E-Commerce 

WHAT IS E-COMMERCE

• E-commerce: all form of business transactions conducted electronically over computer networks, the internet in particular.
  • Tangible goods: food, clothing and the likes
  • Digital goods: computer software
• Business Process: integral elements that make e-commerce workable.
• E-business: any business that applies internet technologies in its operation.
• E-commerce: the exchange of goods and services that takes place between or among these businesses

Business Models

• Business to Business (B2B): electronic trade that takes place between companies.

• Business to Consumer (B2C): the simplest and most recognizable form of ecommerce. The direct trade between companies and consumers.

• Consumer to Business (C2B): Rapidly growing trend in e-commerce. Customers can directly tell marketers their exact requirements. A two-way street.

• Consumer to Consumer (C2C): The egalitarian side of e-commerce. Consumers are given an venue to trade among themselves.

• Peer to Peer (P2P): the most preferred mode of sharing information because it allows computer terminals in a network to hook up without having to go through a central web server

• Mobile Commerce (M-commerce): “ecommerce on the go” – all business transactions are carried out using a portable device instead of a stationary computer.

Business Applications

• Online Shopping: Buying and selling goods on the internet. Mode of selling is known as electronic tailing or e-tailing.
• Electronic Payments: empower virtually everybody to participate in and benefit from e-commerce. Have the potential to reach a very large group of buyers and sellers. Internet Banking: An entire gamut of banking services has been made available online.
• Online Booking and Ticketing: Any kind of ticket can be booked online.

E- Commerce Timeline

• Electronic Data Interchange (EDI): large companies were already transacting electronically using a networking technology.

• Electronic Funds Transfer (EFT): move huge amounts of money digitally.

• 1979: Michael Aldrich, a British innovator, built videotex, platform for online shopping. It failed.

• 1982: France Telecom introduced Minitel, became a big hit.

• 1987: Swreg created the first online merchant account to help software developers sell their solutions.

• 1990: Tim-Berners Lee created World Wide Web.

• 1994: Netscape release Navigator, a graphical browser that used an encryption system for secure online transaction.

• 1995:

  • Jeff Bezos launched Amazon, the largest online retailer.
  • Pierre Omidyar founded e-Bay as
    “auction web”
  • VeriSign started to verify authenticity of online merchants.

• 1997: Dell became the first company to reap 1M sales.

• 1998: Google was created by Larry Paige and Sergey Brin.

• 1999: Napster, a P2P file sharing website, was launched

• 2000: dot-com bubble burst.

  • Dot-Com Bubble: the unjustified enthusiasm over Internet-based companies.

• 2002: Paypal was acquired by e-Bay for 1.5M

• 2003: Facebook – Mark Zuckerberg

• 2006: Google bought Youtube.

• 2007: Adwords earned 21B in revenues.

• 2009: Yahoo! And Bing challenged Google’s dominance.

• 2010: Groupon, a group buying website rejected a 6B from Google.

• 2011: GSI Commerce was acquired by eBay for 200B

Emerging Trends

• Group Buying or Collective Buying: prices are reduced when a minimum number of buyers make the purchase.

• Facebook Commerce/ F-commerce: buying and selling through Facebook.

• Private Sample Sale: the hottest area in online retailing.

• Sample Sale: selling sample Merchandise.

• Browser: computer interface used to access the internet.

• World Wide Web: system linked hypertext documents.

ENTREPRENEURSHIP ONLINE

• Online Entrepreneur: needs to have the quality of entrepreneurship and the capability to function online.
• Business: a commercial or industrial enterprise.
• Enterprise: a project or undertaking that is especially difficult or risky.
• Good: actual, physical item or object.
• Service: Non-physical, intangible product given by someone with a particular field.

Businessman VS. Entrepreneur

• Businessman: one who transacts business; a business executive.
• Entrepreneur: One who organizes, manages, and assumes the risks of a business or enterprise.
• The basis of economies of scale is the larger the number of goods produced.
• Economies of Scale: the increase in efficiency of production as the number of good being produced increases.
• Reputation: recognition by other people of some characteristic or ability