E-COMMERCE AND INTERNATIONALIZATION

1960s

Use of Electronic Data Interchange (EDI) for electronic document exchange.

1979

Michael Aldrich introduced electronic shopping (TV connected to computer via telephone lines).

1982

Boston Computer Exchange launched (first online marketplace for used computers).

1990s

Rapid growth due to the Internet; led by:

• Amazon

• eBay

How E-Commerce Works

1.E-Commerce Platforms

2.Payment Processors

3.Fulfillment & Delivery

4.Supporting Services

Types of E-Commerce

1. B2B

2. B2C

3. C2C

4. C2B

5. G2G

6. B2G

7. G2C

B2B (Business-to-Business)

Transactions between businesses.

B2C (Business-to-Consumer)

Business sells directly to consumers. (Most common)

C2C (Consumer-to-Consumer)

Consumers sell to other consumers via platforms.

C2B (Consumer-to-Business)

Individuals offer services/products to businesses (freelancing, influencers).

G2G (Government-to-Government)

Transactions between government agencies.

B2G (Business-to-Government)

Businesses sell to government (procurement/bidding).

G2C (Government-to-Consumer)

Online government services (tax payments, license renewal).

Benefits of E-Commerce

1. Global Reach – Sell worldwide.

2. 24/7 Operations – Always open.

3. Cost Savings – Lower overhead vs physical stores.

4. Convenience – Shop anytime, anywhere.
   
   

Challenges in E-Commerce

Security Concerns

High Competition

Logistical Challenges

Customer Trust

Internationalization

Expanding- e-commerce to foreign markets

Internationalization

1. Market research

2. Language & Localization

3. Legal & Regulatory Compliance

4. Logistics & Shipping

5. Payment Systems

Trends in E-Commerce

Mobile Commerce (M-Commerce)

Artificial Intelligence (AI) & Personalization

Sustainability

Social Commerce

Blockchain & Cryptocurrency

Mobile Commerce (M-Commerce)

• Growth of smartphone shopping.

• Source: Statista

Artificial Intelligence (AI) & Personalization

• Product recommendations, chatbots.

• Source: MIT Technology Review

Sustainability

• Eco-friendly packaging & shipping.

• Source: Greenpeace

Social Commerce

Shopping via social media platforms.

Blockchain & Cryptocurrency

• Secure transactions & crypto payments.

• Source: CoinDesk

Market Research

• Study local behavior, culture, spending habits.

• Analyze competitors.

• Source: Euromonitor International

Language & Localization

• Translate website & marketing materials.

• Adapt to cultural norms.

• Adjust payment methods.

• Tools:

  • Google Translate

  • Worldpay

Legal & Regulatory Compliance

• Follow local laws on:

  • Data privacy

  • Consumer protection

  • Taxation

• Examples:

  • General Data Protection Regulation (GDPR)

  • Federal Trade Commission (FTC)

Logistics & Shipping

• Customs rules

• Shipping cost

• Delivery time

• Partners:

  • DHL

  • UPS

Payment Systems

• Offer local payment methods.

• Support multiple currencies.

• Use:

  • PayPal

  • Stripe