E-business: All activities a company performs in selling and buying products and services using computers and communication technologies.
E-commerce: Buying and selling goods and services over the Internet.
Value Chain and E-Commerce
Value chain: Series of activities designed to meet business needs by adding value in each phase of the process.
Primary activities: Inbound logistics, operations, outbound logistics, marketing and sales, and service.
E-commerce enhances a value chain by offering new ways to reduce costs or improve operations.
E-Commerce vs. Traditional Commerce
Click-and-brick e-commerce: Mixes traditional commerce and e-commerce, capitalizing on the advantages of online interaction with customers while retaining the benefits of having a physical store location.
Disadvantages: Bandwidth issues, security and privacy concerns, accessibility, and acceptance.
E-Commerce Business Models
Merchant: Transfers the old retail model to e-commerce.
Brokerage: Brings sellers and buyers together and collects commissions.
Advertising: Uses free content supported by ads.
Mixed: Generates revenue from multiple sources.
Infomediary: Sells collected consumer and business information.
Subscription: Sells digital products or services.
Major Categories of E-Commerce
B2C: Business-to-consumer.
B2B: Business-to-business; includes EDI and EFT.
C2C: Consumer-to-consumer.
C2B: Consumer-to-business.
Government e-commerce: G2C, G2B, G2G, G2E.
Nonbusiness organizations: Universities and nonprofits using e-commerce.
Organizational/Intrabusiness: E-commerce activities within an organization.
B2C E-Commerce Cycle
Information sharing, ordering, payment, fulfillment, service and support.
B2C E-Commerce Evolution
Multichannel: Customer uses one unconnected channel for purchase.
Cross-channel: Customer uses several channels that complement each other.
Omnichannel: Integrates all channels for seamless communication.
B2B E-Commerce
Uses intranets, extranets, VPNs, EDI, and EFT.
Reduces delivery time and costs, improves communication and accuracy.
Major Models of B2B E-Commerce
Based on who controls the marketplace: seller, buyer, or intermediary.
Seller-Side Marketplace: Sellers create a common marketplace.
Buyer-Side Marketplace: Buyers invite sellers to bid.
Third-Party Exchange Marketplace: Not controlled by sellers or buyers; revenue from fees.
Trading Partner Agreements: Automate negotiating processes and enforce contracts.
Mobile and Voice-Based E-Commerce
M-commerce: Uses handheld devices for transactions.
Voice-based e-commerce: Uses voice recognition and text-to-speech technologies.
E-Commerce Supporting Technologies
Electronic payment systems, web marketing, mobile marketing, and search engine optimization.
Electronic Payment Systems
Electronic payment: Transaction where money is exchanged electronically.
Includes credit cards, debit cards, smart cards, e-cash, e-checks, digital wallets (e.g., PayPal, Venmo), and micropayments.
Web Marketing
Uses the Web to promote goods and services.
Mobile Marketing
Strategies include app-based, in-game, location-based, QR codes, mobile search ads, mobile image ads, SMS, and MMS.
Search Engine Optimization (SEO)
Improves website traffic volume or quality through higher search engine rankings.
Social Commerce
Influenced by social networks and online media.
Includes social networking sites, group buying platforms, peer-to-peer platforms, recommendation websites, participatory e-commerce, social advice, and user-curated shopping.
Hypersocial Organizations
Leverage social media to connect with customers and increase sales.
Key elements: members, content, member profiles, and transactions.
Four pillars: tribe vs. market segment, human-centric vs. company-centric, information channels vs. network channels, and social messiness vs. process hierarchy.
Social Media Information Systems (SMIS)
Support content sharing among members with components like hardware, software, people, procedures, app providers, user communities, and sponsors.