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the Internet. or Electronic commerce is doing commerce with the use of computers, networks and commerce-enabled software (more than just online shopping)
Brief History
1970s: Electronic Funds Transfer (EFT) Used by the banking industry to exchange account information over secured networks Late 1970s and early 1980s: Electronic Data Interchange (EDI) for e-commerce within companies Used by businesses to transmit data from one business to another 1990s: the World Wide Web on the Internet provides easyto-use technology for information publishing and dissemination Cheaper to do business (economies of scale) Enable diverse business activities (economies of scope)
Features of E-Commerce
1) 2) 3) 4) 5) 6) 7) 8) 9) payment:Enabling credit card, smart cards, E-Money and other payments along with electronic funds transfer. Service availability:It automates the conduct of business among enterprises, customers, suppliers and employees anytime, anywhere. Advertising and marketing:Advertising products and services. sales:Generating orders for the product. fulfillment:Processing the order and delivering the product. support:Providing pre and post sale assistance to generate more sales. Inventory Management:Maintaining and reporting inventory status. Secure communications:Fast, efficient, reliable communication with customers and parteners. It allows to gather information from customers, while delivering a marketing and sales pitch through a web site.
Elements of E-commerce
1. 2. 3. 4. 5. 6. 7. 8. 9. a product. A place to sell the product. Here the website displays the product in some way. A way to get people to come to your web site. A way to accept orders. A way to accept money. A fulfillment facility to ship product to customers. A way to accept returns. A way to handle warrantee claims if necessary. A way to provide customer service.
E-commerce Categories
There are five general e-commerce categories:
Business to Consumer (or B2C) e-commerce Business to Business (or B2B) e-commerce (sometimes called e-procurement) Consumer to Business (or C2B) e-commerce Consumer-to-consumer (or C2C) ecommerce Business-to-government (or B2G) ecommerce
Business-to-business (B2B)
B2B web sites sell the product to the intermediate buyer who takes the product to the final consumer.
Business organization
wholesaler
Website.
customer
Business-to-consumer(B2C)
It is a website where all transactions takes place between a business organization and the final consumer.
website
Business organization
customer
Consumer to consumer(C2C)
In this category consumer sell directly to consumers.
Places an advertisement
Consumer-to-business(C2B)
In such sites, the consumer places an estimate of the amount of money he is willing to spend for a particular service..
Business to government(B2G)
1. 2. 3. B2G website is a variation of the B2B website. It is a website used by the government to exchange information and trade with various organizations across the world. B2G web site would: Be accredited by the government. List all the rules and regulations pertaining to the specific industry. Provide a medium for the submission of forms and applications to the government.
Business organization
website
Government.
website government
E-commerce applications
Supply chain management Video on demand Remote banking Procurement and purchasing Online marketing and advertisement Home shopping Auctions
Benefits to organization
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. E-commerce expands the market place to national and international markets. It decreases the cost of creating, processing, distributing, storing. Ability for creating highly specialized business. It reduces the time between outlay of capital and the receipt of product & services. It allows to reduce inventories. Improved image. Improved customer service. New found business partners. Simplified processes. Compressed cycle and delivery time. Increased productivity. Eliminating paper. Reduced transportation cost. Increased flexibility.
Benefits to consumers
1. 2. 3. 4. 5. 6. 7. Customers can do transactions 24 hours a day. It provides customers with more choices. It allows quick delivery. It provides customers with less expensive products and services by allowing them to shop in many places and conduct quick comparisons. Customers can participate in virtual auctions. Customers can receive relevant and detailed information in seconds, rather than in days. It facilitates competition, which results in substantial discounts.
Non-Technical Limitations.
1. 2. 3. 4. 5. 6. Lack of touch and feeling online. Still evolving and changing rapidly. Many legal issues are as yet unresolved. There are not enough sellers and buyers. There are not enough support services. Accessibility to internet is still expensive.
ECOMMERCE FRAMEWORK
ECOMMERCE APPLICATIONS Policy, Legal, Privacy Issues Technical Common Business Services Standards For Messaging & Info Distribution Documents Security Multimedia Content & Network Network Publishing Protocols Network
1. 2.
3. 4. 5. 6.
Common Business Services:- for facilitating the buying and selling process. Messaging and information distribution:- as a means of sending and retrieving information. Multi-media content and network publishing:- for creating a product and a means to communicate about it. The information Superhighway:- for providing the highway system along which all e-commerce must travel. Information and multimedia content:- it determines what kind of vehicle is needed. Technical standards:these are final pillars without which the impact of this revolution would be minimized. Standards are crucial in the world of e-commerce, to ensure not only `