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Ecommerce Notes

The document provides an introduction to e-commerce and technology infrastructure. It discusses key concepts including e-commerce, e-business, categories of e-commerce like business-to-consumer and business-to-business. It also covers the development of e-commerce through electronic funds transfer, electronic data interchange, and the two waves of electronic commerce. The document examines identifying e-commerce opportunities through analyzing a firm's value chain and industry. It discusses issues around language, culture, and internet infrastructure.

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Gul-e-hasnain Waseem
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133 views

Ecommerce Notes

The document provides an introduction to e-commerce and technology infrastructure. It discusses key concepts including e-commerce, e-business, categories of e-commerce like business-to-consumer and business-to-business. It also covers the development of e-commerce through electronic funds transfer, electronic data interchange, and the two waves of electronic commerce. The document examines identifying e-commerce opportunities through analyzing a firm's value chain and industry. It discusses issues around language, culture, and internet infrastructure.

Uploaded by

Gul-e-hasnain Waseem
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Ecommerce

Chap# 01 Introduction to E-Commerce & Technology Infrastructure

E-commerce:
Ecommerce also known as electronic commerce, refers to the buying and selling of goods or services
using the internet, and the transfer of money and data to execute these transactions.

E-business:
E-business also know as electronic business, refers to the transformation of key business processes using
internet technologies.

Categories of Ecommerce:
Five general e-commerce categories:
 Business-to-consumer (B2C)
 Business-to-business (B2B)
 Business processes
 Consumer-to-consumer (C2C)
 Business-to-government (B2G)

Transaction:
An exchange of value such as purchase, sell

Business Process:
The group of logical, related and sequential activities and transaction in which business engage
Example: transferring funds, shipping goods, invoices.

Telecommuting or telework:
Employees log in to company computers through the internet instead of travelling to the office.

1. Business to consumer:
Businesses sell products or services to individual consumers. It 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.
OR
Business sell products or services to individual consumes.
Example: Walmart.com sells merchandise to consumers through its Web site.

2. Business-to-Business (B2B)
Business-to-Business (B2B) e-commerce encompasses all transactions of goods or services conducted
between companies.
OR
Business sells products or services to other businesses
Example: Grainger.com sells industrial supplies to large and small businesses through its Web site.
3. Business to processes:
Businesses and other organizations maintain and use information to identify and evaluate customers.
suppliers. and employees. Increasingly, businesses share this information in carefully managed ways
with their customers, suppliers. employees. and business partners.
Example: Dell Computer uses secure Internet connections to share current sales and sales forecast
information with suppliers. The suppliers can use this information to plan their own production and
deliver component parts to Dell in the right quantities at the right time.

4. Consumer to consumer:
This business model is leveraged by a consumer for selling used goods and/or services to other
consumers through the digital medium. The transactions here are pursued through a platform provided
by a third party, the likes of which include OLX, Quickr, etc.
OR
Participants in an online marketplace can buy and sell goods to each other. Because one party is selling
and thus acting as a business.
Example: Consumers and businesses trade with each other in the eBay.com online marketplace.

5. Business to government:
Businesses sell goods or services to governments and government agencies. This book treats B2G
transactions as part of B2C electronic commerce.
Example: CAL-Buy portal allows businesses to sell online to the state of California.

The Development and Growth of E-commerce


1. Electronic funds transfer (EFTs)
EFT is also called wire transfer, refer to electronic transmissions of account exchange information over
private communication network.

2. Electronic data interchange (EDI)


Transmitting computer-readable data in a standard format to another business. It reduces errors and no
need to reenter data.

3. Trading Partners
Business that engages in EDI with each other.

4. Value-added network (VAN)


Independent firm that offers connection and transaction forwarding services to buyers and sellers
engaged in EDI.

ELECTRONIC COMMERCE WAVE


Characteristics of the first wave
 Dominant influence of U.S. businesses
 Extensive use of the English language
 Many new companies started with outside investor money
 Unstructured use of email
 over-reliance on advertising as a revenue source
Characteristics of the second wave
 Global enterprises in many countries are participating in ecommerce
 Established companies fund ecommerce initiatives with their own capitals
 Customized email strategies are now integral to customer contact.

Business model: A set of processes that combine to yield a profit.


Revenue model: A specific collection of business processes used to Identify customers, market to
those customers and Generate sales to those customers.

Business Processes: Addition to revenue model: Managing transportation, training employees are
business processes.

Role of merchandising: Identify customer needs, convince customers to buy, combination of store
design, layout and product display knowledge.

Product/Process suitability to ecommerce:


Commodity: A commodity is a good for which there is demand, but which is supplied without qualitative
differentiation across a market.
Examples: notebook paper, milk, etc.

Shipping profile: Collection of attributes that affect how easily a product can be packaged and delivered.

High value to weight ratio: can make overall shipping cost a small fraction of the selling price.
Example: kodak camera bs real estate.

Advantages of Ecommerce:

 Order can be placed from anywhere.


 Eliminates the operating cost.
 It helps in connecting with people across the world.
 Retargets the customers.
 Ecommerce can increase sales and decrease costs.
 It increases purchasing opportunities for buyers.
 There is always detailed product information offered.

Disadvantages of Ecommerce:

 Customers have concerns about privacy and security.


 Lack of in-store engagement with customers.
 The added cost of operating an online store.
 Uncertainty about the product quality.
 Waiting for a product to be delivered.
Identify Electronic Commerce Opportunities
Firm: Multiple nosiness unites owned by a common set of shareholders.
Industry: Multiple firms that sell similar products to similar customers.

Strategic Business Unit Value Chains


Value Chain: A way of organizing the activities that each strategic business unit understand.
Primary activities include:
 Designing, producing, promoting marketing, delivering, and supporting the products or services
it sells.
Supporting Activities Include:
 Human resource management and purchasing

Industry Value Chain


Importance of strategic business unit fits within its industry.
Value System:
 Large stream of activities into which a particular business unit’s values chain is embedded.
SWOT analysis: Evaluating business opportunities:
An analyst first investigates the business unit to identify its strengths and weaknesses. The analyst then
reviews the operating environment and identifies opportunities and threats.
Language Issue
To do business effectively in other cultures a business must adapt to those cultures. Research have
found that customers are more likely to buy products and services from websites in their own language.
“Think globally act locally”.

Culture Issue
An important element of business trust is anticipating how the other party to a transaction will act in
specific circumstances.
Culture
 combination of language and customs.
 Varies across national boundaries.
 Varies across regions within nations
 Significance of colors (China vs US)

Infrastructure Issues
Internet infrastructure includes:
 Computers and software connected to the internet
 Communications networks over which message packets travel.
 Organization for economics cooperations and development’s (OECD)statements deal with
telecommunications infrastructure development issue.
 Flat-rate access system, consumer or buyer pays one-month fees for unlimited telephone line
usage and contribute to rapid rise of U.S electronic commerce.

Growth of the Internet


Internet hosts: directly connected computers
Internet growth:
 Technological and social accomplishment
 Used by millions of people
 Thousands of different software packages
 Billions of dollars change hands yearly
 Led to world wide web

Internet Protocol
Protocol: collection of network data rules including transmission rules and computers must use same
protocol
TCP/IP
Transmission control protocol controls message or file disassembly into packets before internet
transmission. control packets reassembly into original formats at destinations.
Internet Protocol specifies addressing details for each packet and label packet with origination and
destination addresses.

Domain Names
Dotted decimal notation difficult to remember.
Domain names are set of words assigned to specific IP addresses Example: www.google.com
It contains three parts separated by periods
 Top level domain (TDL)
 Generic top-level domains (gTDLs)
 Sponsored top level domains (sTDLs)

Electronic Mail Protocols


Electronic mails are formatted according to common set of rules e.g., client/server structure
Email Server are computers devoted to email handing. It stores, forwards email messages.
Email Client Software read and sends email and communicates with email server software.

Two Common Protocols


SMTP
Specifics mail message format, describe mail administration email server and mail transmission on the
internet.
POST
An application layer internet standard protocol used by local email clients to retrieve email from a
remote server over a TCP/IP connection.

Difference Between Web2 And Semantic Web

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