E-Commerce

Electronic Commerce (E-Business)

Electronic commerce, or electronic business (e-business), refers to business transactions over the internet.

Categories of E-Commerce

  • Purpose: profit | non-profit

  • Size: small (≤99 employees) | medium (100-499 employees) | large (≥500 employees)

  • Type of Business: manufacturing | merchandising | service

  • Industry: primary | secondary | tertiary

  • Location: physical | virtual

  • Scope: local | provincial | national | international

  • Form of Ownership: sole proprietorship | partnership | corporation

Business Types

  • Manufacturing: a business that sells raw materials or turns them into manufactured goods

  • Merchandising: a business that sells manufactured goods to consumers

  • Service: a business that sells intangible product (service) to consumers

Industry Definitions

  • Primary: industry that obtains and provides natural and raw materials

  • Secondary: industry that converts the raw materials into commodities and products

  • Tertiary: industry that provides commodities and products to consumers

Business Locations

  • Physical: a business in a bricks-and-mortar model

  • Virtual: a business whose transaction between seller and buyer occurs electronically

Business Scope

  • Local: a business within one city or town (usually one location)

  • Provincial: a business spread throughout multiple cities in a province

  • National: a business available in multiple provinces

  • International: a business available in more than one country

Form of Ownership

  • Sole Proprietorship: a business with one owner

  • Partnership: a business with 2 or more partners who are responsible for operation and management

    • General partnership

    • Limited partnership

    • Limited liability partnership

  • Corporation: a legal entity that is separate from owners

Online Intermediaries

  • Definition: A third-party platform or service that facilitates transactions or interactions between two parties over the internet, typically between buyers and sellers.

  • Types of Intermediaries:

    • Marketplace

    • Payment gateway

    • Advertising networks

    • Service platforms

E-Commerce vs E-Business

  • E-Commerce: performing online commercial transactions (sale) over the internet

  • E-Business: performing all types of business activities (sale, marketing, operation, consumer management…) through the internet

Note: E-Commerce is a narrow concept that is a part of E-Business.

Types of Transactions

  • Business-to-Consumer (B2C): businesses selling products directly to individual consumers (e.g., online stores)

  • Business-to-Business (B2B): companies selling products to other companies (e.g., eBay)

  • Consumer-to-Consumer (C2C): individual consumers buying and selling products to one another, cutting out intermediaries (e.g., Facebook Marketplace)

  • Consumer-to-Business (C2B): individual consumers offer products to businesses (e.g., freelance service)

E-Commerce Process

  1. The seller chooses online selling channels.

  2. Customers find the product and place orders.

  3. A payment processor enables the transaction.

  4. The seller confirms the order.

  5. The seller completes the sale.

  6. If the transaction involves goods, the seller ships the product or arranges a pickup schedule for the product.

  7. If the transaction involves service, the service provider schedules and completes the service.

E-Business Opportunities

  • Accessibility and convenience

  • Direct access to customers

  • Global marketing reach

  • Relatively lower operating costs

E-Business Risks

  • Transaction Risks

  • Threat to Intellectual Property and Privacy

  • Data Storage and Transmission Risks

User Interface and User Experience Considerations

  • Design and Layout: Is the website visually appealing and easy to navigate? Are elements like buttons, menus, and images placed logically?

  • Mobile Responsiveness: How well does the website work on different devices, especially mobile phones?

  • Loading Speed: Does the website load quickly, or does it take too long to display content?

  • Search Bar Effectiveness: How accurate are the search results? Are there filtering and sorting options to refine product searches?

  • Autocomplete and Suggestions: Does the search bar offer useful product suggestions or corrections if the user makes a typo?

  • SSL Certificates: Does the website have a secure connection (HTTPS)? Is there a visible padlock icon in the browser’s address bar?

  • Data Encryption: Is personal data, such as credit card information, encrypted during transactions?

  • Multiple Shipping Options: Are there different delivery options (standard, express, etc.)?

  • Shipping Cost Transparency: Are shipping fees clear and upfront? Are there free shipping offers?

  • Tracking Information: Does the website provide tracking for orders?

  • Availability of Support Channels: Does the website offer multiple ways to contact customer service (chat, email, phone)?

  • FAQ and Help Sections: Is there a well-organized FAQ or knowledge base to assist customers with common questions?

  • Multiple Payment Options: Does the website accept a variety of payment methods (credit cards, PayPal, digital wallets, etc.)?

  • Currency Options: Can customers pay in different currencies, especially if it's a global site?

  • One-Click Checkout: Does the website support faster checkout options like one-click purchasing?

  • Product Recommendations: Does the website suggest products based on browsing history or previous purchases?

  • Personalized Content: Are promotions, offers, or product categories tailored to the user’s interests?

  • Stock Availability: Is the product availability clearly shown? Are out-of-stock products labeled, and does the site offer back-ordering or notifications when back in stock?

  • Real-Time Updates: Are inventory levels updated in real-time to reflect actual stock?

  • Accessibility for Users with Disabilities: Does the site adhere to accessibility standards (e.g., screen reader support, alt text for images, keyboard navigation)?

  • Text Size and Contrast: Are the text and colors easy to read, with good contrast and adjustable text sizes?

  • Social Proof and Sharing: Does the website integrate social media features, allowing users to share products or reviews easily?

  • Influencer and Community Engagement: Are there user-generated content or partnerships with influencers displayed?

Types of Computer Networks

  • Internet: A global network that allows people to communicate and access information from anywhere in the world

    • Purpose: to view and send all kinds of data

    • Accessibility: a public network that is unrestricted for everyone (dubbed a “network of networks”)

  • Intranet: A private network accessible only to employees within an organization

    • Purpose: to share information, resources, and applications within a company

    • Accessibility: restricted and protected so only authorized users can access sensitive data

    • Note: When it was first introduced in the 1960s, intranet was a separate physical network; now most intranets are cloud-based (i.e., accessible via internet)

  • Extranet: A network that allows people outside the organization to access certain information and resources

    • Purpose: to share resources with authorized people outside the organization

    • Accessibility: restricted and controlled so that only authorized personnel can use the network

    • Intranet and extranet are private while internet is public

    • Intranet and extranet are usually apart of the internet

Considerations for Choosing Web Technology

  • Current and target customers

  • Size of the business

  • Industry and competitors

  • Existing infrastructure and resources

  • Budget

  • Plans for growth

M-Commerce

  • A commercial transaction (buying and selling) via smart devices

  • Key to success: optimizing the mobile UX which is user experience

AI, AR, VR

  • AI: Common uses include personalization, chatbots, automation

  • AR: Stands for augmented reality and are virtual elements are added to a live view

  • VR: Stands for virtual reality a completely virtual experience where the user is in an entirely simulated environment

EDI (Electronic Data Interchange)

  • Technology that allows businesses to exchange information that was historically shared on paper (e.g., data order forms, invoices, receipts, etc.)

Web Technologies

  • Blogs:

    • Easy method of regularly publishing web pages

    • E-business context: event listings, business journals

    • Free or paid-for online services that enable blogging:

      • Typepad (typepad.com)

      • Blogger (blogger.com)

      • WordPress (wordpress.com)

  • Emails:

    • Communication tool for exchanging information

    • E-business email management controls include: spam (unsolicited email), internal business email, external business email, personal email

    • E-business concern: reduce the amount of time staff spend reading email

    • E-business context use: outbound email marketing

  • Feeds:

    • Method of exchanging different types of information using standard formats (typically based on XML)

    • Example of feed: Really Simple Syndication or Rich Site Summary (RSS)

    • Internet standard for publishing and exchanging content using XML

  • IPTV:

    • Internet TV tool that allows TV and video to be streamed via broadband across the Internet

    • Free and paid-for online services that allow uploading, downloading and streaming of videos include: YouTube, Hulu

  • Voice Over IP (VoIP):

    • Tool for transmitting voice over a LAN or on a wider scale to allow phone calls to be made over the Internet

    • Free and paid-for online services include: Messenger/Instagram, Skype, Zoom, Discord

  • Cloud Storage:

    • Tool that allows users to store and manage data on remote servers maintained by cloud storage providers

    • Key characteristics:

      • Accessibility: data can be access from any internet-enabled device

      • Scalability: there are flexible storage options

      • Data backup and security: cloud storage often provides automatic backups

      • Collaboration: many cloud storage platforms enable multiple user access

      • Free and paid-for online services: Google Drive, Microsoft OneDrive, iCloud

    Important:

  • Benefits of blockchain technologies are transparency, security, and efficiency

  • An individual offering freelance services to businesses is a C2B (consumer to business)

  • The primary purpose of blockchain technology is to create decentralized digital currency

  • Individuals selling goods to other individuals is C2C (consumer to consumer)

  • E-business is a broader concept of e-commerce

  • 7-Eleven belongs to the tertiary industry

  • A business with 100 employees is considered a small business

  • A global network that allows people to communicate and access information from anywhere in the world is internet

  • Business location means physical or virtual

  • A business whose goal is to make a profit by supplying goods and services
    Answer: Business

  • A group that does not seek profit but raises funds for a specific goal
    Answer: Non-profit

  • A business that has 99 or fewer employees
    Answer: Small

  • A business that has between 100 and 499 employees
    Answer: Medium

  • A business that has 500 or more employees
    Answer: Large

  • A business that sells raw materials or turns them into manufactured goods
    Answer: Manufacturing

  • A business that sells manufactured goods to consumers
    Answer: Merchandising

  • A business that sells intangible product to consumers
    Answer: Service

  • Industry that obtains and provides natural and raw materials
    Answer: Primary

  • Industry that converts the raw materials into commodities and products
    Answer: Secondary

  • Industry that provides commodities and products to consumers
    Answer: Tertiary

  • A business in a bricks-and-mortar model
    Answer: Physical

  • A business whose transaction between seller and buyer occurs electronically (location)
    Answer: Virtual

  • A business that operates within one city or town
    Answer: Local

  • A business spread throughout multiple cities in a province/state
    Answer: Provincial

  • A business available in multiple provinces/states
    Answer: National

  • A business available in more than one country
    Answer: International

  • A business with one owner
    Answer: Sole proprietorship

  • A business with 2 or more partners who are responsible for operation and management
    Answer: Partnership

  • A legal entity that is separate from owners
    Answer: Corporation

  • A third-party platform or service that facilitates transactions or interactions between two parties over the internet
    Answer: Intermediary

  • A site that connects sellers and buyers
    Answer: Marketplace

  • The front-end technology that reads payment cards and sends customer information to the merchant
    Answer: Payment processor

  • Technology that connects businesses that want to run advertisements with websites that wish to host them
    Answer: Advertising network

  • Performing online commercial transactions (sale) over internet
    Answer: E-commerce

  • Performing all types of business activities through internet
    Answer: E-business

  • Business selling products directly to individual consumers
    Answer: B2C

  • Companies selling products to other companies
    Answer: B2B

  • Individual consumers buying and selling products to one another, cutting out intermediaries
    Answer: C2C

  • Individual consumers offer products to businesses
    Answer: C2B

  • A global network that allows people to communicate and access information from anywhere in the world
    Answer: Internet

  • A private network accessible only to employees within an organization
    Answer: Intranet

  • A network that allows people outside the organization to access certain information and resources
    Answer: Extranet

  • Network of networks
    Answer: Internet

  • A commercial transaction via smart devices
    Answer: M-commerce

  • Virtual elements are added to a live view
    Answer: AR

  • A completely virtual experience where the user is in an entirely simulated environment
    Answer: VR

  • Technology that allows businesses to exchange information that was historically shared on paper
    Answer: EDI

  • Easy method of regularly publishing web pages
    Answer: Blog

  • Method of exchanging different types of information using standard formats
    Answer: Feeds

  • Tool that allows TV and video to be streamed via broadband across the internet
    Answer: IPTV

  • Tool that can be used for transmitting voice over a LAN or on a wider scale to allow phone calls to be made over the internet
    Answer: VoIP

  • Tool that allows users to store and manage data on remote servers
    Answer: Cloud storage