E-Commerce Lecture Notes PDF

INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY E - Commerce Lecture 11  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY TOPICS to be COVERED 11.1 E – Commerce 11.2 Advantages and Disadvantages of E – Commerce 11.3 E – Commerce B...

INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY E - Commerce Lecture 11  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY TOPICS to be COVERED 11.1 E – Commerce 11.2 Advantages and Disadvantages of E – Commerce 11.3 E – Commerce Business Models  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY UNIT 11.1  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY What is E – Commerce? E – Commerce: Act of doing business transactions over the Internet or similar technology. – Has existed for years via private networks (electronic funds transfers, etc.). – Now most often performed via the Internet. Dot-com: An internet-only store with no physical presence. Brick-and-mortar store: A conventional store with a physical presence. M-commerce: E-commerce carried out via phones and other mobile devices – Near Field Communications (NFC) uses RFID.  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY UNIT 11.2  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY Advantages of E - Commerce Advantages for Businesses: Reduced Costs – Dot-coms are less expensive than brick-and-mortar stores because there is no physical storefront to maintain. Increased Customer Satisfaction – If shopping experience is convenient (open all the time, no driving, etc.). – Can send customers personalized information. Broader Customer Base (Less Geographical Restriction Potentially Higher Sales  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY Advantages of E - Commerce Advantages for Customers: Convenience Easier comparison shopping ‒ Higher number of merchants to choose from. ‒ Geographical location is not an issue. ‒ Shopping bots and other comparison shopping tools are available. Higher degree of selection Potential cost savings Customized products  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY Disadvantages of E - Commerce Disadvantages for Businesses: Pressure to be always open, site always working ‒ Solid, well designed sites and hosting. Lost business due to some customer hesitation to shop online Risk of fraudulent credit card transactions Ease of entry for competitors  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY Disadvantages of E - Commerce Disadvantages for Customers: Potential for Fraud and Other Potential Security Problems ‒ Buyer protection programs and using credit card protection can help. Not Being Able to See or Touch the Goods ‒ 3D online stores may help Possible Expense of Returning Merchandise ‒ Some brick and mortar stores allow returns to local stores  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY UNIT 11.3  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY E – Commerce Business Models Business – to – Consumer (B2C) Model: An E – Commerce model in which a business provides goods or services to consumers. Digital Gift Certificates, Gift Cards, and Coupons: Appropriate codes are entered into the Web site at time of purchase. Digital Wallet: Holds a buyer’s information that can be used to speed up online purchase transactions. – Online digital wallets (Google Checkout). – Store this information for each customer on a business’s Webserver for use with purchases on that site only. For example: Amazon.com and BestBuy.com.  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY E – Commerce Business Models Business – to – Consumer (B2C) Model:  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY E – Commerce Business Models Business – to – Business (B2B) Model: An E – Commerce model in which a business provides goods or services to other businesses. For example: www.alibaba.com Special B2B considerations because of the volume of B2B transactions. B2B Transaction Processing: Allows merchants to customize their payment processing plans to fit their needs. ‒ Can process payments, do credit checks, track expenses, do billing, etc. Order – Fulfillment Companies: Take care of physically filling orders for a business. ‒ Can provide order management, CRM services, marketing tools, etc.  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY E – Commerce Business Models Business – to – Business (B2B) Model:  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY E – Commerce Business Models Consumer – to – Consumer (C2C) Model: An E – Commerce model in which a consumer provides goods or services to other consumers. For example: www.olx.com and ebay.com  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY E – Commerce Business Models Business – to – Government (B2G) Model: An E – Commerce model in which a business provides goods and services to government organizations. For example: www.fbr.gov.pk  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY Categories of Transactions in E – Commerce  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY E – Commerce Business Models  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY E – Commerce Business Models  INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY Thank you