Introduction To E-Commerce Lecture PDF

INTRODUCTION TO E-COMMERCE What is Commerce?  Commerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumer.  It comprises the trading of something of economic value such as goods, services, information or mone...

INTRODUCTION TO E-COMMERCE What is Commerce?  Commerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumer.  It comprises the trading of something of economic value such as goods, services, information or money between two or more entities.  Commerce primarily express the fairly abstract notions of buying and selling. E-COMMERCE E-commerce refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, the term may refer to more than just buying and selling products online. It also includes the entire online process of developing, marketing, selling, delivering, servicing and paying for products and services. E-COMMERCE  It refers to a financial business transaction that occurs over an electronic network.  It allows consumers to electronically exchange goods and services with no barriers of time or distance. ADVANTAGES OF E-COMMERCE  Global market all day  Can access simply and browse naturally, with no technology-related difficulties  Customers can compare prices easily  Save time and money finding and purchasing goods  Meet the consumer’s purchasing needs within the framework of a satisfying process ADVANTAGES OF E-COMMERCE  Feedback can be immediate  Changing information can be available quickly  Ability to gather customer information, analyze, and react it  New and traditional approaches to generating revenue  Manufactures can buy and sell directly, avoiding the cost of the middleman ADVANTAGES OF E-COMMERCE  Distribution costs for information is reduced or eliminated  Options to create a paperless environment  Increased Access  Convenience  Expansion Disadvantages of E-commerce?  Security  Tax to the government  Internet Technology  Trust Traditional Business Vs. E-Commerce Comparison between E-commerce and Traditional Commerce Traditional  Face to Face  Printed & written documents  Telephone communication  Postal mail  Payment by Cash, Check  Ads: print med, radio, TV  Merchandize deliver immediately  Customer takes merchandise home Comparison between E-commerce and Traditional Commerce E-Commerce  No personal contact  Documents on the web  Web pages personalized for a particular customer  E-mail or webmail communication  Ads on web, radio, TV  Payment: credit card, direct withdrawal, fund transfer (paypal)  Merchandise deliver home 2-5 days Types of E-commerce The major different types of e-commerce are: o Business-to-Business(B2B) o Business-to-Consumer (B2C) o Consumer-to-Business (C2B) o Business-to-Government (B2G) o Consumer-to-Consumer (C2C) o Mobile commerce (M-commerce) Business-to-Business(B2B) B2B e-commerce is simply defined as e-commerce between companies. Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable. Examples of B2B E-Commerce  Importers.com  TradeKey.com  Alibaba.com  Made-in-China.com   Busytrade.com EC21.com  DIYtrade.com  ECplaza.com  TradeIndia.com  GlobalSources.com  India-Mart.com Business-to-Consumer(B2C)  B2C e-commerce reduces transactions costs  Modifying the cost of the product is reduced as we can eliminate the middle men  Major thing in B2C model is customer care Business-to-Consumer(B2C) Business-to-consumer e-commerce, or commerce between companies and consumers, involves customers gathering information; purchasing physical goods (i.e., tangibles such as books or consumer products) or information goods (or goods of electronic material or digitized content, such as software, or e-books); and, for information goods, receiving products over an electronic network. Business-to-Consumer(B2C) Pre-Cautions of B2C E-commerce  Check for digital certificates of the site and it hacker free.  Check for shipping price.  See the previous service going through the reviews of the old customers  Purchasing with the appropriate cards. Some of the examples of the B2C model are:  www.llbean.com  www.landsend.com  www.bestbuy.com  www.sony.com  www.dell.com  www.amazon.com  www.store.microsoft.com Consumer-to-Business(C2B) A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Business-to-Government(B2G) Business-to-government e-commerce or B2G is generally defined as commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations. Examples of B2G E-commerce are:  www.fcw.com  www.washingtontechnology.com  www.Gcn.com  www.signalmag.com  www.governmnmentexecutive.com Consumer-to-Consumer(C2C) Consumer-to-consumer e-commerce or C2C is simply commerce between private individuals or consumers. This type of e-commerce is characterized by the growth of electronic marketplaces and online sales, particularly in vertical industries where firms/businesses can bid for what they want from among multiple suppliers. Consumer-to-Consumer(C2C) This type of e-commerce comes in at least three forms: Auctions facilitated at a portal, such as eBay, which allows online real-time bidding on items being sold in the Web. Peer-to-peer systems, such as the Napster model (a protocol for sharing files between users used by chat forums similar to IRC) and other file exchange and later money exchange models. Classified ads at portal sites such as Excite Classifieds and eWanted (an interactive, online marketplace where buyers and sellers can negotiate and which features “Buyer Leads & Want Ads”). Examples of C2C E-commerce are:  www.ebay.com  www.napster.com M-commerce M-commerce (mobile commerce) is the buying and selling of goods and services through wireless technology-i.e., handheld devices such as cellular telephones and PDAs. Other Forms of E-commerce Business-to-Employee Government-to-Government Government-to-Employee Government-to-Business ROLES OF E-COMMERCE  Reduce transaction cost  Can make networks.  Improvement of existing markets and the creation of completely new markets. REQUIREMENTS IN BUILDING E-COMMERCE Federal Trade Commission (FTC) is the primary agency that regulates ecommerce activities. This includes regulations for a number of ecommerce activities such as commercial email, online advertising and consumer privacy. PCI (Payment Card Industry) Security Standards Council This organization provides security standards and regulations for handling and storing your customer’s financial data. REQUIREMENTS IN BUILDING E-COMMERCE  Protecting Your Customer's Privacy Online  Online Advertising Compliance  How to Collect Taxes Online  How to Handle Customer Financial Data  INTERNATIONAL NATURE OF E-COMMERCE Trust Issues Language Culture  Importance to  “Think Globally,  Business establish a Act Locally” partners ideally trusting  Provide local have a common relationship with language version legal structure the customer or regional for resolving dialect Spanish, disputes. The brand What Brand? conveys some German, Japanese, expectations Chinese, Italian, about how the French, Korean, company will Portuguese, behave. Dutch, Russian, Swedish On top of the international issues is INFRASTRUCTURE ISSUES TERMINOLOGIES Web Development COMPUTER NETWORK - It is any technology that allows people to connect computers to each other. Network shares resources and information. TERMINOLOGIES Web Development INTERNET - It is a worldwide collection of computer networks that links together millions of computers used by businesses the government, educational institutions, organizations and individuals using modems, telephone lines, television cables, and other communications devices and media. TERMINOLOGIES Web Development WORLD WIDE WEB - It is a subset of computers on the internet that are connected to one another in a specific way that makes them and their contents easily accessible to each other. TERMINOLOGIES Web Development BUSINESS MODEL - Is a set of processes that combine to yield a profit. MERCHANDISING - This is the combination of store design, layout, and product display knowledge. TERMINOLOGIES Web Development TRANSACTIONS - Is an exchange of value, such as a purchase, sale, or the conversion of raw materials into a finished product. COMMODITY ITEM - Is a product or service that is hard to distinguish from the same products or services provided by other sellers. TERMINOLOGIES Web Development SHIPPING PROFILE - Is the collection of attributes that affect how easily that product can be packaged and delivered. VIRTUAL COMMUNITY - Is a gathering of people who share a common interest, but instead of this gathering occurring in the physical world, it takes place on the internet. TERMINOLOGIES Web Development INTERNET SERVICE PROVIDER - Sometimes referred to as an Internet Access Provider (IAP) - It is a company that offers its customers access to the internet The ISP connects to its customers using a data transmission technology appropriate for delivering internet protocol packets or frames, such as dial-up, DSL, cable modem, wireless or dedicated high-speed interconnects. TERMINOLOGIES Web Development WEB SERVER - It is a computer that stores files written in the hypertext markup language and lets other computers connect to it and read these files. These are Hypertext servers. DOMAIN NAMES - These are the set of words that are assigned to specific IP addresses. General Top-level Domain Names.aero air-transport industry.asia Asia-Pacific region.biz business.cat Catalan.com commercial.coop cooperatives.edu educational.gov governmental.info information.int international organizations DOMAIN NAMES.jobs companies.mil US military.mobi mobile devices.museummuseums.name individuals, by name.net network.org organization.pro professions.tel Internet communication services.travel travel and tourism industry related sites COUNTRY DOMAIN NAMES.ae United Arab Emirates.af Afghanistan.ao Angola.ar Argentina.at Austria.au Australia.bd Bangladesh.ch Switzerland.de Germany.fr France.my Malaysia ELECTRONIC MAIL - Mail that is sent across the internet must also be formatted according to a common set of rules. E-mail Server is devoted in handling emails. Examples: Microsoft Outlook, Mozilla Thunderbird, Netscape Messenger, Pegasus Mail, Qualcomm Eudora HYPERTEXT TRANSFER PROTOCOL(HTTP) - Set of rules for delivering web page files over the internet. UNIFORM RESOURCE LOCATOR(URL) - The combination of protocol name and the domain name. Example: http://www.example.com/ WORLD WIDE WEB CONSORTIUM - A not-for-profit group that maintains standards for the web. HYPERTEXT MARKUP LANGUAGE(HTML) - written in the form of HTML elements consisting of "tags" surrounded by angle brackets (like ) within the web page content. HTML tags normally come in pairs like and. The first tag in a pair is the start tag, the second tag is the end tag (they are also called opening tags and closing tags). WEB PAGE - is a document or information resource that is suitable for the WWW and can be accessed through a web browser and displayed on a monitor or mobile device. WEBSITE - is a collection of related web pages, images, videos or other digital assets that are addressed relative to a common URL, often consisting of only the domain name, or the IP address, and the root path ('/') in an IP-based network.