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Introduction To E-Commerce

1) Electronic commerce (e-commerce) involves the buying and selling of goods and services over computer networks like the internet. 2) There are four main categories of e-commerce: business to business, business to consumer, consumer to business, and consumer to consumer. 3) E-commerce provides benefits like convenience, lower costs, and a global market, but also faces limitations from security issues, lack of standards, and reliance on changing technology.

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75 views

Introduction To E-Commerce

1) Electronic commerce (e-commerce) involves the buying and selling of goods and services over computer networks like the internet. 2) There are four main categories of e-commerce: business to business, business to consumer, consumer to business, and consumer to consumer. 3) E-commerce provides benefits like convenience, lower costs, and a global market, but also faces limitations from security issues, lack of standards, and reliance on changing technology.

Uploaded by

Sanna Kazmi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to e-

Commerce
Lecture 1
Definition of Commerce
Commerce is a basic economic activity involving trading or the

buying and selling of goods.

Consists of:
Buyers - these are people with money who want to purchase a
good or service.

Sellers - these are the people who offer goods and services to

buyers.
Sellers are generally recognized in two different forms: retailers who
sell directly to consumers and wholesalers or distributors who sell to
retailers
Producers - these are the people who create the products and
services that sellers offer to buyers.
Elements of Commerce
Product or service to sell

Place from which to sell the products

A way to get people to come to your place

A way to accept orders

A way to accept money

A way to deliver the product or service, often known as fulfillment

Sometimes customers do not like what they buy, so you need a


way to accept returns.
A customer service and technical support department to assist
customers with products.
e-Commerce
Electronic commerce (e-commerce) is the buying
and selling, marketing and servicing of products
and services via computer networks.
Electronic Commerce is sharing business
information, maintaining business relationships
and conducting business transactions by means
of telecommunications networks.
Enables new ways of creating,
delivering and capturing value to
customers.
- Availability
- Convenience
Electronic Business
Electronic business(e-business) can be defined as the use of the
internet to network and empower business processes, electronic
commerce, organizational communication and collaboration
within a company and with its customers, suppliers, and other
stakeholders.

Every business needs to maintain three types of relationship: the


relationship with its customer, the relationship with its business
partners (e.g. suppliers), and the relationship with its employees.
Ecommerce provides an effective tool for building, managing,
and enhancing these relationships.
The process of e-Commerce
1.Attract customers
Advertising, marketing
2.Interact with customers
Catalog, negotiation
3.Handle and manage orders
Order capture
Payment
Transaction
Fulfillment (physical good, service good, digital good)
4.React to customer enquiries
Customer service
Order tracking
Four Categories of E-Commerce
Business originating from...

Business Consumers

Business B2B C2B

And selling
to...

Consumers B2C C2C


Four Categories of E-Commerce
BusinesstoConsumer (B2C):
In this case, the seller is a business organization whereas the buyer is a consumer.
This emulates the situation of physical retailing and so it is commonly called
electronic retailing.
activities tracked are consumer search, frequently asked questions and service and
support.
Examples: Amazon and Yahoo, ishoping-pk

BusinesstoBusiness (B2B):
In this case, both the buyer and the seller are business organizations. There are
three types of systems, namely, buyeroriented system, selleroriented system, and
virtual marketplace. In many situations, it is related to supply chain management.
This includes purchasing and procurement, supplier management, inventory
management, channel management, sales activities, payment management
&service and support.
Examples: Dell and General Electric, tradekey
Four Categories of E-Commerce
ConsumertoConsumer (C2C):
This refers to situations where both the seller and the buyer are
consumers. With the advent of ecommerce, online auctions
provide an effective means for supporting C2C ecommerce.
Examples: Ebay, daraz-pk,

ConsumertoBusiness (C2B):
This is a new form of commerce in which a consumer specifies the
requirements to a business, which provides a product that meets
these requirements. These requirements could be as simple as an
acceptable price, or could involve considerable customization of
an existing standard product, or creation of a new product.
Example: blogsorinternet forums,
Business originating
Business
from
Consumers
Publishers
order paper
Business
Consumers
supplies from search out
And Selling

paper sellers, offers


companies and initiate
Amazon
orders from purchases
publishers from Amazon
to

Consumers

Consumers buy
Consumers
thousands of
resell copies on
Harry Potter
eBay
books from
Amazon
Business to Government (B2G) and
Government-to-Citizens (G2C)???
M-commerce (Mobile Commerce)
E-commerce Environment
Macro and Mecro Environment
PEST, Porter five forces
Organizational culture- attitudes to R&D, willingness
to innovate and use technology
Commercial benefits- impact on financial
performance of the firm
Skilled/committed workforce- willing and able to
implement and use new technology
Requirements of customers/suppliers- in terms of
product and service
Competition- stay ahead of or keep up with
competitors
Seven Unique Features of E-
commerce
Benefits to Organizations
Powerful tool for building customer
relationships
Can reduce costs (Inventory cost,
infrastructure cost etc)

Offers greater flexibility in offers and


products (Customization)

Is a truly global medium


Benefits to Consumers

Convenience

24/7 availability
Provides greater product access and
selection
Provides access to comparative
information
Buying is interactive and immediate
Benefits to Society

More individuals can work from home

Benefits less affluent people

Globalization

Facilitates delivery of public services


Limitations of E-commerce
To organizations: lack of security, reliability,
standards, changing technology, pressure
to innovate, competition, old vs. new
technology
To consumers: equipment costs, access
costs, knowledge, lack of privacy for
personal data, relationship replacement
To society: less human interaction, social
division, reliance on technology, wasted
resources, JIT manufacturing
Technical limitations
There is a lack of universally accepted
standards for quality, security, and reliability
The telecommunications bandwidth is
insufficient
Software development tools are still evolving
There are difficulties in integrating the
Internet and EC software with some existing
applications and databases.
Special Web servers in addition to the
network servers are needed (added cost).
Internet accessibility is still expensive and/or
inconvenient

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