E-Commerce Five Cs Overview

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.

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.