E-Commerce PDF

Not in reviewer- NOR Commerce -Basic economic activity involving trading or the buying and selling of goods. -According to Standard Dictionaries E-Commerce -Also known as electronic commerce -refers to the buying and selling of goods and services over the internet. -It involves the use of ele...

Not in reviewer- NOR Commerce -Basic economic activity involving trading or the buying and selling of goods. -According to Standard Dictionaries E-Commerce -Also known as electronic commerce -refers to the buying and selling of goods and services over the internet. -It involves the use of electronic platforms, such as websites, mobile applications, and social media, to conduct transactions between businesses and consumers or between businesses. -revolutionized the way businesses operate and has created new opportunities for entrepreneurs and consumers alike. -continued to grow in popularity and importance, particularly in light of the COVID-19 pandemic, which has led to a surge in online shopping as people seek to minimize in-person interactions. As a result, businesses that are able to adapt to the e-commerce landscape are likely to have a competitive advantage in the years to come. -used to refer to the sale of physical products online, but it can also describe any kind of commercial transaction that is facilitated through the internet. First Online Sale (First E-commerce) -Happens in 1994. -Man purchased a cd of in Net Market(American Retail Platform) "Ten Summoners Tale" By Sting -It became a Proof of Secure Transactions,The transaction showed that online purchases could be conducted safely and securely, building consumer trust in e-commerce. Electronic Funds Transfer - Earliest example of e-commerce. -This allows financial institutions to transfer funds between one another in a secure and efficient manner. Electronic Data Interchange(EDI) -Was introduced to facilitate inter business transactions. -Technology that enables the electronic exchange of business documents between organizations in a standardized format. It replaces traditional paper-based communication methods, allowing companies to send and receive documents such as purchase orders, invoices, shipping notices, and other business transactions quickly and accurately. -Has not been as widely deployed as expected due to its systems were typically operated over special networks that are complex to set up and costly to administer. -a kind of teleportation method to transmit business documents from one computer to another. 2 Major Evolutions that Human Experienced 1.Industrial Revolution -Transformed society from being agriculturally based to industrially based. 2.Electronic Revolution -Transformed society from being mechanically based to electronically based. Network Revolution -Interconnects different parts of the world, enabling the seamless flow of information with the Internet as the engine of this revolution and electronic commerce as is it's fuel. 4 Phases of E-commerce Phase 1: E commerce based on EDI (Electronic Data Interchange) - originated in the 60's of 20th Century -Get carried out in the 80's due to large-scaled business enterprise in develop countries. -Began in 80's. --reduces the paper note greatly, people vividly call it as “trade without paper” or “bargain without paper". As it reduces paper work for transactions. -Includes both hardware (mainly the network) and software (mainly software and standard of EDI). -were not transmitted by network until 90's of 20c but by Van(Value Added Network). -needs is a standard software to translate information in the customer databases into the EDI-standard so as to deliver. Because the business enterprise of different professions adopt different format on the basis of their own business characteristics, therefore when transmitting documents, they must be translated into the EDI standard format. Phase 2: E-Commerce based on the Internet. Internet -Functions from information sharing to popular mass media. -Internet becomes popular in the middle of 90's of the 20th century. -After 1991,Business came to the realm of internet and make the e-commerce a big hit in the internet which gives impetus to the rapid development of the internet. -Meets the demands of medium and small sized enterprises to exchange electronic data by overcoming the shortage of EDI. -lower in cost, wider in coverage and better in service. - EDI realized by means of Internet is directly called as “Internet EDI". -In 1995 enterprises have gradually turned to Internet to release information. Therefore, the public can directly access to the enterprise information, goods and services by Internet, which leads to the exploration of information issuing system represented by the technology of Web and becomes the principal application of Internet. This phase is so attractive fo enterpresises due to 1.Low in cost. -The expense of Internet is low, no more than 1/10 of VAN in general. 2) Wide in overlaying. -Internet spreads all over the world, by which trade partners can conveniently send commercial information and documents with common telephone wires. 3.Complete in function. Internet can help different users to carry out their targets of different levels, such as issuing electronic commercial information negotiating online and setting up virtual department stores and online banks etc. 4.Flexible in use. -E-commerce based on Internet is not confined to agreement of special data exchange. Any commercial document can be formed by filing the screen documents that are identical with the current paper documents. Such documents can be understood and used directly by anyone without any translation. Growth of E-Commerce E-Commerce Demonstartion Law -Passed by United Nations Commision 1 Fundamentals of e-Commerce 7 -Happened on International Trade Law : June 14 1996 -Symbolized the beggining of real e-commerce. "Are you Ready For E-Commerce" -Sonorous Advertisement of IBM in 1998 that set up the upsurge of ecommerce all over the world. Early 2000 - E-Commerce is developed to a higher concept e-commerce and realized that e-commerce is in fact the combination of information technology and commerce applications. E-CONCEPT in the Fields 1.Electronic education—remote education, -The combination of electronic information technology and education. 2.Electronic treatment—remote treatment, -The combination of technology and treatment 3.Electronic administration -The combination of technology and administration. 4.Elecronic Command -The combination of technology and command 5.Online banks, -The combination of technology and finance 6.Virtual enterprises -The combination of technology and business organizations. 2 Types of Commerce 1.Physical/Traditional Commerce - transactions take place via contact between humans usually in a physical outlet such as a store. -more suitable for nonstandard goods, perishable goods, expensive goods, and extremely low-value goods -According to Global Reach: most traditional commerce is local or regional—it involves local merchants or national merchants with local outlets. Television, radio stations, and newspapers, for instance, are primarily local and regional institutions with limited but powerful national networks that can attract a national audience. In contrast to e-commerce technology, these older commerce technologies do not easily cross national boundaries to a global audience. 2.E-Commerce -Transactions take place via electronic means. -According to Schneider and Perry , e-commerce is more suitable for standard goods, low-value goods, digital goods, and simple services (i.e. intangible goods), -According to ISO -it is the general term for exchange of information among enterprise and between enterprise and customers. -Began in 1995. On Demand Service E-Commerce 1.Taxify 2.Uber 3.Airbnb 4.Zipjet Uber -Headquartered in San Francisco -Founded in 2009 -Founder: Travis Kalanick and Garrett Camp -Grown over to 900 cities and thousands of smaller ones in 69 countries. E-Business -refers primarily to the digital enabling of transactions and processes within a firm, involving information systems under the control of the firm. -e-business does not include commercial transactions involving an exchange of value across organizational boundaries. -E-commerce primarily involves transactions that cross firm boundaries. E-business primarily involves the application of digital technologies to business processes within the firm. -According to Global Information Infrastructure Committee -defines it as the economical activities using electrical communications, with which people can purchase products, advertise. Different Categories of E-Commerce 1.Internet Commerce -Also known as Web-based Electronic Business -Refers to business transactions over the internet and, in most cases, the transactions are carried out over a web system. Digital Phenomenon -Drivers behind e-commerce Key Drivers D- Data Networks -With the advent of these such as Local Area Networks and the internet,dispersed computing systems can now be connected together. This not only allows seamless flow of information but also opens many new opportunities including e-commerce. I-Intense Competition -In nearly all businesses, competition is becoming increasingly intense. In order to survive, companies are constantly looking for more effective ways to provide better customer services. E commerce is one of the effective ways. G-Globalization -To maintain growth of the profit, many companies are moving to the international market. However one of the major obstacles is the geographic barrier. E commerce provides an effective 'vehicle' for companies to move to the intrrnational mafkwt because theire is no geographic barrier in cybe I-Informatjon Age - As we enter this age, informatiom becomes a valuable asset, Therefore, companies are looking for more effective ways to collect,update and manipulate various types of information particularly for marketing purposes. E commerce facilitates this. T-Technologies - With the advent of technologies, many business ideas can now be realized, Technologies are enabler for e commerce. A-Automation -As the cost labor increases, there is a strong need for companies to look for alternative ways to do the routine work. This is particularly true in handling the myriad paper trasnactions once an order is taken. With electronic messages one can reduce this considrrabley, ecommerce thus provide an attractive solution. L-Low Cost high quality products/services - Has become one of the major business philosphies in the 21st century because of the competitions and high customer expectatuons. Companies are looking for the ways to satisfy these requirements. BOTH -Complex products, such as cars, houses, or high-end machinery, often benefit from a combination of e- commerce and traditional commerce. 2 Types of Internet Commerce 1.Business Focused E-Commerce 2.Consumer Focused E-commerce 1.Network - includes Internet, Intranet, and Extranet. Internet -the foundation of e-commerce and the carrier of commercial business information. -Worldwide network of computer networks built on common standards -Created in the late 1960s to connect a small -number of mainframe computers and their users, the Internet has since grown into the world’s largest network. -In 2019, computers and mobile devices that are connected to internet worldwide is arpund 10 billion to 35 Billion. -Makes it much easier for startup e-commerce merchants within a single country to achieve a national audience than was ever possible in the past. The total number of users or customers an e-commerce business can obtain is a measure of its reach (Evans and Wurster, 1997) Intranet -It means for enterprises to carry out internal affairs. Extranet - it is the link between enterprises and users to carry out commercial activities. 2. E-commerce User. -It includes personal consumers and business consumers Business Consumer -scientifically manages staff, wealth, goods, production, supply and sales by Intranet, Extranet and MIS. Personal consumer -Has access to information and purchases goods by connecting Internet with browsers, set-top boxes, PDA (the personal digital assistance), Visual TV etc. 3.Authetication Authority (CA) -aka certificate authority -The authority recognized by law, is responsible for issuing, managing digital certificates and facilitating parties involved in online sales to identify each other. 4.Distribution center. - It is in charge of sending goods that cannot be delivered on-line to consumers and keeping track of goods flow. 5.Online Banks -It provides the sellers and buyers the traditional bank business, such as settlement, and round-the-clock service. 7.Administration of the commercial activity. -It consists mainly of departments of industry, customs, tax and trade. World Wide Web(The web) -an information system running on Internet infrastructure that provides access to billions of web pages. -Was developed in the early 1990s and hence is of much more recent vintage than the Internet. -The original “killer app” that made the Internet commercially interesting and extraordinarily popular. 2 Types of Web 1.Surface/Visible Web -130 Trillion web pages identified by Google. -only a small part of online content. 2.Deep Web - Subscription content, data bases (government,corporate,medical, legal, academic) Encrypted content. Mobile Platform -provides the ability to access the Internet from a variety of mobile devices such as smartphones and tablets. -Not just a hardware phenomenon. But also ushered in a sea-change in the way people interact with the Internet from a software perspective. Mobile Devices -playing an increasingly prominent role in Internet access. Mobile Commerce (M-Commerce) -Specifically refers to transactions done via a smartphone or mobile device. Using this users can transact anywhere provided that there's a wireless Internet provider available in that area. -Tend to be accomplished with a few clicks is done via a tablet, laptop, or desktop and might involve more time and exploring a company's website. MAJOR TRENDS IN E-COMMERCE  Business 1.Social Networks -Are enabling social e-commerce by providing advertising, search, and Buy buttons that enable consumers to actually purchase products. Technology Mobile Platforms -Drives astronomical growth in mobile advertising, and making true mobile e-commerce a reality. Mobile Messaging Services -Creates an alternative platform that is beginning to be leveragrd for commerce as well. Cloud Computing - intextricably linked to the develoo.ent of the mobile by enabling the storage of consumer content and software. -Other major technological trends include the increasing ability of companies to track and analyze the flood of online data (typically referred to as big data) being produced. The Internet of Things (IoT), comprised of billions of Internet-connected devices, continues to grow exponentially, and will only add to this flood of data in the years to come. Society Internet and Mobile platforms -Provide an environment that allows millions of people to create and share content, establish new social bonds and strengthen existing ones through social network. Privacy -Seems to has lose its meaning due to public online personal profiles -Concerns over commercial and governmental privacy invasion continue to increase. Government - Succesfully moved toward taxation of e-commerce sales. Online Security - Remains as a significant issue as new stories about security breaches,malware,hacking and other attacks emerge seemingly daily. Why should we study E-Commerce? -To be able to perceive and understand the opportunities and risks that lie ahead. To be able to identify the technological, business, and social forces that have shaped, and continue to shape, the growth of e-commerce, and be ready to participate in, and ultimately guide, discussions of e-commerce in the firms where you work. -To be able to analyze an existing or new ideafor an e-commerce business, identify the most effective business model to use, and understand the technological underpinnings of an e-commerce presence, including the security and ethical issues raised, as well as how to optimally market and advertise the business, using both traditional e-marketing tools and social. Unique Features of E-Commerce Technology 1.Marketplace -physical space you visit in order to transact. 2.Ubiquity -available just about everywhere, at all times -In consumer point of view, reduces transaction costs—the costs of participating in a market. To transact, it is no longer necessary that you spend time and money traveling to a market. At a broader level, the ubiquity of e commerce lowers the cognitive energy required to transact in a marketspace. Cognitive energy refers to the mental effort required to complete a task. Humans generally seek to reduce cognitive energy outlays. When given a choice, humans will choose the path requiring the least effort—the most convenient path. 3.Marketspace -Marketplace extended beyond traditional boundaries and removed from a temporal and geographic location. 2.Global Reach Reach -total number of users or customers an e-commerce business can obtain. E-Commerce Technology -permits commercial transactions to cross cultural, regional, and national boundaries far more conveniently and cost effectively than is true in traditional commerce. - Due to this, The potential market size for e-commerce merchants is roughly equal to the size of the world’s online population (an estimated 4 billion in 2020) Universal Standards -standards that are shared by all nations around the world. -universal technical standards of e-commerce greatly lower market entry costs— the cost merchants must pay just to bring their goods to market. At the same time, for consumers, universal standards reduce search costs—the effort required to find suitable products. And by creating a single, one-world marketspace, where prices and product descriptions can be inexpensively displayed for all to see, price discovery becomes simpler, faster, and moreaccurate (Banerjee et al., 2016; Bakos, 1997; Kambil, 1997). With e-commerce technologies, it is possible for the first time in history Richness -the complexity and content of a message. Interactivity -technology that allows for two-way communication between merchant and consumer. -allows an online merchant to engage a consumer in ways similar to a face-to face experience. Information Density -the total amount and quality of information available to all market participants. PERSONALIZATION AND CUSTOMIZATION personalization -the targeting of marketing messages to specific individuals by adjusting the message to a person’s name, interests, and past purchases customization changing the delivered product or service based on a user’s preferences or prior behavior.Given the interactive nature of e-commerce technology, much information about the consumer can be gathered in the marketplace at the moment of purchase. Social Networks -SOCIAL TECHNOLOGY: USER-GENERATED CONTENT AND SOCIAL NETWORK In a way quite different from all previous technologies, e-commerce technologies have evolved to be much more social by allowing users to create and share content with a worldwide community. Using these forms of communication, users are able to create new social networks and strengthen existing ones. (NOR ) Commercial Transaction -An exchange of goods, services, or money between two or more parties, typically involving a buyer and a seller. It includes any business dealing where there’s an agreement for payment, often governed by a contract or terms of sale Retail -refers to the process of selling goods or services directly to consumers for personal or household use, rather than for resale. In retail, businesses act as intermediaries between manufacturers or wholesalers and end customers. Retailers purchase products in bulk and sell them individually or in smaller quantities at a markup to generate profit. Business Functions -A specific set of activities or tasks within an organization that serves a particular purpose and contributes to the company’s overall objectives. Each business function is focused on fulfilling a key area of the organization’s operations, such as production, marketing, finance, or customer service.