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PA e-Comm News FEBRUARY 8

President Bush and the Treasury Department have proposed a 10-day filing extension for online individual tax filers and private partnerships, so the IRS can handle more returns via the Internet. This should save time and money for both taxpayers and the government. Currently, electronic tax filing involves an arrangement between the IRS and an e-filing vendor like H&R Block. One detriment to filing online is the added cost – usually about $10 to $12; others include security, privacy and reliability issues. The goal of the IRS is to have electronic tax filings make up 80 % of total filings by 2007.

The airline industry is trying to find ways to check your background when you make a reservation, reliably verify your identity several times from check-in to gate and monitor you as you travel. Solutions may range from a “smart card” for frequent fliers to biometric identification systems linked to a global list of “bad guys.” Expectedly, civil liberty groups are concerned about racial profiling and lack of security over personal information. But for most Americans, adequate travel security overcomes those issues. IBM and EDS are two companies racing to satisfy these needs. Some airlines are developing “trusted traveler” programs in which frequent fliers who share some personal and biometric information with the airlines will be allowed to pass more quickly through security-screening processes.

Sotheby's, which has operated its own online auction site for two years, has announced an affiliation with eBay to feature higher-end art, antiques, etc. on eBay. The new Sothebys.com site will take advantage of real-time online bidding and open the auctions to the world, but will not replace its traditional showroom auctions. EBay will also now include listings from Priceline.com for airline tickets, hotel rooms, car rentals, cruises, time-shares and vacation packages. While this arrangement may not follow the regular auction system, it is expected to increase the visitors to the eBay site.

A recent study by AOL reports that the Internet is now the primary tool used by teenagers to communicate. In fact, according to the survey of more than 6000 teenagers, 81 % between the ages of 12 to 17 use the Internet to e-mail friends or relatives and 70 % use instant messaging. These numbers jump when you get into the 18 & 19 year old category. But teens also rely heavily on the Internet for research and homework assistance. Add to this the time they spend downloading digital music and it is no wonder parents have trouble getting computer time in the home. What device is the most desired by teenagers? A cell phone with messaging capability. 

What has made sites like Amazon, eBay and Travelocity successful while others have struggled or succumbed? Experts agree it is knowing your niche and targeting your audience. For the future, many experts look for more direct links from sites to consumers -- such as home-appliance manufacturers selling directly to consumers, shipping directly to the home or for pick up at a local retailer. Many also believe there is still a market for home grocery delivery. So what is holding this development back? A lack of venture capital.

A recent study by the Intermarket Group reported that 84% of Internet users have made purchases online but less than a third do it regularly. The Intermarket Group believes the growth in consumer ecommerce has been the result of the increase in the number of Internet users and increased confidence.

The FBI’s 2001 Computer Crime and Security Survey reports that cybercrime is on the rise. But for the first time, it appears that incidents precipitated by outside hackers outnumbered those originated by internal threats. It is generally agreed that internal perpetrators remain the most difficult threats to fight because they know where the corporate secrets are kept and they know how to hide their tracks.

While most Americans were watching the Superbowl, advertisers were watching the meter run on their campaigns. Particularly AT&T, which used the game to showcase its mLife wireless brand. According to a survey by Jupiter Media Metrix, AT&T won big - registering 681,000 unique visitors on game day, up from 34,000 the day before. 

Keeping with the sports theme, Winter Olympic organizers are calling this year's ticket sales a triumph, thanks to Tickets.com, which was hired to handle ticket orders. This year, consumers could buy all tickets online or phone in requests. 83% bought online either at www.olympics.com or www.tickets.com. Tickets.com registered 40,000 people online with minimal effort and held a random lottery with their software keeping track of demand. As noted, this is the most complex ticketing event in the world, with multiple venues, multiple times and multiple countries. Tickets.com made no money from the ticket sales, instead making this effort an investment in marketing. 

NEWS & NOTES is a service of the PA e-Commerce Association. Please forward this e-mail to anyone else who might be interested in the content or in learning more about the Association. Remember to visit our website @  www.paecomm.org or call 717-238-9366.

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