E-commerce Fundamentals PDF

Patna Women's College (Autonomous) ---------------------------------- Patna University ---------------- ### ### B.COM ### (ACCOUNTING AND FINANCE) ### ### Semester I ### SEC101 Fundamentals of E-commerce ### ### Unit 3 ### Nature and Dynamics of Internet, PureOnline Vs. Brick and Click...

Patna Women's College (Autonomous) ---------------------------------- Patna University ---------------- ### ### B.COM ### (ACCOUNTING AND FINANCE) ### ### Semester I ### SEC101 Fundamentals of E-commerce ### ### Unit 3 ### Nature and Dynamics of Internet, PureOnline Vs. Brick and Click business **Contents:** **1. Introduction to the Internet** **2. Pure Online Business** - **Definition**: Businesses that operate entirely on the internet without any physical presence. - **Examples**: Amazon (initially), Netflix, Spotify, various e-learning platforms. - **Advantages**: Lower overhead costs, global reach, scalability, data-driven decision making. - **Challenges**: High competition, cybersecurity threats, dependency on internet infrastructure, lack of physical interaction with customers. **3. Brick and Click Business** - **Definition**: Businesses that have both physical stores and an online presence. - **Examples**: Walmart, Target, Apple, many traditional retailers. - **Advantages**: Combines the strengths of physical and online retail, wider customer reach, diversified revenue streams. - **Challenges**: Higher operational costs, complexities in inventory management, integrating online and offline experiences. **4. Comparison: Pure Online vs. Brick and Click** - **Customer Experience**: Personalization and convenience online vs. tactile experience and immediate gratification in stores. - **Cost Structure**: Lower fixed costs online vs. significant fixed costs for physical stores. - **Logistics**: Challenges in shipping and returns for online vs. in-store pick-up and local inventory management. - **Marketing Strategies**: Digital marketing focus for online vs. integrated marketing for omnichannel. **Introduction to the Internet** The Internet is a vast network of interconnected computers and servers that communicate using standardized protocols. It enables global connectivity, information sharing, and various online services. The internet has revolutionized the way businesses operate. It has enabled the rise of pure online businesses, often referred to as e-commerce, which have fundamentally changed the landscape of retail and service industries. **Basic Internet Concepts** - **URLs (Uniform Resource Locators)**: Addresses used to access resources on the web. - **IP Addresses (Internet Protocol Addresses)**: Unique identifiers for devices connected to the Internet. - **DNS (Domain Name System)**: Translates human-readable domain names to IP addresses. - **Web Browsers**: Software applications used to access and interact with the web (e.g., Chrome, Firefox). **How the Internet Works** The Internet functions through a series of data packets transmitted between devices via routers and ISPs. Data is broken into packets, transmitted to the destination, and reassembled. Pure Online Business -------------------- **1. Definition** Businesses that operate entirely online without any physical presence. **2. Examples** - **Amazon (initially)**: E-commerce platform. - **Netflix**: Streaming service. - **Spotify**: Music streaming. - **E-learning platforms**: Coursera **3. Advantages** - **Lower Overhead Costs**: No need for physical stores, reducing rent and utility expenses. - **Global Reach**: Ability to serve customers worldwide without geographical limitations. - **Scalability**: Easier to scale operations and manage inventory. - **Data-Driven Decision Making**: Access to real-time data and analytics to inform business strategies. **4. Challenges** - **High Competition**: Online businesses face intense competition from global players. - **Cybersecurity Threats**: Risks of hacking, data breaches, and cyber-attacks. - **Dependency on Internet Infrastructure**: Reliance on stable internet connections and technology. - **Lack of Physical Interaction**: Challenges in building personal relationships with customers. Brick and Click Business ------------------------ **1. Definition** Businesses that have both physical stores and an online presence. **2. Examples** - **Walmart**: Retail giant with physical stores and a robust online platform. - **Target**: Traditional retailer with an integrated online presence. - **Apple**: Technology company with physical stores and online sales. **3. Advantages** - **Combines Strengths**: Leverages both physical and online retail strengths. - **Wider Customer Reach**: Access to both local and global customers. - **Diversified Revenue Streams**: Multiple channels for sales and revenue. - **Seamless Experience**: Integrated shopping experience with options like in-store pick-up and online returns. **4. Challenges** - **Higher Operational Costs**: Maintaining both physical stores and online platforms. - **Complex Inventory Management**: Coordinating inventory across multiple channels. - **Integration of Online and Offline**: Ensuring a seamless customer experience across both channels. Comparison: Pure Online vs. Brick and Click **1. Customer Experience** - **Pure Online**: Focus on personalization, convenience, and 24/7 accessibility. - **Brick and Click**: Offers physical experience, immediate satisfaction, and personal communications. **2. Cost Structure** - **Pure Online**: Lower fixed costs related to physical infrastructure. - **Brick and Click**: Higher fixed costs for maintaining physical stores. **3. Logistics** - **Pure Online**: Challenges in shipping, delivery, and returns. - **Brick and Click**: Efficient local inventory management and in-store pick-up options. **4. Marketing Strategies** - **Pure Online**: Digital marketing, social media, and SEO. - **Brick and Click**: Integrated marketing campaigns across digital and physical channels.