A new category of e-learning is emerging, according to Eduventures.com, a company that provides research on the e-learning market. So-called "educommerce" involves offering free Web-based education to market your products and drive e-commerce sales.

A cure for e-commerce struggles

Educommerce evolved as companies struggled to boost or even maintain online sales of their goods. E-commerce vendors found that simply having a Web site wasn't enough to generate revenue through sales. They tried to spark income by selling online ads, but that didn't provide a total solution. Ultimately, they need Web site "stickiness," with customers making a purchase and returning again and again. However, the return on investment for many companies running Web operations is low, says Eduventures.com. Customer acquisition costs hover around US$25 per person, and customer conversion rates average 4.7 percent.

Education is never out of style

As Eduventures.com notes, the total e-learning market should grow from US$3.6 billion in 1999 to US$25.3 billion in 2003. Corporate and government e-learning will make up almost half that US$25.3 billion market, while K-12 and higher education make up the rest.

However, says Eduventures.com, these numbers do not take into account the online customers with consumer education needs and interests. Examples include newcomers to the stock market who want to learn the basics of investing, or literature enthusiasts who want to share insights and read learn more about a particular book or genre. That's where educommerce comes into the picture.

The convergence of online learning and e-commerce bolsters a company's online sales and marketing strategy by offering Web visitors something unique: education. The assumption behind the concept is that an educated customer is a loyal customer -- and more likely to buy a product. This has corollaries in the offline world, as well, such as Home Depot offering carpeting workshops.

Could this work for you?

This strategy could work not only for e-tailers but also for companies in vertical markets ranging from financial services and health care to law and real estate, notes Eduventures.com. If you think you might benefit from an educommerce program and go looking for a vendor to help you implement a course package, consider the following criteria:

Scalability -- Depending on your market and customer base, the platform might have to scale to tens of thousands of users. Design your site to handle heavy Web traffic.

Concentrated market focus -- Because education is a sales and marketing tool, educommerce vendors need to show you they have core competencies in your market. Is their solution just a repackaged corporate training product?