Prof.Dr: Mohamed Assal

Introduction to computer

The hierarchical view of an organization

Overview

The Internet and World Wide Web have greatly

affected the way most of us live and do business. In

addition to using the Web to look up information,

communicate with others, and be entertained, many

consumers like to use the Web today to purchase goods

and services. Consequently, it is common today for

businesses to

offer goods and services online.

What’s electronic commerce?

E-commerce is the term used to describe conducting

business transactions (purchasing, selling and

paying )via communications technology. It was originally

performed via private networks (banks)

Today, e-commerce is most often performed via commercial

web sites( dot-coms ). These web sites typically have

a .com top-level domain in the URLs(www.amazon.com).

Many businesses today have both an online store and a

brick-and-mortar store (a physical store).

3

What’s electronic commerce?

Both computers and mobile devices are

frequently used for e-commerce.

In addition to buying conventional goods and

services online, mobile devices can be used to

buy fast food, pay for a cab or parking, buy

theater tickets, or send money to other

individuals while you are on the go.

4

E-commerce business models

The policies, operations, and technologies used

by a business help to define its business model.

In essence, a company’s business model

describes how the company generates revenue.

One way e-commerce business models can be

defined is by the types of entities (such as

businesses, consumers, or the government)

selling and buying the goods or services.

5

Business-to-Consumer (B2C) Model

The B2C model was one of the first major types of

e-commerce business models found on the Web:

1. Product-oriented B2C sites (such as Amazon.com,

Walmart.com, Overstock.com, and BestBuy.com) sell a

wide variety of goods, including clothing, electronics,

medicine, flowers, books, sports equipment, toys,

movies, and office supplies.

2. Service-oriented B2C sites include tax preparation,

video-on-demand (VOD), travel agency, distance

learning, and music subscription services. 6

Business-to-Consumer (B2C) Model

7

Business-to-Business (B2B) Model

The B2B model includes any type of e-commerce

transaction taking place between two businesses.

Possibilities include businesses buying goods and

services needed for their operations, as well as

purchasing manufacturing supplies and raw

goods. Initially, B2C was expected to be the most

prominent type of e-commerce business model;

however, revenues from the B2B model are now

expected to far surpass the B2C marketplace. 8

Business-to-Business (B2B) Model

this site sells printers to businesses.

9

Consumer-to-Consumer (C2C) Business Model

The consumer-to-consumer (C2C) model

sometimes referred to as the person-to person

(P2P) model involves individuals selling directly to

other individuals. Typically, C2C transactions are

carried out via intermediary Web sites set up to

facilitate this, such as online classified ad sites

like (Craigslist) and online auction sites like

(eBay). In fact, with millions of products up for

auction at any time, eBay is one of the largest

C2C e-commerce sites today.

10

11

Business-to-Government (B2G) Model

The business-to-government (B2G) model includes

transactions between businesses and local, state, and

federal governments. Many B2G e-commerce sites

specialize in selling products and services to

government agencies.

Other B2G activities (which can be thought of as G2B

activities because the government is providing services

to businesses) involve businesses paying government

taxes and fees online.

12

Advantages & Disadvantages of E-Commerce

13

Mobile commerce

While activities such as online shopping and online

banking can be carried out today via a mobile

device, new options are becoming available to

make these transactions easier, as well as to

simplify other m-commerce

activities such as transferring funds

between individuals.

14

Mobile commerce

For instance, Visa is developing a new electronic

payments system that will include a digital wallet

(to store payment account information for both

online and offline purchases), support for near-

field communication (NFC) (to enable phones

with built-in NFC capabilities to make offline

purchases by just waving the phone in front of a

Visa pay Wave terminal).

15

Electronic Financial Transactions

Successfully performing electronic financial

transactions is the cornerstone of any e-

commerce site. Therefore, a business should give

careful thought to which payment options it will

offer and how it will process payments securely

and accurately. The payment options used with

an e-commerce site typically depend on the type

of site (business model) it is and the types of

customers involved. 16

Electronic Financial Transactions

For B2C sites, the options include standard credit cards

and debit cards, and online payment services and other

forms of digital cash.

For B2B sites may need to consider additional payment

options, such as purchase orders.

The available payment options are usually displayed on

an e-commerce site’s order form or checkout page

Order forms should always be set up as secure Web

pages.

17

Electronic Financial Transactions

18

Credit and Debit Card Processing

Credit card processing is the first thing that comes to mind when considering online payments. Although some people are hesitant to submit their credit card information via a Web page, credit cards are by far the most common payment method used for online purchases. And, though it is possible to run an online business without accepting credit cards, it is essential for most B2C e-commerce sites.

19

Online Payment Services

One of the most widely used is PayPal an online

payment service that allows individuals to transfer

money easily from their online payment account to

someone else’s. Online payment services are often

used to pay for online auction purchases, but other e-

commerce sites can accept PayPal payments as well.

Other forms of these services are digital gift

certificates, digital gift cards, and digital

coupons.

20

Social Commerce In addition to impacting our personal lives, social

networking sites, such as Facebook, are also impacting our

online shopping experience.

Posts by individuals about buying products or planning to

go to an event may influence their friends’ purchases.

Facebook’s “Like” button can increase sales.

In the world of e-commerce, the ability of an individual to

personalize a shopping experience based on friends’

“recommendations” or “Likes” can be a huge competitive

advantage.21

Social Commerce

22

Review Questions What’s e-commerce? Mention e-commerce models. Discuss in detail B2B business model. Discuss in detail B2C business model. List the advantages of e-commerce for business. List the advantages of e-commerce for customer. List the disadvantages of e-commerce for

business. List the disadvantages of e-commerce for

customer. What’s mobile commerce? What’s social commerce? 23