E-Commerce

E-Commerce Ubiquity

Marketplace is virtual

Transaction costs are reduced

E-Commerce Global Reach

Transactions cross cultural and national boundaries

E-Commerce Universal Standards

One set of technology standards: Internet Standards

E-Commerce Richness

Supports video, audio, and text messages

E-Commerce Interactivity

Real-time transactions and activities

E-Commerce Information Density

Greater price and cost transparency

Enables Price discrimination

E-Commerce Personalization/Customization

technology permits modification of messages, goods

E-Commerce Social Technology

Promotes user content generation and social networking

Digital Markets and Digital Goods in a Global Marketplace

Disintermediation: removing the "middle-man" in a transaction

Information asymmetry reduced

◦One party in a transaction has more information than another party

Menu costs, search and transaction costs reduced

◦Costs associated with finding products, suppliers, and costs

Dynamic pricing enabled

◦Pricing based on real-time demand and supply

Switching costs

◦Cost of changing products and/or vendors

Types of E-Commerce

Business-to-consumer (B2C) BarnesandNoble.com

Business-to-business (B2B) Granger.com

Consumer-to-consumer (C2C) eBay

E-Commerce Business Models

Business Models

ØPortal (Bing, Google)

ØE-tailer (Amazon)

ØContent provider (iTunes)

ØTransaction broker (Expedia)

ØMarket creator (eBay)

ØService provider (Dropbox)

Social/Community provider (Instagram

Revenue Models

Advertising

Sales

Subscription

Free/Freemium

Transaction fee

Affiliate (thewirecutter.com)

Cookies

used to remember things about websites: your login information, what you have in your shopping cart, what language you prefer, etc.

They are created by websites and sit in your browser until they expire.

Types of Cookies

Session Cookies - Typically last only for current session

◦Example: Non-personalized Shopping Cart Contents

First Party Persistent - Used only by web site that created it

◦Example: Bank Web Site Login Info

Third Party Persistent - Tracking cookies available anytime

◦Examples: Ads, Social Media Widgets, Web Analytics, Malware

Social Networks and Marketing

Features of social e-commerce driving its growth

◦Newsfeed

◦Timelines

◦Social sign-on

◦Collaborative shopping

◦Network notification

◦Social search (recommendations and 'Likes')

Social media

◦The fastest growing media for branding and marketing

◦Relatively few actual purchases through social media, but leads to other channels

◦Bots can produce misleading, or outright false information

Business to Business - EDI Private Exchanges, Net Marketplaces, Exchanges

Computer-to-computer exchange of standard transactions such as invoices, purchase orders

Major industries have EDI standards

◦Define structure and information fields of electronic documents

More companies are moving toward web-enabled private networks

◦Allow them to link to a wider variety of firms than EDI allows

◦Enable sharing a wider range of information

EDI and Supply Chain

Supplieb gives Catalogue

Customer purchases orbders

Supplier advbance shipping notice

Customer return authorbization

Supplier Invoice

Customer Payment Advice

M-COMMERCE (Mobile)

Mobile commerce (M-commerce) means purchasing and selling of goods and services over wireless handheld devices

Fastest growing form of e-commerce

◦Some areas growing at 50 percent or more

Main areas of growth

◦Mass market retailing (Amazon, eBay, etc.)

◦Sales of digital content (music, TV, etc.)

◦In-app sales to mobile devices

Threats and Challenges

◦Internet connectivity issues (Very remote locations)

◦Data Security

◦Development Costs

◦Diversity of devices (BYOD)