Chapter1 What is E-Commerce.  E-Commerce  The exchange of goods, services, information, or other business through electronic means  Originated in 1991,

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Presentation transcript:

Chapter1 What is E-Commerce

 E-Commerce  The exchange of goods, services, information, or other business through electronic means  Originated in 1991, when the Internet was opened to commercial use.

 Used by:  Individual consumers  Small businesses  Large corporations  Governments

 Distribution  The movement of products and services from the producer to the consumer.  The right amount of product needs to arrive at the right time. If 50,000 Super Bowl t-shirts arrive in February, they would be sold at a loss to everyone.

 E-Commerce Allows:  Direct Connection Between the manufacturer and the consumer so that products are produced when ordered.

 Examples Dell Computers Michael Dell began assembling computers for people while he was in college in Austin, Texas. Dell does not have a warehouse of computers waiting for you. They make your computer when you place your order, just like fast food. Ford Motor Company Formed new company with Trilogy Software to offer all products online. The website allows customers to buy build-to-order vehicles online.

 Disintermediation  When a traditional channel of distribution is no longer needed, it disappears. Example: Travel Agents and airline tickets/vacations  Reintermediation  The addition of a level of the distribution system  Web sites that assist people in comparison shopping online Example: Auto Insurance, Sears

 Productivity  The amount of output for each hour of work  How does technology affect productivity?  It helps improve productivity because we are able to get more done in a given time period.