E-COMMERCE Buying and selling over the Internet. ON-LINE SHOPPING Advantages – consumer Advantages – consumer Can shop the world over Can shop the world.

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Presentation transcript:

E-COMMERCE Buying and selling over the Internet

ON-LINE SHOPPING Advantages – consumer Advantages – consumer Can shop the world over Can shop the world over Do not have to leave home Do not have to leave home Cost savings in travel Cost savings in travel Can shop anytime Can shop anytime Advantages – retailer Advantages – retailer Less sales people Less investment in physical sites Wider customer base

ON-LINE SHOPPING Disadvantages – consumer Disadvantages – consumer Security for paying Security for paying Legitimacy of sites Legitimacy of sites Unsolicited online advertising Unsolicited online advertising Disadvantages – retailer Disadvantages – retailer Wholesalers might sell on their own Unemployment Loss of personal touch

So how do Web sites make

Advertising

IDEA – charge by the number of visitors to the site PORTAL The site you use as your guide to the rest of the Internet.

Another idea!! Get companies to become They pay a % of the sales made through the site.

Did you know YAHOO has become a PORTAL?

And so is MSN SNAP EXCITE Netscape AOL Go Network

How to make Web advertising EFFECTIVE Use a banner ads Use a banner ads Remember applets? Remember applets? Use a live banner ad – allows you to get more information about the product without going to the site Use a live banner ad – allows you to get more information about the product without going to the site Use context-sensitive advertising – ad is related to the subject matter on the screen Use context-sensitive advertising – ad is related to the subject matter on the screen

Disadvantages to users: Takes time to load the graphics Takes time to load the graphics Ads load first Ads load first

A little aside: Do you know what Web analysis software is? This software runs in the background of a site. It makes note of everything it – what site you came from _ what time of day you visited _ how long you stayed _ what files you downloaded

It is used by businesses to analyze the effectiveness of its advertising. Is it invading your privacy?

Call accountant about Taxes  

INTERNET TAX FREEDOM ACT 1.No taxes on Internet access charges 2.No taxes on out-of-state businesses Summary – Internet should be free of new taxes for 3 years.

Sales taxes may only have to be added to purchases if company has a physical presence in your state.

SECURE SOCKETS LAYER (SSL) Standard for encrypting online transaction payments

Two types of E- COMMERCE B2C – business to customer B2B – business to business

FACTS BANDWIDTH – measure of the data transferred BACKBONE – major links Digital/analogue transmission ISDN/DSL – do digital transmission ISP – does analogue transmission

Downloading active audio, video, and animation content.

REALPLAYER a plug-in which allows streaming YAHOO!Events presents live radio and television shows

Ways to send information Unicasting – sends to each recipient Broadcast mode – sends to all Multicasting – sends to selected individuals Push technology/webcasting – information that is sent to you automatically – with your consent

Intranet/Extranet Intranet – private Internet-like network Extranet – An intranet with extra connections (a company and some selected customers

VPN – virtual private network Carves out a private passageway through the Internet PPTP Point to Point Tunneling Protocol Allows use of the Internet to transmit data privately