E-COMMERCE
BUS IT 5
E-Commerce
Bus IT 5
Buying and selling of products or services over electronic systems such as
the Internet and other computer networks.
WHAT IS E-COMMERCE?
E-Commerce
• Is not E-business.
• E-commerce is also known as:
– E-tailing
– Electronic Data Interchange (EDI)
– Business-to-business
– Business-to-Consumer
Understanding E-Commerce
• E-commerce hosting or E-commerce web
hosting
• E-Commerce solution:
– Internet site builder
– Shopping cart software
• “Commerce”
• “Electronic”
E-Commerce and E- Business
•
•
•
•
E-commerce – selling and buying
E-commerce is only a part of E-Business
E-Business – all online business transaction
E-commerce involves only money
transactions.
• E-business – all aspects of business
E-Commerce and E-Business
• E-business is broader in scope and e-commerce is just an
aspect or a subset of it.
• E-commerce only covers business transactions such as
buying and selling of goods and services over the internet.
• E-commerce essentially involves monetary trade while in ebusiness, money transactions are not necessary.
• E-business involves marketing, product design, consumer
service evaluation, and more.
Types of E-Commerce
• Business-to-business (B2B)
• Business-to-consumer (B2C)
• Consumer-to-consumer (C2C)
• Consumer-to-business (C2B)
How can E-commerce be used?
• Community-based
• Shopping
• Other common applications
NEW CAPABILITIES THE INTERNET
BRINGS TO COMMERCE
• Speedier, more accurate transactions through
customer self-service
• Broader reach, larger potential customer base
• Better and richer information for the business,
partners, suppliers, and consumer customers
Distribution Channels
Pure Click
Website without any
previous existence as
a firm
Brick and
Click
Existing companies that
have added an online site
for e-commerce
Advantages of E-Commerce
• Faster buying/selling procedure, as well as easy to find
products.
•
Buying/selling 24/7.
•
More reach to customers, there is no theoretical
geographic limitations.
•
Low operational costs and better quality of services.
•
No need of physical company set-ups.
•
Easy to start and manage a business.
•
Customers can easily select products from different
providers without moving around physically.
Disadvantages of E-Commerce
• Any one, good or bad, can easily start a business. And
there are many bad sites which eat up customers’
money.
•
There is no guarantee of product quality.
•
Mechanical failures can cause unpredictable effects
on the total processes.
•
As there is minimum chance of direct customer to
company interactions, customer loyalty is always on a
check.
•
There are many hackers who look for opportunities,
and thus an ecommerce site, service, payment
gateways, all are always prone to attack.
Some E-Commerce Companies today
•
•
•
•
•
•
•
•
Vauxhall
Tesco
Newham Online
Priceline.com
The Flying Noodle
Chrysler Corp
Cisco
Dell Computers
Lessons learnt from the
Dell Experience
• Increasing margins and revenues
• Value-added for the customer heightened the
web experience
• Synergies with current business systems
• The perfect target market for consumer sales
• The perfect way emerged for business sales
How do you buy and sell online?
Buyer Logs
on to the
Internet
Buyer
Examines
Site
Buyer
browses the
site
Seller
receives
order
Enter
Credit/Debit
card details
Buyer marks
goods
Seller
processes
request
Seller
informs the
buyer
Seller
delivers
goods