E-commerce Overview and Fundamentals

Learning Objectives

  • Why Study E-commerce

    • Understand opportunities and risks in e-commerce.
    • Analyze e-commerce ideas, models, and issues.

  • E-commerce Definition

    • E-commerce involves digitally enabled commercial transactions between organizations and individuals using the internet, mobile browsers, and apps.

  • Difference Between E-commerce and E-business

    • E-commerce: Commercial transactions that occur between organizations and individuals.
    • E-business: Enhancements of internal processes and transactions within a firm that do not involve external exchanges.

Technological Building Blocks Underlying E-commerce

  • Internet: Foundation of e-commerce.
  • World Wide Web (WWW):
    • HTML for web pages.
    • Distinction between Deep Web and Surface Web.
  • Mobile Platforms: Involves the use of mobile apps for transactions and services.

Major Trends in E-commerce

  • Business Trends:
    • Surge in retail e-commerce and m-commerce due to the Covid-19 pandemic.
  • Technology Trends:
    • Advancements in mobile platforms and cloud computing.
    • Growth in Big Data and Internet of Things (IoT).
  • Societal Trends:
    • Heightened concerns around social networks and the market dominance of large tech firms.

Unique Features of E-commerce Technology

  1. Ubiquity: Availability everywhere at all times.
  2. Global Reach: Significantly extends market scope.
  3. Universal Standards: Facilitates global commerce through common protocols.
  4. Information Richness: Varied formats of information can be delivered.
  5. Interactivity: Enhanced user engagement with websites.
  6. Information Density: Vast amount of information is available and easily shared.
  7. Personalization/Customization: Tailoring of services/products to individual needs and preferences.
  8. Social Technology: Integration of social networks for marketing and customer engagement.

Types of E-commerce

  • Business-to-Consumer (B2C): Direct transactions between businesses and consumers.
  • Business-to-Business (B2B): Transactions between businesses.
  • Consumer-to-Consumer (C2C): Transactions between consumers, often facilitated by third-party platforms.
  • Mobile E-commerce (M-commerce): Transactions conducted through mobile devices.
  • Social E-commerce: Commerce that integrates social media platforms.
  • Local E-commerce: Focused on local businesses and transactions.

E-commerce History and Evolution

  1. Precursors (1970s-1980s): Early systems like the Baxter Healthcare modem-based system and Electronic Data Interchange (EDI) set the stage for e-commerce.
  2. Invention Phase (1995-2000):
    • Initial sales focused on basic retail with limited bandwidth.
    • Concepts of “friction-free commerce” debuted before the dot-com crash.
  3. Consolidation Phase (2001-2006):
    • Shift toward business-oriented e-commerce, with traditional firms establishing web presences.
  4. Reinvention Phase (2007-Present):
    • Emergence of Web 2.0, mobile platforms, local commerce, and on-demand services.

Assessing E-commerce

  • Technological success noted, but early business ventures were mixed.
  • Continued growth in online sales despite failures of many early dot-coms.
  • Significant market shifts and advantages expressed by later entrants in various markets.

Themes in E-commerce

  • Technology: Mastery of digital technology is essential for e-commerce growth.
  • Business: New technologies altering traditional business operations.
  • Society: Consideration for intellectual property and privacy impacts in the digital age.

Academic Disciplines Related to E-commerce

  • Technical: Fields such as computer science, management science, and information systems are vital.
  • Behavioral: Economics, marketing, management, sociology provide insight into consumer behavior and interaction.

Careers in E-commerce

  • Roles include positions such as E-commerce Retail Program Specialist.
  • Skills necessary involve a blend of technical acumen and marketing strategy.