E-Commerce

E-commerce

- Where business transactions take place via telecommunications networks, especially the internet.

- It consists of buying and selling goods and services over an electronic systems such as the internet and other computer networks.

Pull type

- Customization of products and services which provides competitive advantages to its implementers.

Benefits of E-commerce

- Expands the marketplace to national and international markets

- Decreases the cost of creating, processing, distributing, storing, and retrieving paper-based information

Benefits to Organizations

- Reduces the time between the outlay of capital and the reciept of products and services

Benefits to customer

- Enables customers to shop or do other transactions 24 hours a day, all year round from almost any location.

- Provides customers with less expensive products and services by allowing them to shop in many places and conduct comparisons.

- Customers can recieve relevant detailed information in seconds, rather than in days or weeks.

Value chain analysis

- Analyzing an organization’s activities to determine where value is added to produces and/or services and what costs are incurred in doing so.

Valu chain analysis examples

- Inbound logistics

- operations

- outbound logistics

- market and sales

- Service

Business-to-business (B2B)

- It consists of largest form of Ecommerce. This model defines that Buyer and Seller are two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler.

- It involves electronic transaction between businesses.

- Fastest growing segment of E-commerce

Business-to-Consumer (B2C)

- The direct trade between the company and consumers. It provides direct selling through online.

Consumer-to-Consumer (C2C)

- It involves in business transactions between users, such as consumers selling to other consumers via internet.

- E-bay is one example of this.

Consumer-to-Business

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

E-commerce business models

- Merchant

- Brokerage

- Advertising

- Mixed

- Infomediary

- Subscription

Merchant

- It transfers the old retail model to the e-commerce would by using the medium of the internet.

Brokerage

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

Advertising

- By creating more traffic with this free content, they can charge companies for placing banner ads or leasing spots on their sites.

Mixed

- It generates revenue from more then one source.

Infomediary

- It collect information on consumers and businesses and then sell this information to other companies for marketing purposes.

Subscription

- It is an e-commerce site that sells digital products or services to customers.

Examples of Business-to-consumers

- Amazon.com

- Onsale.com

Example of Business-to-Business

- Walmart

Examples of Consumer-to-consumer

- E-bay

- Craiglist.com

Example of Consumer-to-Business

- Creating online surveys

Three Major types of B2B E-commerce models, based on who controls the marketplace.

- Seller (Seller-side marketplace)

- Buyer (buyer-side marketplace)

- Intermediary (third-party)

Seller-side market place

- Most popular B2B model

- Sellers who cater to specialized markets come together to create a common marketplace for buyers.E

E-procurement

- Enable employees in an organization to order and receive supplies and services directly from suppliers.

Buyer-side marketplace

- Buyer, or a group of buyers, opens an electronic marketplace.

Third-party exchange marketplace

- Controlled by a third party

- Marketplace generates revenue from the fees charged for matching buyers and sellers

- Usually active in vertical or horizontal marketEl

electronic payment

- Money or scrip that is exchanged only electronically.

Payment cards

- Debit cards

- Credit cards

- Smart cards

Other types of E-payments

- E-cash

- E-wallet

- E-check

- Paypal

Web marketing

- Uses the web and its supporting technologies to promote goods and services.