e commerce

Introduction to E-Commerce

  • E-Business: Administration of conducting business through the Internet, including buying/selling goods/services and providing support.

  • E-Commerce vs. E-Business: E-commerce mainly deals with commercial transactions; E-business encompasses broader activities including customer service and internal operations.

  • Popularity: Online shopping is rising due to its convenience and simplicity.

Definition of E-Commerce

  • E-commerce: Short for electronic commerce; transactions involving the buying, selling, and ordering goods/services over the Internet without face-to-face interaction.

  • Real-world applications: Online banking, shopping, ticket booking, social networking.

  • Essential Requirement: A website facilitates all marketing, advertising, and transactions.

Types of E-Commerce

  • B2B (Business to Business): Transactions between businesses. Examples: Oracle, Alibaba.

  • B2C (Business to Consumer): Businesses selling directly to consumers. Examples: Intel, Dell.

  • C2C (Consumer to Consumer): Transactions between consumers. Examples: OLX, Quickr.

  • C2B (Consumer to Business): Consumers selling to businesses.

E-Business Concept

  • E-business: Refers to the online presence of business and operations supported by the Internet.

  • Components of E-business: E-commerce is a part, but e-business includes internal communications and services as well.

  • Types of E-Business:

    • Pure-Play: Exists solely online. Example: Hotels.com.

    • Brick and Click: Exists both online and offline.

Key Differences: E-Commerce vs E-Business

  1. E-commerce is strictly buying/selling; e-business is broader.

  2. E-commerce is a component of e-business.

  3. E-commerce primarily involves transactions; e-business includes additional activities.

  4. E-commerce has an external focus; e-business includes internal operations.

  5. E-commerce needs a website, while e-business requires more extensive resources like CRM.

  6. E-commerce relies solely on the Internet; e-business uses multiple networks (Internet, intranet, extranet).

Features of E-Commerce

  • Non-Cash Payments: Accepts various electronic payment methods like credit/debit cards.

  • Service Availability: 24/7 access to services.

  • Advertising/Marketing: Improves resource reach.

  • Improved Sales: Automates order generation, boosting sales.

  • Customer Support: Provides pre- and post-sales support.

  • Inventory Management: Automates inventory and reporting.

  • Communication Improvement: Enhances interactions with partners and customers.

Traditional Commerce vs. E-Commerce

Comparison

  • Meaning: Traditional commerce involves physical exchanges; e-commerce uses electronic means.

  • Processing of Transactions: Manual in traditional, automated through electronic means in e-commerce.

  • Accessibility: Limited time access in traditional; available 24/7 in e-commerce.

Advantages of E-Commerce

To Organizations

  • Expands markets with minimal investment.

  • Reduces costs by digitizing information management.

  • Improves brand image and customer services.

  • Simplifies processes and increases productivity.

To Consumers

  • 24/7 access for inquiries and orders.

  • Greater selection and quicker delivery.

  • Comparative shopping options available.

  • Customer reviews aid purchase decisions.

To Society

  • Reduces traffic and pollution from shopping trips.

  • Makes products more affordable for low-income consumers.

  • Enhances access to goods/services in rural areas.

Disadvantages of E-Commerce

Technical Disadvantages

  • Lack of system security due to poor implementation.

  • Compatibility issues with software/hardware.

Non-Technical Disadvantages

  • High initial costs and potential user resistance.

  • Security concerns about online transactions.

  • Inaccessibility for those lacking internet proficiency.

E-Commerce Business Models

  • B2B: Businesses selling to other businesses.

  • B2C: Direct sales to consumers from businesses.

  • C2C: Consumer transactions among themselves.

  • C2B: Consumers selling to businesses.

  • B2G: Business to government transactions.

  • G2B: Government interacting with businesses.

  • G2C: Government services offered directly to citizens.

Electronic Data Interchange (EDI)

  • Definition: EDI as the exchange of business documents electronically.

  • Key Documents: Invoices, purchase orders, shipping requests, etc.

  • Advantages: Reduces errors, speeds up processing, less paperwork.

Electronic Fund Transfer (EFT)

  • Definition: Electronic transfer of money between bank accounts.

  • Popularity: Online banking becoming a mainstream method.

Comparison of HTML and XML

  • HTML: Focused on displaying data; predefined tags, not strict on closing tags.

  • XML: Focus on data transport and storage; custom tags, strict syntax.

EDI Trade Cycle

  • Process: Pre-sale, Execution, Settlement, After-sales.

  • Organizations often use EDI for high-frequency transactions.

Internet Commerce and Trade Cycle

  • Defines the use of Internet technology for advertising and sales.

  • Trade cycle focuses on once-off transactions like book sales or ticket bookings.

E-Procurement

  • Automation of procurement processes; benefits in efficiency and real-time information.

  • Main functions: Automates tasks, improves communication, visibility into spending.

E-Commerce in Different Sectors

  • Manufacturing, Wholesale, Retail, Service: E-commerce fosters efficiency and reduces costs across sectors.

E-Commerce Technology Infrastructure

  • Definition: Components needed for e-commerce; includes hardware, software, facilities, and networking.

Security Measures in E-Commerce

  • Essential Requirements: Confidentiality, Integrity, Availability, Authenticity, Non-repudiation, Encryption, Auditability.

  • Security Measures: Encryption, Digital Signatures, Security Certificates.

Conclusion

  • E-commerce continues evolving, driven by technology and changing consumer preferences, with growing importance in day-to-day transactions.