Ch 8 IS E-Commerce

E-Commerce

involves business activities such as distributing, buying, selling, marketing, and supporting products/services electronically

B2B (Business-to-Business)

transaction between businesses

What are the two forms of B2B

• Buy-side e-commerce: purchasing goods/services from suppliers. Walmart uses this

• Sell-side e-commerce: selling products to customers

B2C (Business-to-Consumer)

transactions between individual consumers and businesses

• like online retail, i.e. amazon

• Benefits: the internet enables shoppers to compare prices, features, and value. many goods are cheaper purchased online, product customization

C2C (Consumer-to-Consumer)

electronic transactions between consumers using a third party to facilitate the process

• when consumers sell to each other via platforms i.e. depop, facebook marketplace, etc.

e-government

the use of information and communications technology to accomplish the following:

• simplify the sharing of info

• speed formerly paper-based processes

• improve the relationship btwn citizens and gov.

Name the three forms of g-government

• G2C (Government-to Citizen)

• G2B (Government-to-Business)

• G2G (Government-to-government)

EGDI (UN E-Government Index)

measures e-gov performance across three dimensions:

1. provision of online services

2. telecommunication connectivity

3. human capacity

Mobile Commerce (m-commerce)

accesing e-commerce via tablets and smartphones

• involves business transactions conducted using mobile devices like apple pay

Omnichannel

an integrated strategy for engaging current and potential customers across multiple platforms to provide a seamless experience i.e. tiktok shop

E-Commerce Advantages

allows business to reach more prospects, reduce costs, scale easily, and provide around-the-clock access to customers

• convenience leads to higher levels of interaction and more purchases

• a reduction in costs is an important benefit

Cost Reduction

reduces cost by eliminating or reducing time-consuming and labor-intensive tasks throughout the order, fulfillment, and delivery process

E-Comm Customer Reach and Continuous Access

increase customer reach bcs physical stores are limited by geography and hours of operation

Scalability

describes an organization’s ability to control costs while maintaining performance and quality as demand changes 

• if more shoppers visit a company’s site, the company can increase bandwidth and computing power at a relatively low cost

E-Commerce Challenges

• omnichannel management

• cybersecurity

• shopping cart abandonment

• order fulfillment

• competition

cybersecurity

protection against unauthorized and illegal use of digital data

NIST (The National Institute of Standards)

provides a cybersecurity framework to help organizations identify and manage cybersecurity risks

Cybersecurity Framework

E-Commerce Applications

• Manufacturing

• Marketing

• Advertising

• The gig economy

• Investment and finance

Manufacturing

companies use EDI (electronic data interchange) to automate and streamline operations and communications with trading partners

EDI functionality is integrated into web-based B2B e-comm platforms

• three types of platforms: private, consortium operated, and independent

Marketing analytics tools allow…

e-commerce business to gather and analyze data from a variety of online sources

market segmentation

divides the pool of potential customers into subgroups usually defined in terms of demographic characteristics such as age, gender, martial status, income level, and geographic location

• break the customers into groups i.e. age, gender, and income to appropriately target consumers

Gamification Marketing

a marketing technique that uses design elements from games to attract and retain customers

• ex: if you spend $50 you get a $10 gift card, like duolingo and learning streaks

Affiliate Marketing

involves paying a third party to drive traffic to a company’s website and generate sales

CPM (Cost per mile)

pay per $1,000 impressions/views. Youtube pays per $1,000 impressions

CPC (Cost per click)

payed per click

CPA (Cost per action)

payed when a use completes a defined action, like signing up for a credit card.

CPV (Cost per view)

payed per view

The Gig Economy

a labor market where work is performed by temporary, part-time, and independent contract workers

• ex: doordash, ubereats, uber, lyft, etc.

Name the components that are included in the most successful e-commerce modeco

community, content, commerce

Key features of an e-commerce website

a successful e-commerce website focuses on design, content, and function.

SEO (Search Engine Optimization)

this leverages social media, provides fresh content, and uses targeted advertising to draw customers to a site

• improves visibility to social media