Unit 1 Introduction to ECommerce

8/12/2019 Unit 1 Introduction to ECommerce

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Unit 1: Introduction to E-Commerce

International E-Commerce


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Learning Objectives Define the value and meaning of e-

commerce and their different elements.

Know the evolution of e-commerce.

Understand different e-commercemodels.

Identify several advantages of e-commerce.


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Definition of

E-Commerce (EC)

By intuition, it is buyingand sellingusing the Internet

It should be electronically mediated

financial transactions betweenorganizationsand customers.


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Definition of

E-Commerce (EC)

E-commerce is the purchasing , selling& exchanging goods and services overcomputer network or internet through

which transactionsor terms of sale areperformed electronically.


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The Process of E-Commerce

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Element of E-commerce There are certain elements required to

perform online business.

Promote your Web site presence.

Have an online catalog or store.

Have the capability to receivepayments.

Be able to deliver the item.

Provide after-the-sale support.


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Why use E-Commerce? Low entry cost.

Reduces transaction cost.

Acces to the global market.

Secure Market Share.

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Brief History of E-Commerce

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1970s: Electronic Funds Transfer (EFT)

Late 1970s and early 1980s: Electronic Data

Interchange (EDI) for e-commerce withincompanies

1990s: the World Wide Web on the Internetprovides easy-to-use technology for information

publishing and dissemination


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E-Commerce (First Period)

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E-commerce in the period of 19952000 isknown as e-commerce1

E-commerce 1 refers to that period in which ,first widespread use of the web was their toadvertize a product

Period in which companies started to invest invarious e-commerce sectors

Ended in 2000 when stock market for dotcompanies has begin to collapse


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E-Commerce (Second Period)

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E-commerce2 refers to the second period in theevolution of e-commerce from 20012006.

Period in which concept of one world , onemarket, one price has weakened.

Companies introduced new ways to differentiate

their product and services.Ex: price on books and cd`s vary by 20% and50% respectively.


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Models of E-commerce

Transaction Based on e-commerce transactions

between two types of parties, we may

be able to define different business orconsumer models.


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B2B Business-To-Business. A transaction

that occurs between two companies, as

opposed to a transaction involving aconsumer.

The term may also describe a company

that provides goods or services foranother company.

About 80% of e-commerce is of this

type.


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B2B Examples:

Intel selling microprocessorto Dell Heinz selling ketchup to Mc Donalds
http://www.blurtit.com/q495376.htmlhttp://www.blurtit.com/q495376.html


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B2B examples

Examples


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B2C

Business-to-consumer (B2C, sometimesalso called Business-to-Customer)

describes activities of businessesserving end consumers with productsand/or services.

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B2C

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Businesses selling to the general publicthrough catalogs using shopping cart

software. B2C e-commerce reduces costs.

B2C allowing consumers to find the

most competitive price for a product orservice.


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B2C examples

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C2C

Consumer-to-consumer (C2C) (orcitizen-to-citizen) electronic commerce

involves the electronically-facilitatedtransactions between consumersdirectlyor through some third party.


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C2C example

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C2B

Consumer-to-business (C2B) is anelectronic commerce business model in

which consumers (individuals) offerproducts and services to companies andthe companies pay them.


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More

B2E: Business-to-employee B2G: Business-to-government

G2G: Government to government

G2C: Government to Citizen

G2B: Governmet to Business


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Key Technology InfrastructureComponent


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Hardware

Storage capacity and computing powerrequired of the Web server depends on:

Software that will run on the server

Volume of e-commerce transactions

Website hosting


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Web Server Software

Security and identification

Web sites must be designed to protect againstattacks

Denial-of-service (DOS) attack

Retrieving and sending Web pages

Web site tracking


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Web Server Software(continue) Web site development

Web page construction

Static Web page

Dynamic Web page


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E-Commerce Software Catalog management

Product configuration

Shopping cart facilities

E-commerce transaction processing

Web traffic data analysis


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Advantage of E-commerce

Faster buying/selling procedure, as well as easyto find products.

Buying/selling 24/7. More reach to customers, there is no theoretical

geographic limitations.

Low operational costs and better quality ofservices.

No need of physical company set-ups.


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Advantage of E-commerce

Easy to start and manage a business.

Customers can easily select products from

different providers without moving aroundphysically.


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Reference

Chaffey, D, E-Business and E-ComerceManagement, Prentice Hall, Chapter 1

Turban, E., et al., 2008, ElectronicCommerce: A Managerial Perspective,

Prentice Hall, Chapter 1, 2.

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Documents

Unit 1 Introduction to ECommerce