E-Commerce

Presented by STEFFI SEHDEV

MBA 3rd sem 838

E - Commerce
Sum of 2 terms E stands for electronic

& Commerce means "Commerce is that part of business which is concerned with the exchange of goods and services and includes all those activities which directly or indirectly facilitate that exchange."

What is E-commerce
Distributing, buying, selling and marketing products

and services over electronic systems E-business for commercial transactions Involves supply chain management, e-marketing, online marketing. Uses electronic technology such as: - Internet

History of E-commerce
EC applications first

developed in the early 1970s

- Electronic funds transfer (EFT)

Limited to: - Large corporations - Financial institutions - A few other daring businesses

Categories:Business originating from . . .

Business Business Consumers

Consumers

B2B

C2B

Consumers

B2C

P2P

Distinct Categories of E-Commerce

Business to Business (B2B) refers to the full spectrum of e-

commerce that can occur between two organizations. This includes purchasing and procurement, supplier management, inventory management, channel management, sales activities, payment management &service and support. Examples: FreeMarkets, Dell and General Electric business and consumers, activities tracked are consumer search, frequently asked questions and service and support. Examples: Amazon, Yahoo and Charles Schwab & Co

Business to Consumer (B2C) refers to exchanges between

In other words, it provides a direct sale between the supplier and in the individual consumer.

Distinct Categories of E-Commerce

Peer to Peer (C2C) exchanges involve transactions

between and among consumers. These can include third party involvement, as in the case of the auction website Ebay. Examples: Owners. COM, Craig list, Monster
Consumer to Business (C2B) involves when

consumers band together to present themselves as a buyer in group. Example: www.planetfeedback.com

Key Drivers of E-commerce

Technological degree of advancement of

telecommunications infrastructure Political role of government, creating legislation, funding and support Social IT skills, education and training of users Economic general wealth and commercial health of the nation

 Lower transaction costs - if an e-commerce site is implemented well, the web can significantly lower both order-taking costs up front and

Appeal of E-commerce

customer service costs Larger purchases per transaction People can shop in different ways. The ability to build an order over several days
The ability to configure products and see actual

prices The ability to easily build custom orders The ability to compare prices between multiple vendors easily The ability to search large catalogs easily .

Benefits of E-commerce
To consumers:

24/7 access, more choices, price comparisons, improved

delivery, competition To organizations: International marketplace (global reach), cost savings, customization, reduced inventories, digitization of products/services To society:
flexible working practices, connects people, delivery of public

services

Limitations of E-commerce
To organizations:

lack of security, reliability, standards, changing technology,

pressure to innovate, competition, old vs. new technology To consumers: equipment costs, access costs, knowledge, lack of privacy for personal data, relationship replacement To society: less human interaction, social division, reliance on technology, wasted resources, JIT manufacturing

Technical limitations
There is a lack of universally accepted standards

for quality, security, and reliability The telecommunications bandwidth is insufficient Software development tools are still evolving There are difficulties in integrating the Internet and EC software with some existing (especially legacy) applications and databases. Special Web servers in addition to the network servers are needed (added cost). Internet accessibility is still expensive and/or inconvenient

NEW WORLD OF E COMMERCE

Business opportunities
Efficient channel Large market

Business challenges
Customer attention Customer loyalty

Customer opportunities
Choice convenience

Customer challenges
Finding relevant stuff Trust and privacy

E-Commerce :

How a Transaction Takes Place-3

1 Consumer finds something she wants to buy at a shop on the Net Shop

6 Verification and remittance of actual funds

Consumer sends request for payment to her bank

The electronic bank sends back a secure packet of e-cash Merchant Server

Consumers Bank

Consumer Public Key

Consumer sends the ecash to the shop

The shop sends the packet of cash to its bank

Shop

Merchant Bank

Goods and services ordered online

From e-commerce to m-and f-commerce

Major developments in 2011 Selling online