Electronic Commerce

E-CommerceE-Commerce

WebSites & Businesses

Businesses use Web Sites to sell products and services to consumers all over the globe.

What is E-Commerce?

E-Commerce is business transactions conducted over the Internet

Exchange of goods, services, information or other business through electronic means

Involves the transfer of ownership of goods, information and/or services

Advertising & Marketing is critical

E-Commerce Goal

Is to Reach and Transact Business with Customers using the Internet

Business Activities that are improved upon:Transmit OrdersTransaction ProcessingPayment ProcessingCommunication with Customer on Order

Status

E-Commerce Types

Business to Consumer (B2C)Business to Consumer (B2C)Most commonly used Businesses using the Internet to sell

items, services or products to customers Also, customers buying from a online

business, store, etc…Many regular Retail Stores have Online

Stores/Sites also (considered Multichannel Retailers) such as Wal-Mart, Nike, Home Depot

E-Commerce Types Continue

Business to Business (B2B)Business to Business (B2B)businesses selling products or services

to each other such as a business purchasing items from Office Depot

Customer to Customer (C2C)Customer to Customer (C2C)Consumers sell items, goods & services

to each other such as Online Auction

E-Business

Electronic Business

is any process a business conducts over a computer network

Government, Not-for-Profit Organizations and Corporations all conduct E-Business

Traditional Commerce vs

E-Commerce

Traditional Commerce

Brick & Mortar BusinessesRetail StoresRetail Special OrderCatalog Store

Phone Orders from Catalog

Traditional Retailers

Store “Middle Man” (Manufacturer/Distributors) Customer

Specialty Stores Specialty Stores Toys “R” Us, Barnes & Noble and

Home Depot

Department StoresDepartment StoresJ.C. Penney, Macy’s & Sears

Traditional Retailers

Discount StoresDiscount StoresWal-Mart, Target & Big Lots

Services RetailersServices RetailersBanks, Hospitals & Health Clubs

Non-Store RetailersNon-Store RetailersHSN, QVC, Spiegel Catalog

Primary Differences of Traditional and E-commerce

E-Commerce Eliminates the middlemanBusinesses and consumers can

communicate directly Entrepreneurs can market their products

or services without the cost of salespeople or product representatives

Summary of E-Commerce

Increases a business’s revenue

Improves product recognition

Increases the efficiency of a business’s internal activities

Transcends geographic boundaries

Equalizes competition

Sells, Advertises, Markets & Distributes to a Global Marketplace

Activity #1

Using the Internet research 5 different world currencies

List the country, the currency, and the exchange rate in a table using HTML