afterwards we shopped for a couple of hours. It wasn't until we walked out of the mall that I noticed that we had not purchased a single item in the mall, but we had compiled a list of items to shop online. It was not intentional mind you, it is just a habit that comes natural to us now. I certainly don't want those stores to go out of business, but saving 20% to 25% is fairly important to me. How about you?

• Many people avoid Internet shopping because they fear viruses and pornography. It is true that the Internet is a quick source for viruses and pornography. However, it is possible to prevent viruses and block pornography. I recommend that you purchase and install eTrust virus protection (or some other virus protection product) for about $29. I also recommend that you purchase a SonicWall firewall device (or some other firewall device) for about $290. The SonicWall device will protect against Internet viruses, and for an additional monthly fee, will block all pornography. It is also wise to upgrade your Windows operating system and Office applications with the latest security patches and adjust your security levels to high.

• Finally, many people fear the process of returning an item purchased on-line. For some reason the one hour process of driving to a store and waiting in a long line is easier to stomach than the 20 minute process of calling the company and shipping the item back.

Often my neighbors, family and friends ask me to find good prices for them. They know that I have the high speed internet connection and a stellar command of the Internet search tools needed to locate their item at the best prices possible. At least they know where the bargains are, even if they don't take the initiative to install high-speed web access or learn the search tools for themselves.

Conclusion

In conclusion, I am a believer in the future of web-commerce because I have personally made the transition to web shopping. I know in my heart that most of you out there would make this transition too, if only you had high speed access and a good working knowledge of searching the web. This being the case, it is only a matter of time before we all do a sizable chunk of our purchasing online. When this happens, and it will, e-commerce applications will be all the rage and many accounting software publishers stand ready to meet that need today.

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