2K Ch 10: E-Commerce

E-Commerce

Buying and selling of goods and services over the internet, on websites, apps, or social media

When did e-commerce begin

Early 1990s when advertisements allowed

Eight Unique Features of E-commerce

Interactivity

Ubiquity

Global reach

Universal standards

Richness

Information density

Personalization/ customization

Social technology

(IPI Gurus)

Key concepts in ecommerce

Information Asymmetry

Lower Menu costs

Dynamic Pricing

Disintermediation

Digital Goods

Disintermediation

Reduction of firms b/w customer and manufacturer

Business to Customer (B2C)

Retailing of p/s directy to individual customers

Eg. Chapters/Indigo

Business to Business (B2B)

Sales of goods and services to other businesses

Ex. ChemConnect

Consumer to Consumer (C2C)

Individuals using the web for private sales or exchange (Ebay.ca, Kijiji)

Types of Ecommerce

B2C

B2B

C2C

E-tailer

Sells physical products directly to consumer or to individual businesses ex. Amazon

Transaction broker

Saves users money and time by processing online sales transations

ex. expedia.ca

Market creator

Provides a digital environment where buyers and sellers can meet. Can serve consumers or B2B e-commerce

ex.. ebay

Content provider

Creates revenue by providing digital content such as news, music, photos, videos over the internet

ex. itunes

Community provider

provide an online meeting place

ex. facebook

Portal

Provide initial pt of entry to the web

ex. google.ca

Service Provider

Provides Web 2.0 applications such as photo sharing, video sharing

ex. Dropbox

Dropshipper

Selling online without stocking or shipping goods

ex. online stores

Social networking

Online meeting place where people can meet their friends

Social shopping sites

Swap shopping ideas with friends (ThisNext)

Wisdom of crowds/crowdsourcing

Large #’s of ppl can make better dcsns abt topics and products than a single person

Prediction mkts

Peer to peer betting mkts on specific outcomes (elections, sales figures, designs for new products)

Long tail marketing

ability of firms to profitably mkt goods to v small online audiences largely bc of lower costs of reaching v small mkt segments (ppl who fit into tail end of bell curve

Behavioral targeting

Tracking online behavior of individuals

On individual websites/apps and across advertising networks

Website Personalization

Creating a unique online experience for each visitor tailored to their specific needs, interests, and preferences.

VR Marketing

Create a sensory experience, combining

visuals, sounds, tactile experience

o Virtual product demonstration

o 360-degree brand experience

o Virtual events and expos

AR Marketing

Immersive and interactive experience
for customers
o Product visualization
o Interactive advertising
o Enhanced retail and event experience

Three main types of mobile app payment services

Near Field Communication (NFC)

• Apple, google, samsung pay

QR Code

• Starbucks, Walmart, Target, Dunkin Donuts

Peer to Peer (P2P) payment systems

• Venmo, Zelle