E-commerce Lecture Notes PDF

1 Welcome to E-commerce (EHAD3000D) Mohammad Ejaz 2 Introduction to e-commerce 3 Learning Objectives Week 1 Define major current themes in e-commerce Identify and describe the unique features of e-commerce Elaborate...

1 Welcome to E-commerce (EHAD3000D) Mohammad Ejaz 2 Introduction to e-commerce 3 Learning Objectives Week 1 Define major current themes in e-commerce Identify and describe the unique features of e-commerce Elaborate on major types of e-commerce Understand the evolution of e-commerce from its early years to today. 4 What is e-commerce? Digitally enabled commercial transactions between and among organizations and individuals The buying and selling of information, products, services via computer networks (Kalakota and Whinston 1997, p.3) 5 E-commerce has experienced huge growth during the coronavirus pandemic 6  10.6% reduction in number of shops for the last ten year in Norway 7 8 9 Unique Features of E-commerce Technology 10 Ubiquity: available everywhere and all times Business environment has been passing through an era of transformation Marketplace: dependent on location and physical presence 11  Marketspace: transcends organizational, regional, and country boundaries (Momendo.no, hostelworld.com) Challenge: logistic 12 Global reach Cross border provision and distribution of products and services 13 Universal standards Homogenous technological standards for e-commerce Lowering of market entry costs for new businesses Reduction in search costs for consumers 14  Richness: complexity and content Utilization of multiple modes of communication to reach diverse segment of users Competitive advantage over print media, radio, and television Possibility of combining video, audio, and text (facebook.com and TikTok) 15 Interactivity E-commerce is transforming economic activities in sectors and regions Facilitates two-way exchange of information 16 Information density: total amount and quality Increase in reach to global pool of information Information is embedded in products, processes, services Lowering of accessing, collecting, communicating and processing costs 17 Personalization and customization Displaying content, product recommendations, and special offers based on past search, previous purchase of products and services, location, name, and personal interests Assigning user a role in specifying content and preferences 18 Social technology: user generated content and social networks Users have attained central role in the process of sharing content to global community Emergence of many-to-many mode of communication Users’ could exchange ideas with other users 19 Types of E-commerce Business-to-Consumer (B2C): businesses provide products and services to users (Oda.com/no and meny.no) 20 Retail Growth 21  Business-to-Business (B2B) Sale of goods and services between businesses (Alibaba.com, Amazon.com, and Global.rakuten.com) 22 Consumer-to-Consumer (C2C) Buying and selling of goods and services between users Finn.no (torget) Taobao.com 23 Mobile e-commerce (M-commerce) Utilization of mobile for transaction 63% use mobile for clothes and shoes in Norway Source: https://finansavisen.no/nyheter/handel/2022/08/18/7915401/kraftig-okning-i-netthandelen 24 Social e-commerce Supported by social networks and social relationships Many-to-many interaction and distribution 25 Local e-commerce Engaging business and consumers on the basis of geographical location Amoi.no (owned by Posten Norge As) 26 Development of E-commerce 27 Invention: 1995-2000 Large firms have created websites Marketing was limited to static display ads Appearance of opportunity to access global consumers 28  Economists: perfect competitive market, reduction of information asymmetry, direct access to customers, disintermediation (distributors and wholesalers), disappearance of monopoly profits, and disappearance of unfair competition Entrepreneurs: opportunity to earn more, direct access to customers, segmenting and targeting the customers, and first mover advantage, and lowering marketing costs 29 Consolidation: 2001-2006 Service firms (travelling and financial services) embraced e-commerce Home and office computers became the source of accessing internet Marketing: email, display, and search engine campaign 30 Present: 2007- User generated content creation and sharing Emergence of many on demand services (Uber and Airbnb) Broad utilisation of mobile applications instead of websites Creation of new business models 31