Handout 1.pdf

August 17, 2024 Handout 1 | E-Commerce Ecommerce or "electronic commerce" is the trading of goods and services online. The internet allows individuals and businesses to buy and sell an increasing amount of physical goods, digital goods, and services electronically Advantages of e-Comm...

August 17, 2024 Handout 1 | E-Commerce Ecommerce or "electronic commerce" is the trading of goods and services online. The internet allows individuals and businesses to buy and sell an increasing amount of physical goods, digital goods, and services electronically Advantages of e-Commerce Disadvantages of e-Commerce a) Larger market a) Lack of personal contact b) Customer statistics through tracking and b) Lack of tactile experience analysis c) Product and price comparison c) Quick response to consumer trends and d) Need for Internet access market requirements e) Credit card fraud d) Lower costs f) IT security issues e) More opportunities for “selling” g) All eggs in one basket f) Personalized messaging h) Complexity of regulations, taxes and g) Increased sales along with immediate compliance satisfaction h) Ability to quickly increase (or decrease) unlimited "shelf space" as well Features of e-commerce Technology  Data interchange in information   Electronic business  Expedites and Streamlines Reporting  Application of electronic operations  Coordinates Sales Efforts  Convenience  Close Contact with Clients  Improve Responsiveness  Planning and Execution of Meetings Seven Exclusive Features of e-commerce Know-How Measurement of E-commerce Implication in Business Technology Omnipresence The marketplace is extended beyond traditional boundaries and is removed from a temporal and topographical location. Internet/Web technology is available “Marketspace” is created; shopping can take place anywhere. universally: at work, at home, and Customer accessibility is heightened, and shopping costs are elsewhere via mobile devices, anytime. reduced. Universal Reach Commerce is permitted across cultural and national boundaries seamlessly and without modification. “Marketspace” includes The technology spreads across national potentially billions of consumers and millions of businesses globally. boundaries, and around the earth. Worldwide Standards There is one set of technical media values across the world. There is one set of know-how standards, namely internet standards. Availability Video, audio, and text promotion messages are united into a single marketing message and consuming practice. Video, audio, and text communications are possible. Interoperability Consumers are involved in a dialog that enthusiastically adjusts the The technology works through an involvement of the individual and makes the consumer a interface with all the users irrespective coparticipant in the process of distributing goods to the market. of location. Reduction in costs Information processing, storage, and communication costs drop intensely, while currency, accuracy, and appropriateness The technology abridges information improve greatly. Information becomes plentiful, cheap, and accurate. costs and raises quality.  Manifestation The manifestation of marketing messages and customization of The technology allows custom-made products and services are built on individual characteristics. messages to be delivered to individuals as well as groups. Interdisciplinary Landscape of e-commerce a) Marketing f) Management Information Systems (MIS) b) Computer sciences g) Accounting and Auditing c) Consumer behaviour and Psychology h) Management d) Finance i) Business Law and Ethics e) Economics j) Others Models of E-commerce Electronic commerce is the process of steering commercial transactions electronically over the Internet. This process is carried out mainly in five models, and the main aspect of e-commerce is a merchant selling products or services to the consumers. Business-to-business e-commerce (B2B) Examples comprise Amazon, Rakuten, and Alibaba B2C brands can sell various brands under one umbrella, such as Business to consumers’ e-commerce (B2C) Amazon, Walmart, and Alibaba. Consumers to consumers e-commerce (C2C) Online C2C businesses include Etsy, Craigsist, and eBay Online insurance policy management Corporate announcement dissemination Online supply requests Business to employees’ e-commerce (B2E) Special employee offers. Employee benefits reporting online loan services A good example is Upwork, which permits businesses to hire Consumer-to-business e-commerce (C2B) freelancers. How to Start an E-commerce Business Step 1: Research e-commerce models and choose what to sell. Step 2: Write a business plan. Step 3: Choose a business name and start creating the brand. Step 4: Register business. Step 5: Create e-commerce business website. Step 6: Source and develop products or services. Step 7: Launch and market business. Delivery Methods E-commerce platforms Direct-to-consumer (D2C) Shopify Drop shipping Squarespace Bulk Purchases WooCommerce White label Magento Private label Subscription Expenditure to be incurred for starting E- E-commerce Promotion Strategies: commerce Business SWOT Analysis Licenses and permits IA Generic Framework to Promote E- E-commerce platform, domain name, Commerce Business and hosting Activities and Functions Product Inventory The E-Commerce Fundamental Shipping Marketing Employees I. SWOT ANALYSIS Evaluating Business Unit Opportunities Strengths Weaknesses · What does the company do well? · What does the company do badly? · Is the company effective in its market? Does · What difficulties could be avoided? the company have a strong sense of intention · Does the company have serious financial and the culture to support that purpose? problems? Opportunities Threats · Are industry trends turning upward? Whether competitors are performing well? · Are new markets accessible for the company's · What hurdles does the company face? products/services? · Are there disturbing changes in the company’s · Are there new technologies that the company business environment (laws, technologies, and can develop? regulations)? II. Generic Framework to promote E-commerce Interoperability Media Convergence Flexibility in forward integration New revenue collection methods Including the latest technologies and applications III. Activities and Functions Advertising and Shopping, Distribution and Receipt, Negotiating, Accounting, Ordering, Customer Service, and Billing, Information and Knowledge Payment and Settlement, Processing. IV. The e-commerce Fundamental Content Content Development Infrastructure Development Multimedia Publication Infrastructure (to generate multimedia contents for Deployment and business applications) Distribution Multimedia Storing Infrastructure (to offer for effective and organized storage Infrastructure facilities for efficient and quick recovery and deployment of multimedia contents) Multimedia Placement Infrastructure (to search and salvage multimedia contents from their storage locations) Distribution Infrastructure Network Admittance Device Infrastructure (independent and internally measured by merchants and consumers) Infrastructure acceptable by Network Service Providers (comprises Local-on- ramp service providers, National Data and Information Carriers, Third-party Value-Added Networks, and other Network Service Providers) Services Enabling 1. Securing Business Transactions by allowing hardware and software solutions to Infrastructure face both physical and logical security risks (this encompasses development of encryption technology and standards, development of standards and technology for restricting physical access to the e-commerce equipment). 2. Evolution of secure Electronic Payments Fund Transfer systems 3. Third-party confirmation and authentication services 4. Developing standards and formats for content creation, deployment and distribution, (this includes development of conversion software, multimedia formats, software development kits, development of standards and protocols for data transmission, and other such infrastructure) 5. Development and distribution of technologies enabling convergence of different media (this involves convergence of content, information access devices and transmission technologies).  Factors affect the Retail Industry Dynamics Overbuilding and Excess Capacity Demographic changes Consumer Behaviour Technological improvements in online retail (Television retail, Shopping on CD-ROM, Online based shopping) Customer Engagement in the Age of Digital Transformation(Better customer engagement, Better shopping experience, Reduced sales route, Improved transport options, Increasing the conversion rate using Voice Search) Online Retailing - a type of eCommerce whereby a business sells goods or services directly to consumers from a website. (https://www.wix.com/encyclopedia/definition/online- retail#:~:text=Online%20retail%20is%20a%20type,brick%2Dand%2Dmortar%20retail) Buying process in an Online Retailing environment Identification of a Need Create a set of considerations Information search and evaluation of alternatives Choice/decision. Management Challenges in Online Retailing a) Make the most of information and customer i) Leverage brands relationships j) Create the right incentives to attract b) Integrate online and offline channels customers online c) Use of offline scale k) Use distribution infrastructure to advantage d) Come up with a retail strategy l) Take advantage of partnership opportunities e) Channel conflict management m) Target total customer wallet f) Learn how to price online products/services n) Use the best customer to model future g) Provide a satisfactory shopping experience improvements h) Design the appearance of the online store o) Fulfilment of relationships Digital payments Bank cards Mobile banking Mobile wallets Internet banking Point of Sale Machines (PoS) Digital currencies Most popular Online Payment Methods from around the World Paypal Bank transfers Amazon Pay Prepaid cards eBay Managed Payments Gift vouchers Google Pay Digital currencies Apple Pay ‘Buy now pay later’ instant financing Payments by direct debit Cash on delivery (COD) Popular online payment methods around the world Europe o Payment by bank cards: Mastercard, Visa, American Express, UnionPay, JCB, Maestro o Pay using an electronic wallet: PayPal, Amazon Pay, Google Pay, Apple Pay, Yandex, Qiwi, Skrill o Payment by money transfer: Sofort, iDEAL o Payment by direct debit o Pay with cryptocurrency: Bitcoin o Pay with prepaid cards: SNAP, Paysafecard o Buy now, pay later: Klarna\ North America o Pay with bank cards: Mastercard, American Express, Discover, JCB, Visa, Interac Online o Pay using e-wallet: PayPal, Apply Pay, Google Pay, Android Pay, Samsung Pay, Neteller o Payment by money transfer: Skrill o Payment by direct debit: o Pay with cryptocurrency: Bitcoin o Pay with prepaid cards: Openbucks, Paysafecard o Buy now, pay later: Klarna, Afterpay  Asia o Pay with bank cards: UnionPay, Mastercard, Visa, JCB, RuPay o Pay using e-wallet: WePay Chat, AliPay, Paytm, Apple Pay, Google Pay, GCash, PayPal, GrabPay, PayU Wallet, Mobikiwi, Citrus Pay o Payment by money transfer: SMART Money o Pay with cryptocurrency: Bitcoin o Buy now pay later: Afterpay, LazyPay o Pay cash later: Konbini o Unified Payments Interface (UPI) in India Australia and New Zealand o Pay with bank cards: Visa, Mastercard, American Express, JCB, Discover o Pay using an electronic wallet: PayPal, Apple Pay, Samsung Pay, Google Pay o Payment by money transfer: Poli, BPay o Pay with cryptocurrency: Bitcoin o Payment by prepaid cards: Paysafecard o Buy now pay later: zipPay, Klarna, Afterpay, Openpay 7Cs Framework for customer interface design o Creativity o Continuity o Consistency o Compatibility o Clarity o Customization o Content How to Create an Ecommerce Website Step by Step a) Select the perfect e-commerce platform. o Open source o SaaS o Headless trade The following parameters also need to be considered at the time of deciding e-commerce platform.  E-commerce web hosting  Website performance  Traffic capacity  Mobile optimization  Secure payments and data  E-commerce website builders to use b) Buy a domain name. o Avoid creative spelling o Avoid generic names o The shorter the better c) Find a developer. d) Choose a merchant e-commerce theme. o Customer navigation o Homepage style e) Customize the merchant e-commerce template. f) Add merchant products. o Product descriptions o Product images g) Set payment options. o Redirection o On-site checkout, off-site payment o Payments on the spot h) resolve merchant shipping settings. i) Review, Test… and Publish Merchants Online Store. o Is the checkout working? o Are the store features working? o Does the store work on mobile? o Test the merchant store in different browsers o Set up the store’s settings. Technology for E-commerce Site o Technology behind e-commerce o Online Store o Shipping management o Shopping cart o Order fulfilment o Payment processing o E-commerce personalization o Top e-commerce technologies in the e-commerce space o Chatbots and Intelligent virtual o Supply chain visibility software assistants (IVAs) o Warehouse automation o Recommendation systems technology o Pricing tools controlled by o E-wallets artificial intelligence o Check-out free systems o Web scraping o Image search finders o Mobile application o Virtual reality What is EDI? Electronic data interchange (EDI) is the computer-to-computer automated exchange of standard electronic business documents between business partners over a secure, standardized connection. a) From computer to computer e) Secure, Standardized Connection b) Business documents f) Automation c) Standard EDI Format g) EDI vs. traditional paper or e-mail d) Business partners communication Traditional Methods EDI Process o The buyer will either receive an order o A buyer's procurement system, that uses EDI, notification in their system or determine that automatically generates, and sends a they need to place an order after querying purchase order in EDI format when inventory the inventory. reaches a predetermined level. o The buyer enters the data on the purchase o Within minutes, the seller's sales order system system screen to create the order, prints it using EDI software receives the EDI purchase and sends it by mail or email to the seller. order. o The salesperson receives the order either a o The supplier's system will automatically notify few days later or via email (along with a long their shipping department to ship the goods. list of other communications) and manually enters it into the sales order system. o Once the goods are packed and ready to ship, the shipping system generates an Advanced o The seller prints the invoice and attaches it Shipping Notice (ASN) to send to the buyer's to the shipment and/or sends it separately by receiving department. post or email. o The seller's ERP system then generates an o The buyer enters the invoice into the account EDI invoice, which is transferred to the system manually. buyer's account system o In this example, a paper system can add a o The entire EDI process can be completed week's round trip shipping time to the within an hour. process. Both email and paper are prone to manual data entry errors, which increases order time. Benefits of EDI o Faster processing o Better relationships o Lower costs o Strategic advantages o More accuracy, less errors o Benefits for the environment How EDI Works - prepare the documents, translate them into EDI format and send them to the partner. EDI documents - EDI envelopes for transmission,segments, data elements EDI Implementation: Setup and Compliance Checklist - EDI infrastructure, Settlement with partners, Certification according to common standards Digital Innovations in E-commerce I. Convergence of Content: II. Convergence of Transmission: III. Convergence of Information: Emerging Trends and Preparedness o Multimedia Content for E-commerce Applications o Information Delivery System(E-commerce applications, electronic payment systems)