E-commerce: Digital Markets and Digital Goods

Unique Features of E-commerce

• Ubiquity: Internet is accessible anywhere, anytime.
  • Effect: Businesses operate in a virtual marketplace (marketspace).
• Global Reach: E-commerce transcends borders.
  • Effect: Access to billions of consumers and millions of businesses worldwide.
• Universal Standards: Single technology standards across the Internet.
  • Effect: Lower entry costs for merchants and easier product searches for consumers.
• Richness: Supports multimedia content.
  • Effect: Rich marketing experiences through integrated audio, video, and text.
• Interactivity: User engagement with customized experiences.
  • Effect: Consumers participate actively in content and transactions.
• Information Density: High-quality information available at low cost.
  • Effect: Enhanced pricing transparency and targeted marketing.
• Personalization/Customization: Tailored messages and products.
  • Effect: Consumers receive personalized content based on preferences.
• Social Technology: Promotes content generation and relationships.
  • Effect: New business models and social engagement strategies.

Principal E-commerce Models

• B2C (Business-to-Consumer): Direct sales to consumers (e.g., Amazon).
• B2B (Business-to-Business): Transactions between companies (e.g., ChemConnect).
• C2C (Consumer-to-Consumer): Transactions between consumers (e.g., eBay).
• M-commerce (Mobile Commerce): Transactions via mobile devices.

E-commerce Revenue Models

• Advertising: Revenue from site traffic & ad exposure.
• Sales: Direct sales of goods or services.
• Subscription: Fees for content or service access.
• Freemium: Basic services are free, charging for advanced features.
• Transaction Fees: Fees for facilitating transactions.
• Affiliate: Referrals generate commissions.

Marketing Transformation Due to E-commerce

• Long Tail Marketing: Reaching niche markets inexpensively.
• Behavioral Targeting: Tracking online behaviors for targeted ads.

Business-to-Business (B2B) E-commerce

• E-commerce significantly impacts B2B processes and reduces costs.
• Electronic Data Interchange (EDI): Automates transactions between businesses.

M-commerce Applications

• Growth areas:
  • Massive retail (e.g., Amazon).
  • Digital content sales.
  • In-app transactions.

Building an E-commerce Presence

• Identify business objectives and technology needs.
• Develop a roadmap including:
  • Website development.
  • Social media strategy.
  • Mobile adaptation.
• Set milestones for project phases.