Trends in E-Commerce www.wileybusinessupdates.com Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Trends in E-Commerce www.wileybusinessupdates.com Chapter 18 Trends in E-Commerce Chapter 18 Copyright © 2017 John Wiley & Sons, Inc.

Learning Objectives Discuss the function of e-commerce. List the major functions of B2B e-commerce. Explain B2C e-commerce. Describe the challenges associated with e-commerce. Discuss how organizations use the web to communicate. Describe the global environment for e-commerce. Discuss building and managing a website. Identify current trends in e-commerce. Learning Objectives for Chapter 18 include: Discuss the function of e-commerce. List the major functions of B2B e-commerce. Explain B2C e-commerce. Describe the challenges associated with e-commerce. Discuss how organizations use the web to communicate. Describe the global environment for e-commerce. Discuss building and managing a website. Identify current trends in e-commerce. Copyright 2017 John Wiley & Sons, Inc.

The Capabilities of E-Commerce E-Commerce- conducting business via Internet. Benefits Global Reach- Allows goods and services to be marketed and sold, regardless of location. Customization- Customize website. Interactivity- Buyers and sellers can communicate, negotiate, and complete transactions online. Right-time and integrated marketing- Online retailers can provide products when and where customers want them. Cost Savings- Can reduce the costs associated with starting and operating a business. Copyright 2017 John Wiley & Sons, Inc.

E-commerce E-commerce offers a wide variety of benefits to consumers. The Vacation Rentals by Owner website provides global reach to its consumers. You can search for a dream vacation spot and soon be enjoying the warm sunshine on your balcony, or list your own rental property regardless of geographic location. Copyright 2015 John Wiley & Sons, Inc.

Business Websites Provides Information about the company and general products Links to other sites (social media) Offers online promotions and shopping Gives opportunities for customer contact. Copyright 2017 John Wiley & Sons, Inc.

Two Main Types Corporate Website- designed to increase visibility, promote and showcase products, publicize socially responsible actions or programs, and provide information such as store locations. Marketing Website- often includes information about company history, products, employment opportunities, and financial information, nut their primary goal is to sell goods or services and build relationships with customers. Copyright 2017 John Wiley & Sons, Inc.

Marketing Websites Overstock.com is a technology-based outlet shopping experience offering customers a wide variety of high-quality products, at great value, with superior customer service. Copyright 2015 John Wiley & Sons, Inc.

B2B E-Commerce Business-to-business (B2B) e-commerce- the use of the Internet for business transactions between organizations. Provides: Detailed product descriptions Payments and other information are transferred on the web. Slash order-processing expenses Copyright 2017 John Wiley & Sons, Inc.

Applications Electronic Data Interchanges- uses computer-to- computer exchanges of invoices, purchases orders, gives price quotations and other sales information between buyers and sellers. Extranets- goes beyond ordering and fulfillment processes by giving selected outsiders access to valuable internal information for better decision making. Virtual Private Networks- protect information traveling over public communications media. Copyright 2017 John Wiley & Sons, Inc.

Applications Electronic Exchanges- online marketplaces that bring buyers and sellers together and cater to a specific industry’s needs. E-procurement- uses web-based systems to enable all types of organizations to improve the efficiency of their procurement processes. Copyright 2017 John Wiley & Sons, Inc.

B2C E-Commerce Business-to-consumer (B2C) e-commerce- selling directly to consumers over the web. Benefits Convenience Lower prices Personalization Copyright 2017 John Wiley & Sons, Inc.

B2C E-Commerce Two Main Types: Shopping Sites- customers can view product info and place orders online. Informational Sites- customers can view detailed product information but they cannot buy anything. Copyright 2017 John Wiley & Sons, Inc.

Electronic Storefronts Websites that sell items to consumers. Examples: Amazon, Ebay, Walmart Blending e-commerce with mobile messaging apps like Facebook and Snapchat has become popular. Builds deeper relationships by communicating to and buying from retail merchants. Copyright 2017 John Wiley & Sons, Inc.

Mobile Commerce In an effort to attract a wider range or brands, social platform and video message app Snapchat is monetizing its services with e-commerce to include shopping sections. Copyright 2015 John Wiley & Sons, Inc.

E-Commerce Challenges Safe online payment Encryption- the process of encoding data for security purposes Security and Privacy TRUSTe- promised to disclose how they collect personal data, what they do with the info, and how they follow the industry’s best practice Fraud The Internet Crime Complaint Center compiles complaints concerning Internet fraud. Phishing: high-tech scam that uses e-mail or pop-up messages to get unsuspecting victims to reveal personal information Channel Conflicts A dispute among producers, wholesalers, and retailers. Copyright 2017 John Wiley & Sons, Inc.

Safe Online Payment Systems VeriSign uses SSL encryption technology to protect businesses and their customers against online cyber attacks. The company also manages the registry of .com and .net domain names. Copyright 2015 John Wiley & Sons, Inc.

Using the Web to Communicate Online Communities- many companies use Internet forums, newsgroups, and web communities that appeal to people who share common interests. i.e.: Social networking sites, chat rooms, forums, e- mail lists, and discussion boards Blogs- a web page that serves as a publicly accessible personal journal for an individual or organization Copyright 2017 John Wiley & Sons, Inc.

Five Tips for Effective Blogging Write on a theme and deliver value. Your content will draw readers and comments to your blog. Writing informative and engaging content will give readers something to talk about. Be consistent. Post new blogs on a regular basis so your readers will know when to check back in for new entries. Consistent content quality is also important. Don’t write only about yourself—write about your readers as well. Each post should include something that will give your readers a reason to keep reading. Give your blog a story that readers will want to follow. If you continue to tell a story throughout your blog posts, it will give readers something to comment on as well as follow from post to post. Ask readers for topic ideas. Posting information that readers have asked about will continue the conversation between the blogger and the reader. Copyright 2017 John Wiley & Sons, Inc.

Web-Based Promotions Video Ads- cut-down version of a TV ad Native Ads- looks like part of the content of a web page and can be sponsored Search engine optimization- process used by a company to increase the number of visitors to its website by providing a search ranking and results via a search engine. Copyright 2017 John Wiley & Sons, Inc. Copyright 2017 John Wiley & Sons, Inc.

Web-Based Promotions In addition to ads that run alongside Internet content, video advertisements are growing in popularity. Advertisements can also be in the form of videos, directly uploaded to YouTube. Copyright 2015 John Wiley & Sons, Inc.

Social Media Social networking sites- websites that provide a virtual community for people to socialize about a particular subject or any topic in general Examples: Facebook, Twitter, and LinkedIn Copyright 2017 John Wiley & Sons, Inc.

The Global Environment for E-Commerce Future growth is linked to global strategy e-commerce. Companies can market their goods internationally, and locate distribution sources and trading abroad. Deliver content internationally, based on the user’s location. One implication: different languages that buyers and sellers speak. Challenges with different cultural backgrounds. Copyright 2017 John Wiley & Sons, Inc.

Developing a Website Planning and Preparation Company’s goal Objectives Create a website in-house or with outside company How customers are most likely to access the site Content and Connections Platforms and hybrid integration strategies Costs Initial investment plus the expense of maintaining the site Copyright 2017 John Wiley & Sons, Inc.

Popular Websites in the United States DESCRIPTION Google Enables users to search the world’s information, including web pages, images, and videos. Facebook A social media website that connects people to keep up with friends and family, upload photos, share links and videos. YouTube Upload, tag, and share videos worldwide. Amazon Seeks to be the most customer-centric website, where customers can find and discover anything they want. Yahoo! A major Internet portal and service provider offering search results, customizable content, and financial news. Wikipedia A free encyclopedia built collaboratively using wiki software. eBay International person-to-person auction site Twitter Social networking and microblogging service utilizing instant messaging, SMS, or a web interface. Bing Search engine, developed by Microsoft that features web, image, video, news, and product search. LinkedIn A networking tool to find connections to recommended job candidates, industry experts, and businesses. Sources: Company website, “Top 15 Most Popular Websites: April 2016,” eBiz MBA Guide, http://ebizmba.com, accessed April 18, 2016; “Top Sites in the United States,” Alexa, http://www.alexa.com, accessed April 18, 2016. Copyright 2017 John Wiley & Sons, Inc.

Measuring Website Effectiveness Profitability Increased brand awareness and brand loyalty Advertisers, in terms of click-through rates Conversion rate, website visitors who actually make purchases Study samples of consumers Copyright 2017 John Wiley & Sons, Inc.

Continuing Trends in E-Commerce A shift from transaction-based commerce, focused on price and efficiency, to experiential commerce, a more immersive experience with the intention of understanding a shopper through their journey. Leveraging technologies across digital and physical channels for a multichannel retail experience. Mobile or m-commerce Mobile payment options Copyright 2017 John Wiley & Sons, Inc.