Chapter 7 ECommerce

Introduction to E-Business and E-Commerce

  • Overview of Chapter 7 content: Focus on electronic commerce (e-commerce) and its implications.

  • Prepared by Andy Gunn, copyright ©2021 John Wiley & Sons Canada, Ltd.

Learning Objectives

  • Describe eight common types of electronic commerce.

  • Detail online services within business-to-consumer (B2C) e-commerce with examples.

  • Outline three business models for business-to-business (B2B) e-commerce.

  • Identify ethical and legal issues associated with e-commerce, including examples.

Chapter Outline

  • Overview of E-Business and E-Commerce

  • Business-to-Consumer (B2C) Electronic Commerce

  • Business-to-Business (B2B) Electronic Commerce

  • Ethical and Legal Issues in E-Business

E-Commerce Overview

  • E-commerce defined as buying, selling, transferring, or exchanging products and services online.

  • Opportunities: Increases business reach, removes barriers, transforms competition.

  • Challenges are associated with security and access in less-developed countries.

Definitions and Concepts

Electronic Commerce (EC)

  • The process of engaging in transactions via computer networks, including the Internet.

Electronic Business (E-Business)

  • A broader concept encompassing servicing customers, collaborating with partners, and conducting transactions electronically.

Types of Organizations

  • Brick-and-Mortar: Traditional physical locations without e-commerce elements.

  • Virtual Organizations: Online-only entities engaged solely in e-commerce.

  • Clicks-and-Mortar: Businesses with a physical presence who also operate online (e.g., Zara, The Bay).

Business Models of E-Commerce

Types of E-Commerce

  • Business-to-Consumer (B2C): Sales transactions between businesses and consumers.

  • Business-to-Business (B2B): Transactions between businesses.

  • Consumer-to-Consumer (C2C): Consumers selling directly to other consumers.

  • Business-to-Employee (B2E): Businesses providing services to employees.

  • E-Government: Digital interactions between government and citizens or businesses.

  • Mobile Commerce (M-Commerce): Transactions conducted via mobile devices.

  • Social Commerce: Incorporating social media into e-commerce practices.

  • Conversational Commerce: Engagement through messaging apps and chat.

Major E-Commerce Mechanisms

  • Electronic Catalogues: Most common method for showcasing products online.

  • Electronic Auctions: Platforms like eBay that facilitate buying and selling through bidding.

  • Electronic Marketplaces: Virtual environments where multiple vendors facilitate sales.

Electronic Payment Mechanisms

  • Electronic Cheques (E-Cheques): Digital equivalent of paper cheques.

  • Electronic Cards: Include credit cards, debit cards, and stored-value cards.

  • Digital Online Payments: Use platforms like PayPal for transactions.

Benefits and Limitations of E-Commerce

Benefits

  • Access to national and international markets.

  • Lower costs for processing and distributing information.

  • 24/7 availability of products and services.

  • Accessibility for diverse geographical locations.

Limitations

  • Inadequate universal security standards.

  • Challenges in bandwidth and access in less-developed areas.

  • Perceptions of e-commerce as insecure.

Business-to-Consumer (B2C) Electronic Commerce

Electronic Storefronts and Malls

  • Definition: Selling goods and services online directly to consumers.

  • Electronic Storefront: A single online store.

  • Electronic Mall: A collection of online stores (e.g., Amazon).

Online Services Industry

Key Benefit

  • Disintermediation: Removing intermediaries in service delivery.

  • Notable growth in blockchain-based services.

Financial Technology (Fintech)

  • Disruptive technologies providing digital finance services.

  • Examples include online banking, and trading platforms.

Blockchain Technology

  • Impacts multiple sectors, including finance, content creation, and supply chains.

Issues in E-Tailing

  • Challenges like channel conflict and fulfillment efficiency are prevalent.

  • Considerations for customer personalization and dynamic pricing.

Business-to-Business (B2B) Electronic Commerce

Sell-Side Marketplace

  • Platforms for businesses selling to other businesses.

Buy-Side Marketplace

  • Focus on procurement and purchasing solutions for organizations.

Electronic Exchanges

  • Facilitating trades and connections among multiple companies.

Ethical and Legal Issues in E-Business

Ethical Issues

  • Privacy concerns with tracking and data management.

  • Job loss associated with reduced need for intermediaries.

Legal and Ethical Challenges

  • Fraud, intellectual property issues, and cybersquatting.

  • Importance of adhering to regulations, including tax obligations.

Closing Thoughts

  • Recent events have accelerated the shift toward online shopping, affecting traditional retail models.

  • E-commerce impacts existing business models significantly.