E-Commerce Fundamentals and Models

Electronic Commerce

where business transactions occur via telecommunications networks, especially the Internet

e-wallet

Electronic Payment Systems include credit cards e-check* and _____

wireless

The increasing use of mobile devices reflects a trend towards a ____Internet.

business-to-consumer (B2C)

Question 7

The major categories of e-commerce include business-to-business (B2B) and ____-

e-commerce

It consist of buying and selling goods and services over an electronic systems Such as the internet and other computer networks.

e-commerce

It is the purchasing, selling and exchanging goods and services over computer networks (internet) through which transaction or terms of sale are performed Electronically.

Marketplace

The Benefits of Electronic Commerce

.Expands the ____ to national and international markets

Cost

The Benefits of Electronic Commerce

Decreases the ____of creating, processing, distributing, storing and retrieving paper-based informatio

value-added networks (VANs)

The Benefits of Electronic Commerce

Lowers telecommunications cost - the Internet is much cheaper than _______________

Inventory Management

The Benefits of Electronic Commerce

Reduces inventories and overhead through “pull” type supply chain management.

pull type processing

The Benefits of Electronic Commerce

Allows for product and service customization, providing a competitive advantage.

Value Chain Analysis

A process to analyze an organization’s activities to determine where value is added and what costs are incurred.

Inbound Logistics

Movement of materials from suppliers to production/storage.

Operations

Processing raw materials into finished goods/services.

Outbound Logistics

Moving and storing products from production to end users.

Marketing and Sales

Identifying customer needs and generating sales.

Service

Supporting customers after the sale.

Business-to-Business (B2B)

Largest form of e-commerce.

This model defines that Buyer and seller are two different entities

It is similar to manufacturer issuing goods to the retailer or wholesaler.

Involves electronic transactions between businesses (e.g., Dell purchasing components from suppliers).

Business-to-Consumer (B2C)

Direct trade between businesses and consumers.

Example: Selling products directly to consumers through a website.

Business-to-Consumer (B2C)

It is the model taking businesses and consumers interaction. The basic concept of this model is to sell the product online to the consumers

Consumer-to-Consumer (C2C)

Individuals buying and selling to each other, often through platforms like eBay.

Involves online payment systems like PayPal.

PayPal

where people can send and receive money online with ease.

Consumer-to-Business (C2B)

It involves people selling products or services to businesses, such as a service for creating online surveys for a company to use

Merchant

Types of E-Commerce Business Models:

It transfer the old retail model to the e-commerce would by using the medium of the Internet

Brokerage

Types of E-Commerce Business Models:

It brings sellers and buyers together on the Web and collects commissions on transactions between these parties.

Advertising

Types of E-Commerce Business Models:

It is an extension of traditional advertising media such as radio and television. By creating more traffic with this free content, they can charge companies for placing banner ads or leasing spots on their sites

Mixed

Types of E-Commerce Business Models:
Generates revenue from more than one source.

Informediary

Types of E-Commerce Business Models:

Collects information on consumers and businesses, then sells this information to other companies for marketing purposes.

Subscription

Types of E-Commerce Business Models:

An e-commerce site that sells digital products or services to customers.

Business-to-Consumer

Pure-play

Brick and mortar

___ E-Commerce Companies sell directly to consumers.

Examples:

Amazon.com

Barnesandnoble.com

Types:

_____

_____ stores with virtual storefronts

Business-to-Business E-Commerce

Electronic data interchange (EDI)

Electronic funds transfer (EFT)

________ Involves electronic transactions between businesses.

Utilizes:

____

_____

Fastest growing segment of e-commerce.

Uses:

Purchase orders

Invoices

Inventory status

Shipping logistics

Business contracts

Other operations

Example: Walmart

Consumer-to-Consumer E-Commerce

_____ Involves business transactions between users.

Online classified ads:

Craigslist.org

Online auction sites:

eBay.com

Consumer-to-Business E-Commerce

___Involves people selling products or services to businesses.

Example:

Creating online surveys

Searching for sellers of products and services

Priceline.com

Information sharing; Ordering; Payment; Fulfillment; Service and support

• B2C E-Commerce Cycle Major activities:

  • ___:

    • Company Web Sites

    • Online Catalogs

    • E-mail

    • Online Advertisement

    • Video Conferencing

    • Message Boards

    • Newsgroups

  • ___:

    • Use electronic forms or e-mail to order products.

  • ____:

    • Credit cards

    • E-Checks

    • E-wallets

  • ____

    • Delivery of products or services to customers.

  • ____

    • E-mail confirmation

    • Product updates

    • Online surveys

    • Help desks

    • Guaranteed secure transaction

Intranets

Extranets

Virtual private networks

Electronic data interchange (EDI)

Electronic funds transfer (EFT)

B2Bs use additional technologies extensively:

What are the five?

seller, buyer, intermediary

Three major types of B2B e-commerce models, based on who controls the marketplace

Seller-Side Marketplace

• Most popular B2B model.

• Sellers catering to specialized markets create a common marketplace for buyers.

• E-procurement:

  • Enables employees to order and receive supplies and services directly from suppliers.

  • Can automate some buying and selling activities.

• Major vendors: I2 Technologies, IBM, Oracle, and SAP.

Buyer-Side Marketplace

• A buyer or a group of buyers opens an electronic marketplace.

• Invites sellers to bid on announced products or requests for quotation (RFQs).

• Buyers can:

  • Manage the procurement process more efficiently.

  • Lower administrative costs.

  • Implement uniform pricing.

• Examples: Large corporations like General Electric or Boeing.

Third-Party Exchange Marketplace

• Controlled by a third party.

• Generates revenue from fees charged for matching buyers and sellers.

• Usually active in vertical or horizontal markets.

• Offers suppliers a direct channel of communication to buyers through online storefronts.

electronic payment

Money or scrip exchanged only electronically.

payment cards

Credit, debit, charge, and smart cards.

smart cards

Credit card sized with an embedded microprocessor chip storing important financial and personal information.

other types of payment

E-cash

E-check

E-wallets

PayPal

Micropayments

web marketing

• Uses the Web and its supporting technologies to promote goods and services.

• Terms:

  • Ad impression

  • Banner ads

  • Click

  • Cost per thousand (CPM)

  • Hit

  • Cost per click (CPC)

  • Click-through rate (CTR)

  • Cookie

  • Meta tag

  • Page view (PV)

  • Pop-up ads

  • Pop-under ads

  • Splash screen

  • Spot leasing

eBay

A common example of C2C e-commerce is ___, where individual consumers can buy and sell products.

pull type processing

The ____ allows for customization of products and services, giving a competitive advantage.

payment

The business-to-consumer e-commerce cycle involves information sharing, ordering, and ____.

businesses

In B2B e-commerce, electronic transactions happen between  _____ rather than between businesses and consumers.

transactions

Mobile and voice-based e-commerce leverage mobile devices and smart speakers to facilitate _.

website

A typical e-commerce transaction starts when a consumer uses a web browser to connect to a merchant's  ____.

internet

E-commerce can reduce telecommunications costs by utilizing the  _________, which is usually cheaper than traditional value-added networks.

mixed

A__________ e-commerce business model generates revenue from more than one source.

intermediary

The three major types of business-to-business (B2B) e-commerce models are seller-side, buyer-side, and ______marketplaces.

e-commerce

The term 'merchant' in e-commerce refers to businesses that transfer the old retail model to the ______ world.

shopping cart

The process of purchasing online often includes adding items to a virtual  ____before finalizing the order.

anywhere

E-commerce enables customers to shop 24 hours a day from ____.

web browser 

In e-commerce, the process often starts with a consumer using a __________ to connect to a merchant's site.