This document defines and describes e-commerce, including its key characteristics and models. It notes that e-commerce refers to buying and selling of goods or services over electronic systems like the Internet. The document outlines different e-commerce models including business-to-consumer (B2C), business-to-business (B2B), business-to-government (B2G), consumer-to-consumer (C2C), and consumer-to-business (C2B). It provides examples of companies that use each model and describes the basic process and transactions involved in each.
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
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