Abstract Traditional commerce method is fallen behind the time that need for the new economical structure associated with boost of the internet usage. Traditional commercial is performed in stores and offices of the companies which led to some difficulties for customers, such as unavailability, inaccessibility and lack of diversity for goods. Usage of e-commerce method is started the early 2000s. Since then, e-commerce market is increased with respect to increment of internet usage. E-commerce provides easiness for customer in various ways. A customer accesses or even buys everything within the internet connection. The store or office is not required for trades. Companies can show various kind of their product in order to contact with customer within internet. Hence, sales rate is much more than traditional method with respect to accessibility of the customer and also product. First part of report is including history about E-comerce. An internet site which is designed very simple, can show all of yours product without any cost for owner of companies. By internet site of companies, customer accessibility rate increased. With this scope, new internet sites are come up which are sold every trade names products. We can give examples for these sites as E-bay, sahibinden.com, gittigidiyor. They can sell not only small product, even sell cars, apartments, pets. Size of the sales has increased and they start to advertise by using discount products on internet. Types of E-commerce are given in report. The new trend is selling products by social network and mobile commerce, but mcommerce is containging problems about safety and familiarity. The effect of trust was stronger on important case such as purchasing products or services from website using credit card than on less important case such as inquiring about products or services. The report will be focused lack of trust that makes impossible to some customer use E-Commerce. The report will describe solution for e-commerce trust problem by using social media familiarity. From this point of view, a real world case about Hacettepe University student web based application will be given in report. It tries to show familiarityconcepts, how they can and should adopt e-commerce to their sales and their internet applications. Lastly a conclusion will fallow about report.
TABLE OF CONTENT
1. 2. 2.1. 2.2. 2.3. 2.4. 2.5. 3. 3.1. 3.2. 3.3. 4. 5. WHAT IS ELECTRONIC COMMERCE?.................................................................................. 5 TYPES OF E-COMMERCE ....................................................................................................... 7 What is B2B e-commerce? ..................................................................................................... 7 What is B2C e-commerce? ..................................................................................................... 8 What is B2G e-commerce? ..................................................................................................... 9 What is C2C e-commerce? ..................................................................................................... 9 What is m-commerce? ............................................................................................................ 9 ANALYSIS OF THE E-COMMERCE ..................................................................................... 11 LIMITATION OF E-COMMERCE ...................................................................................... 12 PROBLEM DEFINITION .................................................................................................... 13 EXPLANATION AND IMPLEMENTATION OF SOLUTION............................................ 14 CONCLUSION ........................................................................................................................ 16 REFERENCES......................................................................................................................... 17
LIST OF FIGURE
Figure 1:Sales number for E-Commerce ........................................................................................... 11 Figure 2: Distribution of E-Commerce Market ................................................................................. 12 Figure 3: Prediction of M-Commerce Market ................................................................................... 12 Figure 4: Prediction of E-Commerce Market Share over Total Retail Market Sale ............................ 13 Figure 5: Expected S-Commerce Income .......................................................................................... 14 Figure 6:Member Numbers of Markets in Facebook Pages ............................................................... 14
LIST OF TABLES
Table 1: PROJECTED B2B E-COMMERCE BY REGION, 2000-2004 ($BILLIONS) ....................... 8
Electronic support for collaboration between companies such as collaborative on-line design and engineering or virtual business consultancy teams.
Some of the definitions of e-commerce often heard and found in publications and the media are (Inc., 2008): Electronic Commerce (EC) is where business telecommunications networks, especially the Internet. transactions take place via
Electronic commerce describes the buying and selling of products, services, and information via computer networks including the Internet. Electronic commerce is about doing business electronically. E-commerce, ecommerce, or electronic commerce is defined as the conduct of a financial transaction by electronic means. The birth of e commerce companies such as eBay and Amazon really began to lead the way in e-commerce. Both eBay and Amazon (Schafer, Konstan, & Riedl, 2000) were among the first to establish prominent e-commerce brands. In the last decade, many startup e-commerce companies have rapidly stolen market share from traditional retailers and service providers, pressuring these established traditional players to deploy their own commerce websites or to alter company strategy in retaliation. The most prominent e-commerce categories today are computers, books, office supplies, music, and a variety of electronics. These companies began as just an online stores and over the years have extended themselves offering to a wide variety of product categories, including electronics, software, music, DVDs, CDs, video games, MP3s, clothing, shoes, health and beauty products and even household goods. The wide range of business activities related to e-commerce brought about a range of other new terms and phrases to describe the Internet phenomenon in other business sectors. Some of these focus on purchasing from on-line stores on the Internet. Since transactions go through the Internet and the Web, the terms I-commerce (Internet commerce), icommerce and even Web-commerce have been suggested but are now very rarely used.
2. TYPES OF E-COMMERCE
For classifying e-commerce is by identifying the partners directly involved in the transaction. An informal ersion of this framework is being loosely applied in the use of the terms business-to-business (B2B); businessto-to-consumer (B2C); business-to-government (B2G); consumer-to-consumer (C2C); and mobile commerce (m-commerce) (Mller, 2004).
y y y
E-markets are simply defined as Web sites where buyers and sellers interact with each other and conduct transactions. The more common B2B examples and best practice models are IBM, Hewlett Packard (HP), Cisco and Dell. Cisco, for instance, receives over 90% of its product orders over the Internet. Most B2B applications are in the areas of supplier management, inventory management, distribution management), channel management, and payment management. E-Marketer projects an increase in the share of B2B e-commerce in total global ecommerce from 9.2% in 2000 to 87% in 2004 and a consequent decrease in the share of B2C ecommerce from 0.8% in 2000 to only 13% in 2004 Table 1 shows the projected size of B2B e-commerce by region for the years 2000-2004
Consumer-to-business (C2B) transactions involve reverse auctions, which empower the consumer to drive transactions. A concrete example of this when competingairlines gives a traveler best travel and ticket offers in response to the travelers post that she wants to fly from New York to San Francisco. There is little information on the relative size of global C2C e-commerce. However, C2C figures of popular C2C sites such as eBay and Napster indicate that this market is quite large. These sites produce millions of dollars in sales every day.
This may well be true for the Asia-Pacific where there are more mobile phone users than there are Internet users.
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y y y y y y y
Search Management Content Management Catalog Management Workflow Management Payment Event Notification Collaboration and Trading
Figure 2: Distribution of E-Commerce Market
by companies.
The usage of E-Commerce instead of traditional trade methods is increased all over the world. Particularly, Europe and U.S.'s markets are satisfied whereas Asia E-Commerce market also needs for new companies and penetration. Distribution of market at 2010 according to the continent can be illustrated as in Figure 2.Europe has more market share than U.S. first time at 2010. However, research is showed that Asia will pass U.S. and Europe.
3.1.
LIMITATION OF E-COMMERCE
E-Commerce has its own limitation besides its benefits. Lack of security and reliability, a lot of hacking incidents are occurred. Also, desire of having best technology causes some problems. Unnecessary technology is sometimes purchased by companies. So it causes huge money lost. However, biggest problem is to need of some hardware. E-Commerce needs to access internet. Internet connection need to cable which is connected to main server that gives the service for customer. The person can purchase on Internet when he have an internet access and this access can be only accomplished if he have a cable in his home through server service. So, new technology need emerges. People should access net without any obligation. When wireless satisfies this demand, new concept occurs, MCommerce. M-Commerce is stand for mobile commerce which means that is the buying and selling of goods and services through wireless technology-i.e., handheld devices such as cellular telephones and personal digital assistants. (Andam, 2003) This new technology is a big Figure 3: Prediction of M-Commerce Market breakthrough. E-Commerce provides companies to chance sell their product 24 hours per day where M-Commerce provide customer to ability to purchase 24 hours. (Sar sakal & Ayd n, 2003) So, it is more useful than E-Commerce. Customer can see products and purchase it when he wants, where he wants. After the year of Iphone and Itablet penetration to the market, 20% of the E-Commerce activities occur with these devices (ZKAN, 2010). In that context, Figure 3 illustrates the previous year number and future prediction about M-Commerce. Prediction of two different companies can also be seen in Figure where Coda Research Consultancy prediction is more logical.
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In here, this report should include why people decide to purchase on Internet. Trust and familiarities are two instincts that affect the decision of purchasing on Internet. According to the researches, E-Commerce market share will continue to raise, nonetheless, never catch traditional trade methods with these structures. Because some people just don't trust to web site in order to purchase something. Trade activities need to interaction between two sides and one negotiation. Customers want to get in touch and face with the dealer. Otherwise, trust can't be formed between the website that is dealer's interface and customers. Since the MCommerce and E-Commerce is occurred within internet connection, money transaction is taken place within Internet, too. This is the main problem that E-Commerce and MCommerce have to face. Some people just don't trust the computer display to give their credit card number because of the fear of unpredictable and misuse of their money. Money isn't the all concern of customers that dealers have to solve. Information may be a bigger problem than that. Dealers are asked to keep customer personal and acquisition information by customer that is persuaded to purchase on Internet. However, big dilemma occurs this very moment. Especially, the willingness to engage in activities where a person is exposed to risk without the ability to control the related behavior of others, and its importance in successful adoption of new technology, make trust a potentially important precondition for E-Commerce. A fact the Internet and credit card industries are apparently well aware of. (Gefen, 2000) In this scope, M-Commerce has its advantages and privileges for some customer where others can't get enough trust from the web site which is basically, interface of some companies. A lack of trust is obtained because of interaction with faceless computer during transaction processes. (College, 2010) In this project, limitation of the E-Commerce is mentioned. Bottleneck of the E-Commerce market is defined and solution will be recommended in previous parts.
Figure 4: Prediction of E-Commerce Market Share over Total Retail Market Sale
within E-Commerce. However, if there is a problem in cable no customer can purchase it. So, customer side of the transaction was interrupted. M-Commerce solved that problem. Even raise of the E-Commerce market is owned to invention of M-Commerce especially to Apple Company that provides its customer non-stop internet access with much more friendly-user
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mode. However, human beings' basic instincts become a problem in there. Trust issues are main problem for the E-Commerce also can be noticed in research and annual number that shows the increment on total E-Commerce market. E-Commerce market is increased with accessibility of Internet increment all over the world but even M-Commerce can't raise ECommerce market share toward traditional methods. It means rate of E-Commerce and total transaction market is constant as you can see in Figure 4. Total transaction level is increased where E-Commerce is also increased but not enough. Researches show that trust and familiarity are main obstacles against ECommerce. Customer chooses to way of inquiring products within Internet but wouldn't buy them. Because the effect of trust was stronger on important case such as purchasing products or services from website using credit card than on less important case such as inquiring about products or services. (Gefen, 2000) E-Commerce usage is increased but not enough for the market pioneers. For that Figure 5: Expected S-Commerce Income reason, solution is sought in order to increase E-Commerce level and effect on total transaction. So, our problem is lack of trust that makes impossible to some customer use ECommerce. Some customer just don't trust on computer display to give and use his/her credit card. Our report tries to give some ideas to break that barrier and let customer that have a fear to use E-Commerce. Our solution offers to use social network for commerce as a new method. Figure 5 illustrates the expected social commerce income.
Nowadays social networks are most used and connected site for internet users. People spend 5.5 hours per day in social networks all over the world. Familiarity exists for customer with social network. We should use that familiarity in order to build up a trust. The companies that belong to some markets have significant number of member in Facebook's page as in Figure
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6. Companies, especially retailer ones, should use that vogue in order to increase their E-sales. Companies seek to way and strategy for S-Commerce (Social Commerce) in order to use that potential.
Real World Case: S-Commerce application from student of Hacettepe University Some students that are studied in Hacettepe University built up a web site in order to satisfy student of Hacettepe University demand that is obtained because of the lack of the social network in the university. The site, which is named as 'beytepe dedikodu', basically aims to give service for student of Hacettepe University. Site founder firstly, try to get a trust from site users. Their privacy is kept really carefully. Students can make comment without showing any name. Mysterious comments provide attractiveness to the site from the student. Gossip from all over the campus can be shared in site under no name, of course students can show their name if they want. Site gain trust so much from students that first day membership appeal number is 1497. We called it as trust because, site founder asked students ID number of Turkey Republic for appeal of membership. End of the week, site's membership number was increased to 4950. Founder of this site want to shape their work in other way, too. Site should be give information about the Hacettepe University student and also special for the students. In that scope, site founders don't want to use Google ads or some other pop-up that can interrupt user of the site. Instead of that income, they thought S-Commerce. Site should include 'wore that' part. Students can make gossip and also describe themselves with clothes. Users can identify themselves as I wore red "Mango" sweatshirt with "Lewis's" jeans. Site founders thought they can make a deal with the clothes brand in order to show their catalogue. Site allows followers of that student that wore red "Mango" sweatshirt and "Lewis's" jeans to purchase the same clothes or even different clothes. User can choose the clothes from catalogues of different brand and see the harmony of those clothes and purchase them. Site gets their cut from those sales. Site founders thought that S-Commerce application should be observed last. Familiarities and trust against to site must be built first, as they thought. However, site can't continue its publication. Because of the money and time issues as all other students affect them, so they can't continue their work. However, site founders thought to shape their site in a proper way of S-Commerce.
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4. CONCLUSION
E-Commerce is a big topic that has potential to change the traditional trade and business method in their roots. It has limitation such as Internet connection need and lack of trustiness. However M-Commerce and S-Commerce strategy can suppress that limitation and also provide huge advantages for the companies. In future, instead of traditional trade method as open a branch at every region, M-Commerce and S-Commerce method and strategy are used.
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5. REFERENCES
Andam, Z. R. (2003). Concept and Definitions. In Z. R. Andam, e-Commerce and e-Business (pp. 6-20). e-ASEAN Task Force-UNDP-APDIP. Bulut, Z. A., ngren, B., & Engin, K. (2006). Kobilerde Elektronik Ticaretin Kullan m : stanbul rne i. Do u niversitesi Dergisi, 150-161. College, S. X. (2010). Introduction to e-Commerce. Kolkata: St. Xavier's College. Dryden, M. J. (2001). BUSINESS-TO-CONSUMER E-COMMERCE STATISTICS. Berlin: COMMITTEE ON CONSUMER POLICY. Gefen, D. (2000, February 14). E-commerce: the role of familarity and trust. The International Journal of Management Science, 725-737. Heeks, R. D. (2005). eCommerce for Small Enterprise Development. Manchester: Institute for Development Policy and Management The University of Manchester. Inc., V. C. (2008). 10 Barriers to eCommerce and Their Solutions. Voloper Creations Inc. Kalayc , C. (2008). E-Commerce and its Effects on SMEs. International Journal of Economica and Administretive Studies, 140-150. Molla, A., & Heeks, R. (2007). Exploring E-Commerce Benefits for Businesses in a Developing Countries. The Information Society, 95-108. Mller, P. D. (2004). ECommerce:Concepts & Technologies. TU Hamburg-Harburg, Software Systems Group. N., L. (1979). Trust and Power. Chichester,: UK: Wiley. O'Brien, J. A. (2008). Electronic Commerce Systems. In J. A. O'Brien, Management Information Systems (pp. 337-377). Irwin/McGraw-Hill. ZKAN, K. M. (2010). Retrieved 12 20, 2011, from Kamil Mehmet ZKAN ki isel sitesi: http://kamilmehmetozkan.com/wordpress/ Sar sakal, M., & Ayd n, M. A. (2003, July). E-Ticaretin yeni yz Mobil Ticaret. Havac l k ve Uzay Teknolojileri Dergisi, 83-90. Schafer, J. B., Konstan, J. A., & Riedl, J. (2000). E-Commerce Recommender Applications. Minnesota: GroupLens Research Project Department of Computer Science and Engineering University of Minnesota Minneapolis.
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