How the Internet has changed the way we do business. Introduction to E-Commerce

E-Commerce Electronic Commerce is the buying, selling, and trading of goods on the Internet. Internet Technology Provides the Vehicle for E-Commerce

E-Commerce Benefits of E- Commerce

E-Commerce  Expanded Markets Elimination of Boundaries - Buying a fence for my dog dog Elimination of Boundaries - Buying a fence for my dog dog

E-Commerce  Cost Cutting Disintermediation – going directly to the customer (no middleman) NikeNike Music More music Musicmusic NikeMusicmusic Disintermediation – going directly to the customer (no middleman) NikeNike Music More music Musicmusic NikeMusicmusic

E-Commerce  Cost Cutting Lower marketing costs

Introduction to E-Commerce

Introduction to E-Commerce

E-Commerce  More Cost Cutting Streamlined order processing Fewer errors in order entry Better, cheaper Customer Service Streamlined order processing Fewer errors in order entry Better, cheaper Customer Service

E-Commerce  Improved Customer Service Shop-at-home convenience Detailed product information Customer controls transaction Simplified ordering Open 24/7/365 Shop-at-home convenience Detailed product information Customer controls transaction Simplified ordering Open 24/7/365

Introduction to E-Commerce  Higher Profits Additional sales channel Affiliate Income Income Lower marketing costs Additional sales channel Affiliate Income Income Lower marketing costs

Introduction to E-Commerce E-Commerce Challenges SecuritySecurity & privacy Security Scams & Fraud (Phishing & spoofing) Down time & poor service Awkward design & functionality Lack of retail experience SecuritySecurity & privacy Security Scams & Fraud (Phishing & spoofing) Down time & poor service Awkward design & functionality Lack of retail experience

Categories of Electronic Commerce Five general e-commerce categoriesFive general e-commerce categories –Business-to-consumer (K-Mart) K-Mart –Business-to-business (Grainger BD&A) GraingerBD&AGraingerBD&A –Business processes (Monster) Monster –Consumer-to-consumer (ebay) ebay –Business-to-government (Cal-buy) Cal-buy Supply management or procurementSupply management or procurement –Departments devoted to negotiating purchase transactions with suppliers (Intel) Intel

E-Commerce: The Second Wave, Fifth Annual Edition16 VirusesVirusesViruses Trojan HorsesTrojan HorsesTrojan HorsesTrojan Horses SpywareSpywareSpyware Search Engine OptimizationSearch Engine OptimizationOptimization Yahoo! StoresYahoo! StoresStores