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E-Commerce Chapter 1: Overview of E-Commerce  Overview of E-Commerce What is E-commerce? What is online shopping? E-commerce (electronic commerce) is an emerging concept that describes the process of buying and selling of goods and services, as well as other acti...

E-Commerce Chapter 1: Overview of E-Commerce  Overview of E-Commerce What is E-commerce? What is online shopping? E-commerce (electronic commerce) is an emerging concept that describes the process of buying and selling of goods and services, as well as other activities such as payment processing and information retrieval, over computer networks, such as the Internet. It encompasses a wide range of online activities, including online retail (e-tail), electronic payments, online auctions, digital marketing, and supply chain management. Ecommerce allows businesses and consumers to engage in transactions without the need for physical contact. This can take place through various platforms such as websites, mobile apps, social media platforms, or online marketplaces. The most common examples of e-commerce are online stores (like Alibaba, Amazon, Uber, Flipkart) and online auctions (like eBay). Electronic commerce has two major aspects: economical and technological  Overview of E-Commerce Electronic activities……. E-Administration-the use of ICT in the delivery of Govt services and the management of public sector operations. E-Learning- the use of technology to deliver educational content and facilitate learning outside of traditional classroom settings. E-Government-the use of ICT to improve the delivery of public services and enhance interactions with citizens E-Business-all digital interactions within an organization. Electronic data interchange (EDI)--is the electronic exchange of business documents between organizations such as purchase orders, invoices, shipping notices, and other transactional information. EDI replaces paper-based processes with electronic methods for exchanging data. E-Mobile E-Tax E-Payments E-Receipts E-Signature E-Banking E-Agriculture E-mail  Overview of E-Commerce What is E-commerce?............ Among the countries in Africa, Nigeria, South Africa and Kenya are the countries with the most open e-commerce markets and the countries with the largest number of consumers using e- commerce. When we look at Ethiopia's e-commerce system, it is at a lower level than other African countries such as Uganda and Morocco. One of the major obstacles is the limited internet penetration and access to digital infrastructure, which hinders the widespread adoption of e-commerce. Additionally, there are concerns about online payment systems and logistics infrastructure. The future of Ethiopia's e-commerce system looks promising as technological advancements continue, internet access improves, and government policies support digital innovation. With these developments, it is expected that Ethiopia's e-commerce sector will experience significant growth in the coming years. Therefore, the e-commerce system in Ethiopia is at a low level due to the lack of internet access, lack of IT governance policies and various logistics infrastructure currently but promising development is there. Definitions of E-Commerce platform from Different Perspectives 1.Communications Perspective: E-commerce is the delivery of information, products/services, or payments over the telephone lines, computer networks or any other electronic means. 2.Business Process Perspective: E-commerce is the application of technology toward the automation of business transactions and work flow. 3.Service Perspective: E-commerce is a tool that addresses the desire of firms, consumers, and management to cut service costs while improving the quality of goods and increasing the speed of service delivery. 4.Online Perspective: E-commerce provides the capability of buying and selling products and information on the internet and other online services. E-commerce and E-business  E-commerce primarily involves transactions that cross firm boundaries.  E-business primarily concerns the application of digital technologies to business processes within the firm.  E-business is wider and can include communications, promoting your business, getting business information, buying and selling online, online banking and dealing with the government (such as online tax payment).  E-commerce is a sub-set of e-business- which uses the internet as a medium- for transactions the purchase, - transfer or exchange of - goods, services and/or information- over the internet.  The best way to understand e-businesses is with the help of examples: Email marketing is an e-business activity. It electronically conducts a business process. Inventory management is a business process, and when facilitated electronically, it becomes part of e-business. A content management system that manages the workflow between a content developer, editor, manager, and publisher is another example of an e-business. In the absence of an electronic workflow, the physical movement of paper files would conduct this process. By electronically enabling it, it becomes an e- business. Online tools for human resources can be produced by an e-business. These tools include online job boards, application processers, and systems that collect and maintain data about employees. Like M-jobs, Ethio-jobs…….. Types of E-commerce There are a number of different types of E-Commerce:-  B2B - Business to Business  B2C - Business to Consumer  C2C - Consumer to Consumer  P2P – Peer to Peer  Mobile commerce B2B - Business to Business The two businesses pass information electronically to each other. It is the largest form of e- commerce. Refers to the process of selling products and services directly between business firms Typically in the B2B environment, E-Commerce can be used in the following processes: o Procurement o Order fulfillment o Managing trading-partner relationships Ex:- eSteel.com is a steel industry exchange that creates an electronic market for steel producers and users. Alibaba……….. B2C - Business to Consumer Refers to the process of selling products and services directly between a business and consumers who are the end-users of its products or services. Most companies that sell directly to consumers can be referred to as B2C companies. Business-to-consumer refers to the process of businesses selling products and services directly to consumers, with no middle person. Example:- Amazon.com is a general merchandise that sells consumer products to retail consumers. C2C - Consumer to Consumer These sites are usually some form of an auction site. One consumer selling goods or services to another consumer online. Other consumers access the site and place bids on the items. The site then provides a connection between the seller and buyer to complete the transaction. The site provider usually charges a transaction cost. Example:- eBay.com, Uber……… P2P-Peer to Peer Peer to peer technology enables internet users to share files and computer resources directly without having to go through a central web server. An online platform that connects people in need of a product temporarily with people who have that product, but are not using it. There are P2P marketplaces for renting homes, cars, bikes, spots gears, music gears, etc. People deal with each other online directly without a middle man. Example:-Telegram, Gnutella are software applications that permits consumers to share music with one another directly, without the intervention of a market maker as C2C e-commerce. M-commerce Mobile commerce, or m-commerce, refers to the use of wireless digital devices to enable transactions on the web. Example:- PDAs(personal digital assistants) or cell phones can be used to conduct commercial transactions. How e-Commerce Works Working principles include: i) A marketplace where buyers and sellers participate=platform/website ii) A transaction system for making digital payments=Tele-birr, E-mobile, PayPal, VISA, MasterCard…. iii) A variety of inputs that include warehouses, product packaging, and delivery to consumers=Warehouses, logistics… iv) Organization-of information to facilitate transaction development and operations; = Information storage, organize, retrieve How e-Commerce Works more briefly The consumer first moves through the internet to the merchant’s web site. At the web site, the consumer is briefly given an introduction to the product or services the merchant offers. It is at this point that the consumer makes the decision to visit the web store by clicking on a link or button located on the web page (e.g., Buy Now, Shop Online, or an image of a shopping cart button are common entry points into a web store). After choosing to visit the web store, the consumer is typically connected to an online transaction server located somewhere else on the internet which runs software commonly referred to as a shopping cart application. The shopping cart application has been setup by the merchant to display all products and services offered, as well as calculate pricing, taxes, shipping charges, etc. From there, the consumer decides that he wants to purchase something, so he enters all pertinent credit card information and a sales order is produced. Depending on the e-commerce implementation, the sales order can now take two totally different paths for confirming to the consumer that the order is officially placed. How to Establish E-commerce There are several basic steps you will need to accomplish before becoming Commerce enabled.  Getting a Merchant Bank Account-In order to be able to accept credit cards, you must apply for an account with a credit card merchant account provider.  Web Hosting--Web hosting is a service that provides storage for the files that make up your website and the software, physical hardware, and network infrastructure that makes your website available to others on the internet.  Web Design Considerations---when you're designing your website, keep in mind what will matter to the target audience. Think about how they will find you. How they want to stay connected. What information they want.  Registering a Domain Name--Registering a domain name is one of the most important decisions you can make for your online identity.  A domain name is a string of text that maps to an alphanumeric IP address, used to access a website from client software.  In plain English, a domain name is the text that a user types into a browser window to reach a particular website. For instance, the domain name for Google is 'google.com'.  Obtaining a Digital Certificate--A digital certificate is a file or electronic password that proves the authenticity of a device, server, or user through the use of cryptography and the public key infrastructure (PKI). Digital certificate authentication helps organizations ensure that only trusted devices and users can connect to their networks. Social and Ethical issues surrounding E-Commerce The major issues raised by e-commerce can be loosely categorized into four major dimensions: Information rights: what rights do individuals have to control their own personal information when internet technologies make information collection so pervasive and efficient? Property rights: how can traditional intellectual property rights be enforced when perfect copies of protected works can be made and easily distributed worldwide via the internet? Governance: should the internet and e-commerce be subject to public laws? If so, what law- making bodies have jurisdiction- state, federal, and/or international? Public safety and welfare: what efforts should be undertaken to ensure equitable access to the internet and e-commerce channels? Do certain online content and activities pose a threat to public safety and welfare? Limitations of E-commerce There are several limitations on e-commerce, Some of these limitations are as follows: - Expensive Technology: Using the internet requires a $500 PC (minimal) and a $10/month connect charge. Complex Software Interface: Using the web requires installation of a complex operating system and application suite that is far more difficult to operate than a television or telephone. Sophisticated Skill Set: The skills required to make effective use of the internet and e- commerce capabilities are far more sophisticated than, say, for television or newspapers. Cultural Attraction and Social Event: For many peoples, shopping is a cultural and social event where people meet directly with merchants and other consumers. This experience cannot yet be duplicated in digital form. Limited Access of Technology: Most of the world’s population does not have telephone service, PCs, or cell phones. Challenges of E-commerce to fully implement in Ethiopia The fact that the financial and shipping sector is not developed The fact that there is no national address identification system, except Fayda (National ID started….) Weak control system and lack of coordination or lack of policies, procedures Accessibility =it should be accessible to everyone the platform Lack of internet access and unreliable service Integration of e-payments, e-receipts and e-signature technologies not yet started Examples Examples  hh hh hh hh