Class Notes on Technology and Ecommerce

Ecommerce and Ebusiness Overview

  • Introductory definitions:

    • Ecommerce: The process of buying, selling, transferring, or exchanging products, services, or information via networks, including the Internet. It is primarily focused on transactional functions.

    • Ebusiness: Encompasses a broader spectrum of business activities, not limited to buying or selling. It includes activities such as customer service and collaboration with business partners through electronic means.

Case Studies and Practical Examples

  • Temu, recognized for its low-price positioning and promotional tactics (initially offering products for free with first orders).

    • It’s utilized as a strategy to gain market entry by converting users to loyal customers over time.

  • Loss leader strategies used at stores like Best Buy and Walmart.

  • Discussion of Porter's five forces with respect to competitive dynamics and market entrants like Timu affecting giants like Amazon.

The Concept of Loss Leaders in Ecommerce

  • Loss leaders in retail: A product offered at a price below cost with the intention of driving store traffic

Business Models in Ecommerce

  • Explanation of types of ecommerce models:

    • B2C (Business to Consumer): Direct sales to end customers.

    • B2B (Business to Business): Btw businesses (e.g., wholesale supplies).

    • C2C (Consumer to Consumer): Platforms like eBay where consumers sell to each other.

    • B2E (Business to Employee): Internal transactions online (e.g., pay slips).

    • E-Government: Online services by government entities.

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

    • Social Commerce and Conversational Commerce: social media platforms for sales

Advantages and Limitations of E-commerce

  • Advantages:

    • Global reach, 24/7 availability, lower operational costs, and broader market access.

  • Limitations:

    • Security concerns, insufficient bandwidth, perceptions of safety, and lack of certain products or services in online formats.

Privacy and Ethical Issues in E-commerce

  • Implications surrounding privacy, security, and online fraud.

  • Discussion regarding PIPEDA compliance and its implications for online transactions.

Key Mechanisms and Payment Methods in E-commerce

  • Descriptions of various electronic payment systems including electronic checks and debit/credit card transactions.

  • Explanation of how electronic transactions are processed

Marketing Strategies in Ecommerce

  • Overview of digital marketing strategies including banner ads, pop-ups, and viral marketing techniques to enhance online visibility.

  • Challenge of channel conflict in instances like Chapters' historical price discrepancies between online and in-store pricing.