E-Commerce Five Cs Overview

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Questions and Answers

What percentage of online retail sales did social commerce represent in 2020?

5.0%

4.2%

2.5%

3.4% (correct)

How many people globally were estimated to be shopping online?

3 billion

1.5 billion

2.64 billion (correct)

4 billion

What is the projected size of social commerce sales by 2025?

$800 billion

$1.5 trillion

$1.2 trillion (correct)

$1 trillion

What was the annual growth rate of mobile payments since 2020?

22% Signup and view all the answers

What significant shift in retail is highlighted in the content?

Shift from physical shops to online shops Signup and view all the answers

What percentage of shoppers indicated their mobile e-commerce experience could be improved?

90% Signup and view all the answers

Which factor significantly contributed to the boom in e-commerce during the pandemic?

People spending more time at home Signup and view all the answers

What is the main benefit of a launch promotion using sponsored posts or ads?

It boosts brand awareness Signup and view all the answers

What is a crucial aspect of an e-commerce website that mirrors a physical store?

Intuitive user experience Signup and view all the answers

Why is defining your e-commerce business model important before building a website?

To understand target markets and offerings Signup and view all the answers

Which e-commerce business model involves selling products directly to consumers without intermediaries?

Direct-to-consumer (D2C) Signup and view all the answers

What is a significant advantage of the drop shipping model?

It is quick and inexpensive to start Signup and view all the answers

What does a successful e-commerce website need to accomplish for its customers?

Create an enjoyable and seamless shopping experience Signup and view all the answers

Which of the following is NOT an e-commerce business model discussed?

Platform-to-business (P2B) Signup and view all the answers

What is the predicted value of online entertainment by 2027?

$652.5 billion Signup and view all the answers

When choosing an e-commerce platform, what is an important consideration?

The platform's security features Signup and view all the answers

What growth rate did home repair tools experience in 2020?

8 Signup and view all the answers

Which is a key design principle for an outstanding e-commerce website?

Keep it simple Signup and view all the answers

What primary purpose does merchandising serve in e-commerce?

To display products effectively and attractively Signup and view all the answers

What percentage of Shopify traffic comes from mobile devices?

79 Signup and view all the answers

What aspect of customers' preferences should be considered in e-commerce design?

Think like a website visitor Signup and view all the answers

How much did outdoor living furnishings and gardening equipment sales grow in 2020?

9 Signup and view all the answers

What should be prioritized when designing an e-commerce website?

Branding Signup and view all the answers

What is a primary characteristic of e-commerce websites?

They facilitate buying and selling over the internet Signup and view all the answers

What is the primary function of Commerce in the context of E-Commerce?

Matching customers with suppliers and establishing transaction terms Signup and view all the answers

How does Computation contribute to E-Commerce?

By allowing for the large-scale sharing of computational and storage resources. Signup and view all the answers

What distinguishes E-Business from traditional business models?

E-business incorporates both customer service and collaboration. Signup and view all the answers

What is a defining characteristic of Connection in the domain of E-Commerce?

Utilization of common software platforms that enable various firms to collaborate. Signup and view all the answers

What role does Communication play in E-Commerce?

It allows users to express themselves through various media products. Signup and view all the answers

How does Collaboration manifest on the Web?

Through networking individuals engaged in knowledge work Signup and view all the answers

How did IBM contribute to the evolution of E-Business?

By launching a campaign that first popularized the term 'e-business'. Signup and view all the answers

Which of the following best describes the concept of utility computing in E-Commerce?

Enabling the sharing of resources for computational tasks. Signup and view all the answers

What does the E-Commerce Act of 2000 primarily aim to establish?

Legal framework for electronic transactions Signup and view all the answers

Which of the following is recognized as having the same legal standing as traditional contracts under the E-Commerce Act of 2000?

Electronic signatures Signup and view all the answers

What is the main focus of the Data Privacy Act of 2012?

Protecting individuals' personal information Signup and view all the answers

Which type of cybercrime involves unauthorized attempts to access e-commerce systems?

Illegal access/hacking Signup and view all the answers

What does the Cybercrime Prevention Act of 2012 provide a legal framework for?

Investigation and prosecution of cybercrimes Signup and view all the answers

Computer-related fraud in e-commerce may involve which of the following?

Manipulated transaction records Signup and view all the answers

Which act specifically outlines the rights of individuals regarding their personal data?

Data Privacy Act of 2012 Signup and view all the answers

In the context of e-commerce, what is data interference?

Intentionally modifying or tampering with data Signup and view all the answers

Study Notes

E-Commerce

Defined by five "Cs"
- Commerce: Matching customers with suppliers, establishing transaction terms and facilitating exchange. Modern, web-enabled enterprise systems have created universal supply chain linkage.
- Collaboration: The web is a network where firms and individuals connect, creating formal and informal collaborations. Web-based collaboration reduces limitations of space, time, national boundaries, and organizational affiliations.
- Communication: The web is an interactive medium, leading to a diverse range of media products. It is a forum for self-expression, through blogs and self-presentation. M-Commerce enables connectivity in context, with location-sensitive products and advertising.
- Connection: Common software development platforms, including open-source ones, empower diverse businesses to leverage pre-developed software compatible with their trading and collaboration partners. The Internet is the universal telecommunication network, expanding rapidly in the mobile domain.
- Computation: Internet infrastructure facilitates large-scale sharing of computational and storage resources, realizing the concept of utility computing.

E-Business

First used by IBM in 1997.
Encompasses business activities on the internet beyond just buying and selling, including customer service, collaborating with business partners, and intra-business tasks.
It is the transformation of key business processes through internet technologies.

E-Commerce Website

A virtual storefront for customers.
Should reflect the tone and voice of the brand.
User experience should be intuitive.
Displays product offerings and brand identity, linked to social media and digital content to boost sales.

Types of E-Commerce Business Models

Business-to-customer (B2C): The most common model, selling products/services directly to consumers.
Business-to-business (B2B): Businesses selling products/services to other businesses.
Customer-to-customer (C2C): Online marketplaces connecting consumers to exchange and sell goods/services.
Customer-to-business (C2B): Individuals selling goods/services to companies.
Direct-to-consumer (D2C): Selling products directly to customers, bypassing wholesalers/retailers.
Drop shipping: A storefront (website) where customers pay via credit card/Paypal, with a supplier managing inventory and packaging. Quick and inexpensive to start.
Wholesaling: Purchasing products in bulk at discounted rates from a retailer.
White label: Putting your name and brand on a generic product purchased from a distributor.
Private label: Hiring a manufacturer to create a product for exclusive sale by your business.
Subscription: Delivering products (e.g., pet food, vegetable boxes) on a regular schedule to loyal customers seeking convenience.

Building an E-Commerce Website

Choose an e-commerce platform to host your website.
Launch promotions using sponsored posts/ads to boost brand awareness and penetrate your target audience.

E-Commerce Selling Statistics

Shift from Physical to Online Retail: Over 2.64 billion globally shop online, demonstrating the rising importance of e-commerce in retail.
Mobile Payment Boom: Mobile payment adoption increased 22% annually since 2020.
Social Commerce Growth: Social commerce, selling directly through social media platforms like Facebook and Instagram, was 3.4% of all online retail sales in 2020 and is projected to reach $1.2 trillion by 2025.

E-Commerce Trend Statistics

Mobile E-Commerce Improvement: Over 90% of shoppers believe their mobile e-commerce experience could be better.
Entertainment Growth: Online entertainment spending is projected to increase significantly, reaching $652.5 billion by 2027.
Household Goods Growth: DIY home projects and associated tools/products saw increased sales during the pandemic. Home repair tools and online equipment retailers grew 8% in 2020. Outdoor living furnishings and gardening equipment sales grew 9% in 2020.

E-Commerce Market Leader Statistics

E-Commerce Platforms:
- Shopify: 79% of their traffic is from mobile devices, indicating their commitment to a strong mobile experience.
- Shopify also has a large app store for businesses to expand functionality.
E-Commerce Marketplaces :
- Dominate online shopping
- A table of the most visited e-commerce stores by monthly traffic is provided in the original text.

Why Create an E-Commerce Website?

Revolutionized retail and commerce.
E-commerce refers to buying and selling goods/services using the internet.
Online shopping has become integral to modern business practice.
E-commerce websites provide a convenient and accessible virtual marketplace, allowing for global transactions with just a few clicks.

Tips for Outstanding E-Commerce Website Design

Simplicity: Keep it simple (KISS - Keep it Simple, Silly!).
Branding: Make branding a priority, to differentiate your website from faceless e-commerce sites.
User Perspective: Think like a website visitor to create a design that will connect with your audience.

Philippine Laws Relevant to E-Commerce

E-Commerce Act of 2000 (Republic Act No. 8792): Provides the legal framework for electronic transactions. Promotes e-commerce and protects online business operations.
Data Privacy Act of 2012 (Republic Act No. 10173): Protects individual's personal information by regulating its collection, handling, storage, and disposal.
Cybercrime Prevention Act of 2012 (Republic Act No. 10175): Addresses various cybercrimes, including hacking, identity theft, and online fraud.

Examples of Cybercrimes in E-Commerce Covered by the Act

Computer-Related Fraud: Manipulating data or systems to gain an unfair advantage or financial gain.
Illegal Access/Hacking: Unauthorized access to computer systems, potentially targeting e-commerce platforms to steal sensitive data.
Data Interference: Intentionally modifying, removing, or tampering with data to interfere with e-commerce operations.

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Description

Explore the five foundational 'Cs' of e-commerce: Commerce, Collaboration, Communication, and Connection. This quiz highlights the essential roles these concepts play in shaping modern online business practices and interactions. Test your knowledge on how each element contributes to an effective e-commerce strategy.