The document provides an introduction to e-commerce, outlining its key benefits and challenges. It discusses how the internet has changed business by enabling communication, information sharing, entertainment, and e-commerce. E-commerce allows for improved customer service, expanded markets through the elimination of boundaries, and cost cutting. However, e-commerce also faces challenges regarding security, fraud, downtime, and a lack of retail experience for some online merchants. The document then examines different categories of e-commerce like business-to-consumer, business-to-business, and consumer-to-consumer models.
The document provides an introduction to e-commerce, outlining its key benefits and challenges. It discusses how the internet has changed business by enabling communication, information sharing, entertainment, and e-commerce. E-commerce allows for improved customer service, expanded markets through the elimination of boundaries, and cost cutting. However, e-commerce also faces challenges regarding security, fraud, downtime, and a lack of retail experience for some online merchants. The document then examines different categories of e-commerce like business-to-consumer, business-to-business, and consumer-to-consumer models.
The document provides an introduction to e-commerce, outlining its key benefits and challenges. It discusses how the internet has changed business by enabling communication, information sharing, entertainment, and e-commerce. E-commerce allows for improved customer service, expanded markets through the elimination of boundaries, and cost cutting. However, e-commerce also faces challenges regarding security, fraud, downtime, and a lack of retail experience for some online merchants. The document then examines different categories of e-commerce like business-to-consumer, business-to-business, and consumer-to-consumer models.
The document provides an introduction to e-commerce, outlining its key benefits and challenges. It discusses how the internet has changed business by enabling communication, information sharing, entertainment, and e-commerce. E-commerce allows for improved customer service, expanded markets through the elimination of boundaries, and cost cutting. However, e-commerce also faces challenges regarding security, fraud, downtime, and a lack of retail experience for some online merchants. The document then examines different categories of e-commerce like business-to-consumer, business-to-business, and consumer-to-consumer models.
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Introduction to E-Commerce
How the Internet has changed
the way we do business. Introduction to E-Commerce
Four Benefits of Internet
Technology
Communication Information Entertainment E-Commerce Introduction to E-Commerce
Internet Technology Provides
Communication Email Chat rooms Spam Introduction to E-Commerce
Internet Technology Provides
Information Newsgroups Portals – AOL, Yahoo Specialized Search Sites Academic Information Introduction to E-Commerce
Internet Technology Provides
Entertainment Webcasts Gambling Games eBooks Introduction to E-Commerce
Internet Technology Provides the
Vehicle for E-Commerce
Electronic Commerce is the
buying, selling, and trading of goods on the Internet. Introduction to E-Commerce
Benefits of E- Commerce Introduction to E-Commerce
Improved Customer Service
Shop-at-home convenience Detailed product information Customer controls transaction Simplified ordering Open 24/7/365 Introduction to E-Commerce
Expanded Markets
Elimination of Boundaries Direct to customer (no middleman) Introduction to E-Commerce
Cost Cutting
Streamlined order processing
Fewer errors in order entry Increased speed Lower marketing costs Introduction to E-Commerce
Higher Profits
Additional sales channel
User fee income Advertising Income Lower marketing costs Introduction to E-Commerce
E-Commerce Challenges
Security & privacy
Scams & Fraud Down time & poor service Awkward design & functionality Lack of retail experience Introduction to E-Commerce
Evolution of a Merchandise Catalog Introduction to E-Commerce Introduction to E-Commerce
http://www.theintelstore.com Introduction to E-Commerce
E-Commerce for Small
Business
Maris Taylor Designs Introduction to E-Commerce Introduction to E-Commerce
http://www.maristaylor.com/ Categories of Electronic Commerce
• Five general e-commerce categories
– Business-to-consumer (Nike ( ) – Business-to-business (Grainger ( BD&A) – Business processes (Monster ( ) – Consumer-to-consumer (ebay ( ) – Business-to-government (Cal-buy ( ) • Supply management or procurement – Departments devoted to negotiating purchase transactions with suppliers (Intel ( ) Elements of Electronic Commerce Categories of Electronic Commerce (Continued) • Transaction – An exchange of value • Business processes – The group of logical, related, and sequential activities and transactions in which businesses engage • Telecommuting or telework – Employee logs in to company computer through Internet instead of traveling to office Electronic Commerce Categories Actual and Estimated Online Sales in B2C and B2B Categories The Second Wave of Electronic Commerce • Defining characteristics of first wave – Dominant influence of U.S. businesses – Extensive use of the English language – Low bandwidth data transmission technologies – Unstructured use of e-mail – Over-reliance on advertising as a revenue source The Second Wave of Electronic Commerce (Continued) • As second wave begins – Future of electronic commerce will be international in scope
– Language translation and handling
currency conversion problem will need to be solved
– E-mail will be used as an integral part of
marketing and customer contact strategies Focus on Specific Business Processes
• Merchandising – Combination of store design, layout, and product display knowledge • Commodity item – Hard to distinguish from the same products or services provided by other sellers – Features have become standardized and well known Focus on Specific Business Processes (Continued)
• Shipping profile
– Collection of attributes that affect how
easily a product can be packaged and delivered
• High value-to-weight ratio
– Can make overall shipping cost a small
fraction of the selling price Value Chain for a Strategic Business Unit Industry Value Chain for a Wooden Chair SWOT Analysis: Evaluating Business Unit Opportunities
• SWOT analysis
– Analyst first looks into the business unit to
identify its strengths and weaknesses
– Analyst then reviews operating
environment and identifies opportunities and threats SWOT Analysis Questions Results of Dell’s SWOT Analysis International Nature of Electronic Commerce
• Companies with established reputations
– Often create trust by ensuring that customers know who they are – Can rely on their established brand names to create trust on the Web • Customers’ inherent lack of trust in “strangers” on the Web – Logical and to be expected This Cartoon from The New Yorker Illustrates Anonymity on the Web Language Issues • To do business effectively in other cultures – Must adapt to culture • Researchers have found that – Customers are more likely to buy products and services from Web sites in their own language • Localization – Translation that considers multiple elements of local environment Culture Issues
• Important element of business trust
– Anticipate how the other party to a transaction will act in specific circumstances
• Culture – Combination of language and customs – Varies across national boundaries – Varies across regions within nations Infrastructure Issues
• Internet infrastructure includes
– Computers and software connected to Internet – Communications networks over which message packets travel • Organization for Economic Cooperation and Development’s (OECD) – Statements on Information and Communications Policy • Deal with telecommunications infrastructure development issues Infrastructure Issues (Continued) • Flat-rate access system – Consumer or business pays one monthly fee for unlimited telephone line usage – Contributed to rapid rise of U.S. electronic commerce
• Targets for technological solutions
– Paperwork and processes that accompany international transactions Parties Involved in a Typical International Trade Transaction
