Course name: E-commerce
Instructor: Nguyen The Dai Nghia
Email: nghiantd@uel.edu.vn
Faculty of Information Systems
Introduction
Upon successful completion of this course,
students will be able to:
 Describe characteristics of e-commerce and list all its basic
models
 Outline IT infrastructure required for e-commerce
 Explain advantages and disadvantages of different online
payment options
 Discuss common legal, ethical issues in E-Commerce
 Analyse, design an e-commerce system
 Apply the knowledge of online security techniques to protect
websites
 Prepare a plan for online maketing
 Plan to start-up an e-commerce business project
Course book:
[1] Kenneth C. Laudon, E-commerce 2019: Business.
Technology. Society, (Global Edition), Pearson, 2019
Learning Objectives
1.1 Understand why it is important to study e-commerce.
1.2 Define e-commerce, understand how e-commerce differs
from e-business
1.3 Identify and describe the unique features of e-commerce
technology and discuss their business significance.
1.4 Describe the major types of e-commerce.
1.5 Understand the evolution of e-commerce from its early
years to today.
1.6 Describe the major themes underlying the study of ecommerce.
1.7 Identify the major academic disciplines contributing to ecommerce.
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E-commerce
Chapter 1
Introduction to E-commerce
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The First Thirty Seconds
 First two decades of e-commerce
 Just the beginning
 Rapid growth and change
 Technologies evolve at exponential rates
 Disruptive business change
 New opportunities
 Why study e-commerce
 Understand opportunities and risks
 Analyze e-commerce ideas, models, issues
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Everything On Demand: The “Uberization”
of E-commerce
Class Discussion
Have you used Grab or any other on-demand
service companies?
What is the appeal of these companies for users
and providers?
Are there any negative consequences to the
increased use of on-demand services like Grab and
Airbnb?
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What is E-commerce
 E-commerce:
 The
use of the Internet, the Web, and mobile
apps and browsers running on mobile devices to
transact business.
 Or, the digitally enabled commercial transactions
between and among organizations and
individuals
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Slide 4-7
The difference between
& E-business
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Slide 4-8
E-Commerce
Digitally enabled commercial transactions between and
among organizations and individuals
E-business:
Digital enabling of transactions and processes within
a firm, involving information systems under firm’s
control
Does not include commercial transactions involving
an exchange of value across organizational
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The difference between
E-commerce & Traditional commerce
Point of distinction
E-commerce
Traditional commerce
Interaction
Indirect interaction between
buyer and seller through
internet
Direct interaction between
buyer and seller
Suitability
For low-value products,
intangible, digital products
Products needed to convince
customers, high-value
products
Transaction
processing
Automatically
Manually
Scope
Across the global
Restricted to a definite area
Accessibility
Any time
Limited
Cost effectiveness
Less expensive
More expensive
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Slide 4-10
Technological Building Blocks Underlying
E-commerce
Internet
World Wide Web
H T M L
Deep Web vs “surface” Web
Mobile platform
Mobile apps
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Eight unique features of E-commerce
technology
Copyright © 2017 Pearson Education Ltd.
Slide 4-12
Eight unique features of E-commerce
technology
 Ubiquity
 Be
available just about everywhere, at all
times
 Liberate the market from being restricted to a
physical space and makes a marketspace
 Reduce transaction cost
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Slide 4-13
Eight unique features of E-commerce
technology
 Global reach
 Permit
commercial transactions to cross
cultural, regional, and national boundaries
 Potential market size = world’s internet users
(4,6 billion people in March 2020)
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Slide 4-14
Eight unique features of E-commerce
technology
 Universal Standards
 Technical
standards for conducting ecommerce are universal standard –shared by
all nations.
 Lower market entry costs for merchants.
 Reduce search cost for consumers.
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Slide 4-15
Eight unique features of E-commerce
technology
 Information richness
 Refer
to the complexity and content of a
message
 Trade-off between richness and reach
 Have the potential to offer more information
richness to a much larger audience. Ex:
Deliver rich message with video and text to
consumers.
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Slide 4-16
Eight unique features of E-commerce
technology
 Information density
 Increase
information density—the total
amount and quality of information available to
all market participants
 Price & cost transparency
 Enable merchants to engage in price
discrimination
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Slide 4-17
Eight unique features of E-commerce
technology
 Interactivity
 Enable
two-way communication between
merchant and consumer and among
consumers
 Social network and mobile devices help online
merchants to engage customers.
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Slide 4-18
Eight unique features of E-commerce
technology
 Personalization/Customization
 Personalization:
Target marketing messages
to specific individuals by adjusting the
message to a person’s name, interests, and
past purchases
 Customization: Change the delivered product
or service based on a user’s preferences or
prior behavior.
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Slide 4-19
Eight unique features of E-commerce
technology
 Social technology
 Allow
users to create and share content with a
worldwide community.
 Support social networks
 Change one-to-many model to many-to-many
model of mass communication.
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Slide 4-20
Type of E-commerce
 Business-to-Business (B2B):
 Online businesses focus on selling to other
businesses
 2 primary B2B business models: Net
marketplaces and private industrial networks.
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Slide 4-21
Type of E-commerce
 Business-to-Consumer (B2C):
 Online businesses attempt to reach individual
consumers.
 Including purchases of retail goods, travel
services, and online content.
 7 different B2C business models: portals, online
retailers, content providers, transaction
brokers, market creators, service providers, and
community providers.
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Slide 4-22
Type of E-commerce
 Customer-to-Customer (C2C):
 Consumers sell to each other with the help of an
online market maker (eBay, Airbnb).
 Customer-to-Business (C2B):
 Consumers provide services or products that
appeal to businesses (Google AdSense,
Agricultural product manufacturer)
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Slide 4-23
Type of E-commerce – The new wave
 Mobile E-commerce (M-commerce):
 Use of mobile devices to enable online
transactions (mobile banking, in-app purchase)
 Social E-commerce:
 E-commerce enabled by social networks and
online social relationships
 Local E-commerce:
 Local merchants use a variety of online
marketing techniques to drive local consumers
to their stores.
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Slide 4-24
Figure 1.7 The Growth of B2B E-commerce in the United States
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Figure 1.5 The Growth of B2C E-commerce in the United States
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Figure 1.8 The Growth of M-commerce in the United States
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E-commerce: A Brief History
1995–2000: Invention
Sale of simple retail goods
Limited bandwidth and media
Euphoric visions of
Friction-free commerce
First-mover advantages
Dot-com crash of 2000
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E-commerce: A Brief History
2001–2006: Consolidation
Emphasis on business-driven approach
Traditional large firms expand presence
Start-up financing shrinks
More complex products and services sold
Growth of search engine advertising
Business web presences expand
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E-commerce: A Brief History
2007–Present: Reinvention
Rapid growth of:
Web 2.0, including online social networks
Mobile platform
Local commerce
On-demand service economy
Entertainment content develops as source of
revenues
Transformation of marketing
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Figure 1.10 Periods in the Development of E-commerce
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Insight on Business: Rocket Internet
Class Discussion
What are the benefits of investing in a company
that Rocket Internet has launched?
Is an incubator the best solution for start-ups to
find funding? Why or why not?
Why is Rocket Internet controversial?
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Understanding E-commerce: Organizing
Themes
Technology:
Development and mastery of digital computing
and communications technology
Business:
New technologies present businesses with new
ways of organizing production and transacting
business
Society:
Intellectual property, individual privacy, public
welfare policy
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Academic Disciplines Concerned with
Technology
Technical
Computer science, management science,
information systems
Behavioral
Information systems research, economics,
marketing, management, finance/accounting,
sociology
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