1. Buying and selling over the Internet
E-COMMERCE
Buying and selling over the Internet

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

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

4. So how do Web sites make
MONEY

5. Advertising

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

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

8. Did you know YAHOO has become a PORTAL?

9. And so is
MSN
SNAP
EXCITE
Netscape
AOL
Go Network

10. How to make Web advertising EFFECTIVE
Use a banner ads
Remember applets?
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

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

12. 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

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

14. Call accountant about
Taxes JK c

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

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

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

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

19. TRAFFIC JAMS

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

21. Downloading active audio, video, and animation content.
STREAMING
Downloading active audio, video, and animation content.

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

23. 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

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

25. 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