Introduction toE-COMMERCE

Ryann Z. ElumbaJose Rizal Memorial State

University

HISTORY OF THE INTERNET

• Internet is transforming the world’s economy. It is radically changing how people live, learn, work, play and consume.

• History of the Internet video

DEFINITION OF E-COMMERCE

• Commercial transactions• Products and services• Individuals and organizations

…wait, isn’t that just commerce?• Digitally enabled• Occur over the Internet and the web

DEFINITION OF E-COMMERCE

• Electronic Commerce (e-commerce) is the exchange of information or transactions using any form of electronic communication. It can also be referred to as an electronic transaction.

WHY E-COMMERCE IS IMPORTANT?

• Social and Digital Revolution Statistics video

8 UNIQUE FEATURES OF E-

COMMERCE

1. UBIQUITY• Internet technology is everywhere• PCs, laptops, mobile devices, slates, cars, fridges• Is your company ready to handle orders

placed in December 25th at 11:00PM?

2. GLOBAL REACH• Everywhere• Bills, invoice, deliveries, taxes• Is your supply chain ready to handle

international deliveries? At what cost?

3. UNIVERSAL STANDARDS

• One set of standards• Can be conveyed to all screens

4. RICHNESS• Video, audio, text messages• Tools to deliver more information to consumers• Decreases search cost• Increases sales promotion expenditures?

5. INTERACTIVITY• Technology works through interaction with user• Two-way communication• Do you have CUSTOMER SERVICE?

6. INFORMATION DENSITY

• Reduced information costs• Prices and costs become more transparent• Updated and accurate information• Can you afford a price war?

7. PERSONALIZATION/ CUSTOMIZATION

• Personalization of messages• Customization of orders/ products• Is your supply chain ready?

8. SOCIAL TECHNOLOGY

• User content generation• Peer review and ratings• Is your company ready to manage improper

messages?• Can your company turn the situation

around?

8 UNIQUE FEATURESUbiquity

Global Reach

Universal Standards

Richness

Interactivity

Information Density

Personalization/ Customization

Social Technology

BUSINESS MODELS

1. INTERNET ONLY BUSINESS

2. NON-PRESENT TRANSACTIONS BUSINESS

3. BUSINESSES THAT MADE THE TRANSITION

4. OFFLINE ONLY BUSINESS

CLICKS VS BRICKS

ADVANTAGES OF DIGITAL

• Rich product information

• Broadest selection• Customer reviews and

tips• Convenient and fast

checkout• Editorial content

advice

• Price comparison and special deals

• Social engagement and two-way dialogue

• Convenience of anything, anywhere and anytime access

CLICKS

ADVANTAGES OF PHYSICAL

• Edited assortment• Convenient returns• Shopping as an event and

experience• Instant access to products

• Ability to test, try on, or experience products

• Help with initial setup or ongoing repairs

• Personal help from caring associates

• Instant gratification of all senses

BRICKS

DISTINCT CATEGORIES OF E-COMMERCE

Business Consumers

Busine

ssCo

nsum

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Business originating from…

And

selli

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BUSINESS-TO-BUSINESS (B2B)

• The full spectrum of e-commerce that can occur between two organizations.– Purchasing and procurement– Supplier management– Inventory management– Channel management– Sales activities– Payment management– Service and support

BUSINESS-TO-CONSUMER (B2C)

• Exchanges between business and consumers– Portal– E-tailer– Content provider– Transaction broker– Market creator– Sales provider

CONSUMER-TO-CONSUMER (C2C)

• Exchanges involve transactions between and among consumers. These exchanges may or may not include third-party involvement as in the case of the auction-exchanges

CONSUMER-TO-BUSINESS (C2B)

• Consumers can band together to form and present themselves as a buyer group to businesses