E-Commerce
(EC): describes
the process of buying, selling, transferring or exchanging of products,
services or information via computer networks, including the Internet.
E-business: is
a broader definition of EC, including
buying and selling of goods and services
servicing customers
collaborating with partners
conducting e-learning
conducting electronic transactions
within an organization.
Pure versus Partial EC depends on the degree of digitization
involved:
The product can be physical or digital.
The process can be physical or digital.
The delivery agent can be physical or
digital
Brick-and-mortar:
purely physical organizations
Click-and-mortar:
organizations are those that conduct some
EC activities,
yet their business is
primarily done in the physical world
Pure Play: organizations
that are engaged only in EC
Bricks
and Mortar, Partial EC, and Pure EC
Types
of E-Commerce
Business-to-Consumer
(B2C): the sellers are organizations and the
buyers are individuals
Business-to-Business
(B2B): both the sellers and buyers are business
organizations
Consumer-to-Consumer
(C2C): both
the sellers and buyers are individuals
Business-to-Employee (B2E): An
organization uses e-commerce internally to provide information and services to
its employees.
E-Government (E-Gov.): the
use of Internet technology to deliver information about public services to
citizens (Government-to-Citizen [G2C]), business partners and suppliers (called
government-to-business [G2B]) and between governments [G2G].
Mobile
Commerce (m-commerce):
e-commerce that is conducted using a
mobile phone
E-Commerce
Business Models
Online
Direct Marketing: manufacturers
sell directly to
customers
Electronic
Tendering
System: businesses
(or governments) request quotation from suppliers [uses B2B or G2B]
E-auction – an auction which is held over the Internet
Name-your-own-price: customers decide how much they want to
pay
Find-the-best-price:
customers specify a need and an
intermediary compares providers and shows the lowest price
Different Types of E Commerce Business Models
Affiliate marketing:
Vendors ask partners to place logos or
banners on partner’s site. If customers click on logo, go to the vendor’s site,
and buy, then the vendor pays commission to partners.
Viral
marketing:
receivers send information about your
product to their friends.
Group
purchasing: small
buyers aggregate demand to get a large volume
discount [E-Coops]
Product
customization: customers
use the Internet to self-configure products or services.
Sellers then price them and fulfill them quickly.
Benefits
of E-Commerce
Benefits
to organizations
Makes
national and international markets more accessible
Lowering
costs of processing, distributing, and retrieving information
Benefits
to customer
Access
a vast number of products and services around the clock (24/7/365)
Benefits
to SocietyAbility
to easily and conveniently deliver information, services and products to people
in cities, rural areas and developing countries
Limitations
of E-Commerce
Technological
Limitations
Lack
of universally accepted security standards
Insufficient
telecommunications bandwidth
Expensive
accessibility
Non-technological
Limitations
Perception
that EC is unsecure
Unresolved
legal issues
Lacks
a critical mass of sellers and buyers
Business-to-Consumer
B2C
Electronic
retailing (E-tailing): the direct sale of products and services
through the Internet
E-marketplace: a
central, virtual market space on the Web where many buyers and sellers can
conduct E-commerce and E-Business activities
E-storefront: a
Web site that represent a single store
Online
Service Industries
Cyberbanking: involves conducting banking activities
from home, a place of business or on the road instead of at a physical bank
location.
E-Bank
/ virtual Bank/ Cyber Bank:
a bank that is dedicated only to Internet transactions
Online
job market
The internet offers promising new
environment for job seekers and for companies searching for hard-to-find
employees.
Travel
services
The internet is an ideal place to plan,
explore and arrange almost any trip economically
Issues
in E-Tailing
Channel conflict: occurs when manufacturers disintermediate their channel partners such as
distributors, retailers, dealers, and sales representatives, by selling their
products directly to consumers, usually over the Internet through e-commerce
Multichanneling: is
a process in which a company integrates its offline and online channels.
Order
fulfillment: finding
the product to be shipped; packaging the
product; arrange for speedy delivery to the customer; and
handle the return of unwanted or defective products.
Online
Advertising
Advertising : an
attempt to disseminate information in order to influence a buyer-seller
transaction.
Online Advertising methods
Banner:
simply electronic billboard
Pop-up ad :
appears in front of the current browser window.
Pop-under ad: appears underneath the active window.
Permission marketing: asks consumers to give their permission
to voluntarily accept online advertising and e-mail.
Viral marketing: refers to online “word-of-mouth”
marketing
Business-to-Business
(B2B)
In B2B e-commerce, the buyers and sellers are
organizations
There are several business models for B2B
applications:
B2B Sell-Side Marketplace
B2B Buy-Side Marketplace
Electronic Exchanges
Electronic
Exchanges
Electronic Exchanges
Vertical Exchanges: connects
buyers and sellers in a given industry
Horizontal Exchanges: connects buyers and sellers across many
industries, and are used mainly for MRO materials
Functional Exchanges: needed services
such as temporary help or extra office
space are traded on an “as-needed” basis
Electronic
Payments
Purchasing card: is the B2B equivalent of electronic
credit cards and is typically used for unplanned B2B purchases
Ethical
and Legal Issues
Privacy: ecommerce
provides opportunities for businesses to track online consumers using cookies
or special spywar
Cybersquatting refers to the practice of registering
domain names solely for the purpose of selling them later at a higher price.
Taxes
and other Fees: when and where (and in some cases
whether) electronic sellers should pay taxes
Copyright:
protecting intellectual property in
e-commerce and enforcing copyright laws is extremely difficult
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