L1 Ecommerce

Electronic commerce

refers to economic activity that occurs online. E-commerce includes all types of business activity, such as retail shopping, banking, investing and rentals

BASIC ELEMENTS AND CHARACTERISTICS OF E-COMMERCE

1. Online Presence and User Interface

2. Payment Gateways and Security

3. Logistics and Fulfillment

4. Customer Experience (CX)

5. Back-End Integration

6. Digital Marketing

Online Presence and User Interface

A user-friendly website or app serves as the virtual storefront.

Online Presence and User Interface

Key Features: Intuitive navigation, responsive design, and visually appealing layouts.

Online Presence and User Interface

Builds trust and encourages customer engagement.

Payment Gateways and Security

Secure payment processing is critical for customer trust.

Payment Gateways and Security

Key Features: Reliable payment options, encryption, and compliance with security

standards.

Payment Gateways and Security

Reduces cart abandonment and builds confidence.

Logistics and Fulfillment

Efficient order processing and delivery are essential.

Logistics and Fulfillment

Key Features: Streamlined inventory, reliable shipping, and transparent tracking.

Logistics and Fulfillment

Enhances customer satisfaction and brand reputation.

Customer Experience (CX)

Focus on selling experiences, not just products.

Customer Experience (CX)

Key Features: User-centric design, personalized interactions, and high-quality visuals.

Customer Experience (CX)

Drives loyalty, repeat purchases, and referrals.

Back-End Integration

A well-coordinated back-end ensures smooth operations.

Back-End Integration

Key Features: Integrated systems, fast-loading websites, and omnichannel capabilities.

Back-End Integration

Improves customer satisfaction and operational efficiency.

Digital Marketing

Effective strategies attract and retain customers.

Digital Marketing

Key Features: SEO, social media marketing, and personalized communications.

Digital Marketing

Boosts brand awareness and maximizes profits.

Global Reach

With the utilization of electronic devices, it enables businesses to sell products to customers all over the world, removing certain limitations. Even the small business can connect with international buyers without the need for physical storefronts.

Convenience

E-commerce makes shopping online which makes it accessible 24/7. Orders can be made in different locations and it simplifies the process of comparing prices and finding the best deals.

Cost Efficiency

Online stores are generally less expensive than maintaining a physical one. There are no rental expenses, and automated systems can manage inventory, orders, and customer support, which saves both time and money.

Personalized Shopping Experience

Shopping platforms can monitor customer behavior, including what they view and purchase which enables the platform to provide tailored product recommendations. This may enhance customer satisfaction and experience.

Multiple Payment Options

Online sellers may offer different kinds of payment methods, such as credit/debit cards, PayPal, GCash, etc. This makes the shopping experience more convenient for the customers.

Scalability

Online businesses can expand rapidly by adding new products or entering new markets without significant investments in physical space or additional staff.

Search Engine Visibility

E-commerce websites may use search engine optimization, which makes recommendations to the customer depending on what is trending or relevant to their search queries.

Mobile Shopping

With the rise of smartphones, a growing number of consumers shop on mobile-optimized websites and apps. Businesses need to ensure their sites are mobile-friendly to remain competitive.

Data-Driven Decisions

E-commerce gathers data on customer behavior, enabling businesses to refine their marketing strategies, pricing, and customer service based on observed trends and preferences.

Security

Online retailers implement encryption, SSL certificates, and secure payment gateways to safeguard customer information and foster trust in online transactions.

Mobile e-commerce, m-commerce

is the term used to describe the growing trend of using networks that interface with wireless devices, such as laptops, handheld computers or mobile phones to initiate or complete online electronic commerce transactions

Advantages of E-commerce:

● Wider reach to global markets.

● Lower operational costs.

● Easier inventory and order management.

● No need for a physical storefront.

● 24/7 availability.

Disadvantages of E-commerce:

● Less accessibility compared to mobile shopping.

● Slower transactions on non-optimized sites.

● Higher cart abandonment rates due to lengthy checkout processes.

Advantages of M-commerce:

● Greater convenience with mobile-friendly platforms.

● Real-time notifications for offers and promotions.

● Faster checkout with biometric and QR code payments.

● Personalized experiences using GPS location tracking.

● Higher engagement through social media and in-app advertising.

Disadvantages of m-commerce:

● Smaller screens may affect browsing experience.

● Higher dependency on battery life and network stability.

● Security concerns with public Wi-Fi and app vulnerabilities.

● Limited computing power compared to desktops.

E TO M-COMMERCE DRIVERS

1. The Rise of Mobile Phones and The Increase in Their Users

2. The Effect of the COVID-19 Pandemic on the E-Commerce Industry

3. Widely Accessible Internet & Mobile Commerce

4. More Secure Mobile Payment

5. Convenience and Flexibility

6. Enhanced Customer Retention

The Rise of Mobile Phones and The Increase in Their Users

● Widespread Adoption of Mobile Phones

● Affordable Mobile Devices

● Enhanced Mobile Technologies

● User-Friendly Mobile Applications

The Effect of the COVID-19 Pandemic on the E-Commerce Industry

● Social Distancing and Lockdowns

● Consumer Behavior Changes

● Perceived Safety and Convenience

● Business Digital Transition

● Expansion of Delivery and Pickup Services

Widely Accessible Internet & Mobile Commerce

● Internet Expansion

● Affordability

● Speed & Reliability

● App-Based Commerce

● Social Media

More Secure Mobile Payment

● Biometric Authentication

● Two-Factor Authentication (2FA)

● Tokenization Technology

● End-to-End Encryption (E2EE)

Enhanced Customer Retention

● Push notifications and real-time engagement

● One-tap checkout

● QR code payments

● Location-Based Personalization & Offers

Social Distancing and Lockdowns

Access to physical stores was restricted by the government, which led customers to look into mobile purchasing options.

Consumer Behavior Changes

The use of mobile devices increased as people spent more time at home, which made m-commerce a practical way to shop.

Perceived Safety and Convenience

In keeping with consumers' goal to reduce health hazards, mobile shopping guaranteed greater safety than in-person shopping.

Business Digital Transition

Businesses quickly adapted by developing mobile apps and platforms to sustain revenues. ○ To improve user experience, chatbots and customer support features were implemented in mobile apps.

Expansion of Delivery and Pickup Services

Companies started offering contactless delivery and curbside pickup using smartphone apps. ○ Partnerships with third-party delivery services to meet the rising demand for online orders.

Widespread Adoption of Mobile Phones

○ Mobile phones are becoming essential tools for daily activities ○ Increased global distribution of smartphones

Affordable Mobile Devices

Availability of budget-friendly smartphones ○ A variety of models catering to different market segments

Enhanced Mobile Technologies

High-quality cameras for QR code and barcode scanning ○ GPS and location-based services for personalized experiences

User-Friendly Mobile Applications

○ Easy-to-use interfaces for seamless navigation ○ Apps designed specifically for shopping and financial transactions

Internet Expansion

Satellite internet, public Wi-Fi, and mobile networks improve accessibility. ○ Telecommunications companies invest in 4G and 5G infrastructure. ○ Mobile network deployment in rural areas bridges the digital divide.

Affordability

○ Lower mobile data costs and higher data allowances support m-commerce growth. ○ ISP competition leads to lower mobile data costs. ○ Smartphones are more affordable than computers, making them primary internet devices.

Speed & Reliability

○ 4G and 5G ensure faster browsing and smoother transactions. ○ Improved connectivity reduces checkout failures and cart abandonment. ○ Real-time customer support (chatbots, live chat) enhances user experience.

App-Based Commerce

AI-driven recommendations, push notifications, and real-time tracking enhance shopping.

Social Media

○ Social media platforms integrate shopping features (Facebook, Instagram, TikTok). ○ Live shopping events engage users and boost sales. ○ Influencer marketing drives product discovery and trust.

Biometric Authentication

○ Uses fingerprint scanning and facial recognition. ○ Eliminates the need for passwords, enhancing convenience. ○ Provides unique and secure user verification.

Two-Factor Authentication (2FA)

○ Requires an extra verification step (OTP, push notification). ○ Prevents unauthorized access even if passwords are compromised.

Tokenization Technology

○ Replaces credit card data with unique, non-reusable tokens. ○ Used by major platforms like Apple Pay, Google Pay, and Samsung Pay.

End-to-End Encryption (E2EE)

Encrypts payment data from input to processing. ○ Protects transactions from cyber threats and data breaches.

Push notifications and real-time engagement:

Businesses can send instant alerts about promotions, abandoned carts, and restocked items, keeping customers actively engaged and encouraging repeat purchases.

One-tap checkout

A simplified checkout process allows users to complete purchases instantly, reducing friction and improving the shopping experience.

QR code payments

Customers can quickly complete transactions by scanning QR codes, providing a seamless and hassle-free in-store payment experience.

Location-Based Personalization & Offers

M-commerce uses GPS and Wi-Fi to deliver customized offers, promotions, and shopping experiences based on a user's real-time location.