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Ecommerce
ECOMMERCE AND PHYSICAL COMMERCE


                     COMMERCE




     ELECTRONIC COMMERCE        PHYSICAL / TRADITIONAL
                                COMMERCE

             INTERNET
             COMMERCE



 BUSINESS FOCUSSED    CONSUMER FOCUSSED
 ECOMMERCE            ECOMMERCE
Definition
Electronic commerce, commonly known
 as e-commerce, eCommerce or e-
 comm, refers to the buying and selling of
 products or services over electronic
 systems such as the Internet and other
 computer networks.
Can be defined as any form of business
 transaction in which the parties interact
 electronically
E-commerce involves digitally enabled
 commercial transactions between and among
 organizations and individuals
Digitally enabled transactions include all
 transactions mediated by digital technology
 Commercial transactions involve the exchange
 of value across organizational or individual
 boundaries in return for products or services
DIGITAL PHENOMENON
the drivers of e commerce
Data networks
Intense competition
Globalization
Information age
Technologies
Automation
Low cost high quality products/services
Eight unique features of E commerce
Ubiquity
Global reach
Universal standards
Richness
Interactivity
Information density
Personalization/Customization
Social Technology
3 TIER TECHNICAL MODEL FOR AN E-
COMMERCE


                 SERVER   BACKEND
   CLIENT SIDE
                 SYSTEM    SYSTEM
Difference between
Ecommerce and E business
ECOMMERCE SCENARIOS

RETAILING
SERVICING
PUBLISHING
SUPPLYCHAIN MANAGEMENT
ADVANTAGES OF ECOMMERCE
   24 * 7 OPERATION
   GLOBAL REACH
   COST OF ACQUIRING,SERVING AND RETAINING CUSTOMERS
   AN EXTENDED ENTERPRISE IS EASY TO BUILD
   DISINTERMEDIATION
   IMPROVED CUSTOMER SERVICE TO YOUR CLIENTS
   POWER TO PROVIDE THE BEST OF BOTH THE WORLDS
   A TECHNOLOGY BASED CUSTOMER INTERFACE
   THE CUSTOMER CONTROLS THE INTERACTION
   KNOWLEDGE OF CUSTOMER BEHAVIOUR
   NETWORK ECONOMICS
DISADVANTAGES

COST FACTOR
PERISHABLE ITEMS
DIFFICULT TO CALCULATE ROI
ECOMMERCE OPPORTUNITIES

FINANCIAL SERVICES
STOCK TRADING
BANKING
LEGAL AND PROFESSIONAL SERVICES
TOUR AND TRAVELS
HEALTHCARE
TRANSITION TO E COMMERCE IN
INDIA
          YEAR     TOTAL ECOMMERCE
                 TRANSACTIONS (Rs in Cr)

   1998-1999     131

   1999-2000     450

   2000-2002     1400

   2006          2300

   2007          7000
40000
35000
30000
25000
20000                              subscriber
15000                               user
10000
5000
   0
        1997 1999 2001 2003 2005
E TRANSITION CHALLENGES FOR INDIAN
CORPORATES
INTERNAL RESISTING ISSUES
   Bureaucratic wrangles
   Cultural changes
   Not many are prepared
   Lack of skill and training
EXTERNAL DRIVING FACTORS
   Sheer necessity
   Big business,the driving factor
   Global market
   Value for money
   No entry barriers
   others
MYTHS ABOUT ECOMMERCE DEVELOPMENT AND
IMPLEMENTATION

MYTH 1:
   Ecommerce is about developing web pages
MYTH 2:
   The successful implementation of ecommerce system
    relies on web programmers
MYTH 3:
   Ecommerce project is about translating the traditional
    business model into an electronic business model
Revenue Models

Advertising revenue model
Subscription revenue model
Transaction fee revenue model
Sales revenue model
Affiliate revenue model
Summary of E business transaction
             models
MODEL   DESCRIPTION                       EXAMPLES

B2C     Sells products or services        Amazon.com,Autobytel.com
        directly to consumers             ,ediets.com,pets.com
B2B     Sells products or services to     Metalsite.com,
        other business or brings multiple verticalnet.com
        buyers and sellers together in a SHOP2gether.com
        central marketplace

B2G     Business selling to local,state   Igov.com
        and federal agencies
C2C     Consumers sell directly to        Ebay.com,infoRocket.com
        consumers
How B2C works ?


                                    Searches for a
   Customer identifies                                      Selects a vendor
                                 Product or services to
        a need                                            And negotiates a price
                                    satisfy the need




   Receives the product
          or service                                      Gets service and
                                    Makes payment
(devilery logistics,inspection                             warranty claims
      And acceptance)
Steps for B2B transactions
 Review catalog
 Identify specifications
 Define requirements
 Post request for proposals(REP)
 Review vendor reputation
 Select vendor
 Fill out puchase orders(PO) send PO to vendor
 Prepare invoice
 Make payment
 Arrange shipment
 Organize product inspection and reception
Consumer-2-Consumer

With C2C ebusiness model ,consumer
 sell directly to other consumers via online
 classified ads and auctions,or b selling
 personal services or expertise online
Eg consumers selling directly to
 consumers are ebay.com (auction) and
 TraderOnline.com,InfoRocket.com
Consumer-2-Business(C2B)

Called as reverse auction or demand
 collection model,enables buyers to name
 their own price for specific good or srvice
 enerating demand.
The website collects the “demand bids”
 and then offers the bids to the participating
 sellers
ReverseAuction.com,pricline.com are
 examples of C2B ebusiness models

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Ecommerce Types and Models Explained

  • 2. ECOMMERCE AND PHYSICAL COMMERCE COMMERCE ELECTRONIC COMMERCE PHYSICAL / TRADITIONAL COMMERCE INTERNET COMMERCE BUSINESS FOCUSSED CONSUMER FOCUSSED ECOMMERCE ECOMMERCE
  • 3. Definition Electronic commerce, commonly known as e-commerce, eCommerce or e- comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. Can be defined as any form of business transaction in which the parties interact electronically
  • 4. E-commerce involves digitally enabled commercial transactions between and among organizations and individuals Digitally enabled transactions include all transactions mediated by digital technology  Commercial transactions involve the exchange of value across organizational or individual boundaries in return for products or services
  • 5. DIGITAL PHENOMENON the drivers of e commerce Data networks Intense competition Globalization Information age Technologies Automation Low cost high quality products/services
  • 6. Eight unique features of E commerce Ubiquity Global reach Universal standards Richness Interactivity Information density Personalization/Customization Social Technology
  • 7. 3 TIER TECHNICAL MODEL FOR AN E- COMMERCE SERVER BACKEND CLIENT SIDE SYSTEM SYSTEM
  • 10. ADVANTAGES OF ECOMMERCE  24 * 7 OPERATION  GLOBAL REACH  COST OF ACQUIRING,SERVING AND RETAINING CUSTOMERS  AN EXTENDED ENTERPRISE IS EASY TO BUILD  DISINTERMEDIATION  IMPROVED CUSTOMER SERVICE TO YOUR CLIENTS  POWER TO PROVIDE THE BEST OF BOTH THE WORLDS  A TECHNOLOGY BASED CUSTOMER INTERFACE  THE CUSTOMER CONTROLS THE INTERACTION  KNOWLEDGE OF CUSTOMER BEHAVIOUR  NETWORK ECONOMICS
  • 12. ECOMMERCE OPPORTUNITIES FINANCIAL SERVICES STOCK TRADING BANKING LEGAL AND PROFESSIONAL SERVICES TOUR AND TRAVELS HEALTHCARE
  • 13. TRANSITION TO E COMMERCE IN INDIA YEAR TOTAL ECOMMERCE TRANSACTIONS (Rs in Cr) 1998-1999 131 1999-2000 450 2000-2002 1400 2006 2300 2007 7000
  • 14. 40000 35000 30000 25000 20000 subscriber 15000 user 10000 5000 0 1997 1999 2001 2003 2005
  • 15. E TRANSITION CHALLENGES FOR INDIAN CORPORATES INTERNAL RESISTING ISSUES  Bureaucratic wrangles  Cultural changes  Not many are prepared  Lack of skill and training EXTERNAL DRIVING FACTORS  Sheer necessity  Big business,the driving factor  Global market  Value for money  No entry barriers  others
  • 16. MYTHS ABOUT ECOMMERCE DEVELOPMENT AND IMPLEMENTATION MYTH 1:  Ecommerce is about developing web pages MYTH 2:  The successful implementation of ecommerce system relies on web programmers MYTH 3:  Ecommerce project is about translating the traditional business model into an electronic business model
  • 17. Revenue Models Advertising revenue model Subscription revenue model Transaction fee revenue model Sales revenue model Affiliate revenue model
  • 18. Summary of E business transaction models MODEL DESCRIPTION EXAMPLES B2C Sells products or services Amazon.com,Autobytel.com directly to consumers ,ediets.com,pets.com B2B Sells products or services to Metalsite.com, other business or brings multiple verticalnet.com buyers and sellers together in a SHOP2gether.com central marketplace B2G Business selling to local,state Igov.com and federal agencies C2C Consumers sell directly to Ebay.com,infoRocket.com consumers
  • 19. How B2C works ? Searches for a Customer identifies Selects a vendor Product or services to a need And negotiates a price satisfy the need Receives the product or service Gets service and Makes payment (devilery logistics,inspection warranty claims And acceptance)
  • 20. Steps for B2B transactions  Review catalog  Identify specifications  Define requirements  Post request for proposals(REP)  Review vendor reputation  Select vendor  Fill out puchase orders(PO) send PO to vendor  Prepare invoice  Make payment  Arrange shipment  Organize product inspection and reception
  • 21. Consumer-2-Consumer With C2C ebusiness model ,consumer sell directly to other consumers via online classified ads and auctions,or b selling personal services or expertise online Eg consumers selling directly to consumers are ebay.com (auction) and TraderOnline.com,InfoRocket.com
  • 22. Consumer-2-Business(C2B) Called as reverse auction or demand collection model,enables buyers to name their own price for specific good or srvice enerating demand. The website collects the “demand bids” and then offers the bids to the participating sellers ReverseAuction.com,pricline.com are examples of C2B ebusiness models