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ELECTRONIC
COMMERCE
CONTEXT
 Definition of E-Commerce.
 History of E-Commerce.
 Advantages and Disadvantages of E-Commerce.
 Types of E-Commerce.
 E-Commerce Examples.
 Some of E-Commerce Websites
WHAT IS E-COMMERCE?
 E-commerce consists of the buying and
selling of products or services over
electronic systems such as the Internet and
other computer networks.
 Electronic commerce commonly known as
e-commerce or eCommerce.
E-Commerce
 Electronic commerce was identified as the
facilitation of commercial transactions
electronically, using technology such as
Electronic Data Interchange (EDI) and
Electronic Funds Transfer (EFT).
 What is EDI?
 What is EFT?
Electronic Data Interchange (EDI) & Electronic
Funds Transfer (EFT)
 EDI is the structured
transmission of data
between organizations by
electronic means. It is used
to transfer electronic
documents or business data
from one computer system
to another computer
system.
 EFT is the electronic
exchange or transfer of
money from one account to
another.
History of E-Commerce
 The growth and acceptance of credit cards, automated
teller machines (ATM) and telephone banking in the
1980s were also forms of electronic commerce.
 Another form of E-Commerce was the airline reservation
system, for example Sabre in the USA and Travicom in
the UK.
 By the end of 2000, many European and
American business companies offered their
services through the World Wide Web.
 Since then people began to associate a word “E-
Commerce" with the ability of purchasing
various goods through the Internet using secure
protocols and electronic payment services.
History of E-Commerce
Advantages of E-commerce
 Faster buying/selling procedure, as well as easy to
find products.
 Buying/selling 24/7.
 Low operational costs and better quality of services.
 Easy to start and manage a business.
 No need of physical company set-ups.
 Customers can easily select products from different
providers without moving around physically.
Disadvantages of E-commerce
 There is no guarantee of product
quality.
 There are many hackers who look
for opportunities, and thus an
ecommerce site, service, payment
gateways, all are always prone to
attack.
Types of E-comerce
B2B (Business-to-Business)
B2C (Business-to-Consumer)
C2B (Consumer-to-Business)
C2C (Consumer-to-Consumer)
BUSINESS TO BUSINESS (B2B)
 B2B can be open to all
interested parties or limited to
specific, pre-qualified
participants (private electronic
market).
 Companies doing business with
each other such as
manufacturers selling to
distributors and wholesalers
selling to retailers.
BUSINESS TO CONSUMER (B2C)
 Businesses selling to the general public typically through
catalogs utilizing shopping cart software.
 B2C is the indirect trade between the company and
consumers.
 It provides direct selling through online.
 If you want to sell goods and services to customer so that
anybody can purchase any products directly from
supplier’s website.
CONSUMER TO BUSINESS (C2B)
 A consumer posts his project with a set budget online
and within hours companies review the consumer's
requirements and bid on the project.
 The consumer reviews the bids and selects the
company that will complete the project.
 C2B empowers consumers around the world by
providing the meeting ground and platform for such
transactions.
CONSUMER TO CONSUMER (C2C)
 It facilitates the online transaction of goods or services
between two people.
 Though there is no visible intermediary involved but the
parties cannot carry out the transactions without the platform
which is provided by the online market maker such as eBay.
E-COMMERCE EXAMPLES
 An individual purchases a book on the Internet.
 A government employee reserves a hotel room over
the Internet.
 A business buys office supplies on-line or through an
electronic auction.
 A manufacturing plant orders electronic components
from another plant within the company using the
company's intranet.
How to Protect Your Privacy While
Online
Strategies for Successful E-Commerce:
Developing an Effective Web Presence
 Decide which tasks the site must accomplish
 An effective Web site creates an attractive
presence and meets the needs of its visitors
 It may be necessary to redefine your site’s
business model to capture new business
opportunities
Putting up a Web Site
 Web site hosting companies: companies that
provide the tools and services required to set up
a Web page and conduct e-commerce within a
matter of days and with little up-front cost
 Storefront broker: companies that act as
middlemen between your Web site and online
merchants that have the products and retail
expertise
Building Traffic to Your Website
 Obtain and register a domain name
 Make your site search-engine-friendly
 Meta tag: a special HTML tag, not visible on the
displayed Web page, that contains keywords
representing your site’s content, which search
engines use to build indexes pointing to your Web
site
 Web site traffic data analysis software
Maintaining and Improving Your Website
 Be alert to new trends and developments in e-commerce
 Be prepared to take advantage of new opportunities
 Personalization: the process of tailoring Web pages to
specifically target individual consumers
 Explicit
 Implicit
Summary
 In business-to-consumer (B2C) e-commerce, customers deal
directly with the organization
 In business-to-business (B2B) e-commerce, the participants are
organizations
 In consumer-to-consumer (C2C) e-commerce, the participants
are individuals
 A multistage model for e-commerce includes search and
identification, selection and negotiation, purchasing, product or
service delivery, and after-sales service
Summary (continued)
 Supply chain management is a key value chain composed of
demand planning, supply planning, and demand fulfillment
 Mobile commerce (m-commerce) uses wireless devices to
place orders and conduct business
 Electronic retailing (e-tailing) is the direct sale from business
to consumer through electronic storefronts
 A digital certificate is an attachment to an e-mail message or
data embedded in a Web page that verifies the identity of a
sender or a Web site
Summary (continued)
 Threats to e-commerce include e- and m-commerce incidents,
theft of intellectual property, fraud, and invasion of consumer
privacy
 Strategies for successful e-commerce
 Developing an effective Web presence
 Putting up a Web site
 Building traffic to your Web site
 Maintaining and improving your Web site
MSA Technosoft

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eCommerce | Electronic Commerce

  • 2. CONTEXT  Definition of E-Commerce.  History of E-Commerce.  Advantages and Disadvantages of E-Commerce.  Types of E-Commerce.  E-Commerce Examples.  Some of E-Commerce Websites
  • 3. WHAT IS E-COMMERCE?  E-commerce consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks.  Electronic commerce commonly known as e-commerce or eCommerce.
  • 4. E-Commerce  Electronic commerce was identified as the facilitation of commercial transactions electronically, using technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT).  What is EDI?  What is EFT?
  • 5. Electronic Data Interchange (EDI) & Electronic Funds Transfer (EFT)  EDI is the structured transmission of data between organizations by electronic means. It is used to transfer electronic documents or business data from one computer system to another computer system.  EFT is the electronic exchange or transfer of money from one account to another.
  • 6. History of E-Commerce  The growth and acceptance of credit cards, automated teller machines (ATM) and telephone banking in the 1980s were also forms of electronic commerce.  Another form of E-Commerce was the airline reservation system, for example Sabre in the USA and Travicom in the UK.
  • 7.  By the end of 2000, many European and American business companies offered their services through the World Wide Web.  Since then people began to associate a word “E- Commerce" with the ability of purchasing various goods through the Internet using secure protocols and electronic payment services. History of E-Commerce
  • 8. Advantages of E-commerce  Faster buying/selling procedure, as well as easy to find products.  Buying/selling 24/7.  Low operational costs and better quality of services.  Easy to start and manage a business.  No need of physical company set-ups.  Customers can easily select products from different providers without moving around physically.
  • 9. Disadvantages of E-commerce  There is no guarantee of product quality.  There are many hackers who look for opportunities, and thus an ecommerce site, service, payment gateways, all are always prone to attack.
  • 10. Types of E-comerce B2B (Business-to-Business) B2C (Business-to-Consumer) C2B (Consumer-to-Business) C2C (Consumer-to-Consumer)
  • 11. BUSINESS TO BUSINESS (B2B)  B2B can be open to all interested parties or limited to specific, pre-qualified participants (private electronic market).  Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers.
  • 12. BUSINESS TO CONSUMER (B2C)  Businesses selling to the general public typically through catalogs utilizing shopping cart software.  B2C is the indirect trade between the company and consumers.  It provides direct selling through online.  If you want to sell goods and services to customer so that anybody can purchase any products directly from supplier’s website.
  • 13. CONSUMER TO BUSINESS (C2B)  A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project.  The consumer reviews the bids and selects the company that will complete the project.  C2B empowers consumers around the world by providing the meeting ground and platform for such transactions.
  • 14. CONSUMER TO CONSUMER (C2C)  It facilitates the online transaction of goods or services between two people.  Though there is no visible intermediary involved but the parties cannot carry out the transactions without the platform which is provided by the online market maker such as eBay.
  • 15. E-COMMERCE EXAMPLES  An individual purchases a book on the Internet.  A government employee reserves a hotel room over the Internet.  A business buys office supplies on-line or through an electronic auction.  A manufacturing plant orders electronic components from another plant within the company using the company's intranet.
  • 16.
  • 17.
  • 18. How to Protect Your Privacy While Online
  • 19. Strategies for Successful E-Commerce: Developing an Effective Web Presence  Decide which tasks the site must accomplish  An effective Web site creates an attractive presence and meets the needs of its visitors  It may be necessary to redefine your site’s business model to capture new business opportunities
  • 20. Putting up a Web Site  Web site hosting companies: companies that provide the tools and services required to set up a Web page and conduct e-commerce within a matter of days and with little up-front cost  Storefront broker: companies that act as middlemen between your Web site and online merchants that have the products and retail expertise
  • 21. Building Traffic to Your Website  Obtain and register a domain name  Make your site search-engine-friendly  Meta tag: a special HTML tag, not visible on the displayed Web page, that contains keywords representing your site’s content, which search engines use to build indexes pointing to your Web site  Web site traffic data analysis software
  • 22. Maintaining and Improving Your Website  Be alert to new trends and developments in e-commerce  Be prepared to take advantage of new opportunities  Personalization: the process of tailoring Web pages to specifically target individual consumers  Explicit  Implicit
  • 23. Summary  In business-to-consumer (B2C) e-commerce, customers deal directly with the organization  In business-to-business (B2B) e-commerce, the participants are organizations  In consumer-to-consumer (C2C) e-commerce, the participants are individuals  A multistage model for e-commerce includes search and identification, selection and negotiation, purchasing, product or service delivery, and after-sales service
  • 24. Summary (continued)  Supply chain management is a key value chain composed of demand planning, supply planning, and demand fulfillment  Mobile commerce (m-commerce) uses wireless devices to place orders and conduct business  Electronic retailing (e-tailing) is the direct sale from business to consumer through electronic storefronts  A digital certificate is an attachment to an e-mail message or data embedded in a Web page that verifies the identity of a sender or a Web site
  • 25. Summary (continued)  Threats to e-commerce include e- and m-commerce incidents, theft of intellectual property, fraud, and invasion of consumer privacy  Strategies for successful e-commerce  Developing an effective Web presence  Putting up a Web site  Building traffic to your Web site  Maintaining and improving your Web site