E-COMMERCE Web Technology Mia Lagundino ICS 100 Final Project November 30, 2012

Presentation Content What is e-commerce? Types of e-commerce A Little History The Pros and Cons The Process of e-commerce Is e-commerce more profitable than offline businesses? Works Cited

What is e-commerce?  Refers to any form of business transaction done over the Internet  Revolves around buying and selling online  Includes physical products, digital products, and services Physical products Digital products (music etc.) Services (distance education etc.)

Types of e-commerce 1. Business to Business (B2B) o Involves one business buying goods or services from another business 2. Business to Consumer (B2C) o Consumers purchase goods and services from online merchants 3. Consumer to Consumer (C2C) o Consumers sell to each other at popular online auctions 4. Business to Government (B2G) o Help businesses sell to governments

A Little History… The history of e-commerce has a short time line. The e-commerce technologies first appeared in the late 1970’s. Electronic transactions between businesses as well as the exchange of information came from purchasing orders and invoices. The Boston Computer Exchange started in 1982, and was one of the first known examples of e-commerce. Credit cards, ATM machines, and telephone banking came through the 1980’s. By the early 90’s, e-commerce also incorporated enterprise resource planning (ERP), data warehousing, and data mining. As Internet connections became faster and more reliable, the capability e- commerce also boosted. A number of businesses in the United States and Europe became the prospect of serving a global customer. Some of the major pioneers of e-commerce like eBay and Amazon soon became the leaders.

The Pros and Cons

The Pros Why use it? Easy access-24 hrs. a day Reduces transaction cost Access to global market No checkout lines Larger selection Compare prices Search for specific merchandise Eliminates travel time and cost Businesses reach more consumers

The Cons Not everyone has Internet access Possibility of credit card theft and fraud Unable to examine product personally Product may not be available (stock is low) Takes longer for you to get a product Not all items can be purchased online No guarantee of product quality ??????

The Process of e-commerce Transaction

Step 1: The consumer places an order. 1.Merchant’s server sends a message to your browser to add that item(s) number to the cookie. 2.That cookie is stored on your computer. 3.When you check out, the server asks your browser for all the items in your shopping cart. 4.Your browser sends those cookies with an order summary. 5.The merchant’s database retrieves all your selections. Cookie: Contains user information that’s generated by a Web server.

Step 2: The transaction process… 1.The payment gateway provides the transaction process to connect from the merchants part to your payment gateway. 2.The “order now” button is linked to your payment gateway and routes and obtains your card information. 3.The card information is checked and verified to verify the cardholder. 4.Transaction details are displayed on the merchants website. Payment gateway: Coding program that transmits a customer’s credit card order to and from an acquiring bank or merchant provider.

Step 3: The transaction is approved or declined. 1.Customer completes transaction by submitting receipt to the server before disconnecting. 2.Payment getaway confirms processed transaction. 3.Customer and merchant both receives transaction confirmation number for proof of secured transaction.

Step 4: 1.Approved transactions are sent to merchant processor to settle your payment method that you used. The transaction is settled.

Step 5: Order is completed. 1.Order information is sent to warehouse for fulfillment. 2.Shipping carrier picks up shipment. 3.Shipment is finally sent to customer.

More profitable than offline businesses ? More cost-effective Easier to manage Less expenses Increase profit by reaching new customers Saves time and cost of people needed to interact with customers More convenient for B2B e-commerce Inexpensive advertising Helps businesses expand leading to bigger and better opportunities

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