1. Understanding e-commerce
Chapter One
Understanding e-commerce

2. Learning objectives Evolution of e-commerce
Role of technology in e-commerce
Internet and e-commerce

3. History of e-commerce
History of ecommerce dates back to the year (1991) when the internet was made available for commercial purposes
web sites were allowed to use internet for business transactions
Do business electronically from virtually anywhere in the world that has a computer.
In 2004 alone, e-commerce generated well over $100 billion in retail business and over $1.5 trillion business-to-business traffic.
At first, the term ecommerce meant the process of execution of commercial transactions electronically
leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) were used

4. CONT’D Factors that impacted e-commerce Security
wrong usage of credit information
Privacy
security protocol such as HTTP

5. The Dot Com era
"brick and mortar" retailers recognized the advantages of electronic commerce
first generation e-commerce portal
In spite of ‘dotcom’ burst, the ecommerce sales continued to grow in the next few years
customers prefer e-commerce over tele orders
Today’s Internet promotes individualism.
Case: Amazon.com: synonymous with e-commerce
Case: Dell: An evolutionary e-commerce

6. What is e-commerce
E-commerce is a short version of the term Electronic Commerce
transactions related to online buying and selling of products or services
done using electronic systems such as the Internet and other computer networks
penetration and spread of the internet has fuelled e-commerce
Examples os e-commerce are electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems
definition of e-commerce in modern the modern times implies that it typically uses the World Wide Web at least at any point in the transaction's lifecycle
Online retailers are sometimes known as e-tailers
online retail is sometimes known as e-tail

7. Types of e-commerce
B2B: E-commerce that is conducted between businesses is referred to as Business-to-business
(1) open to the entire public or (2) limited to a group of businesses who have been part of the specific group
business-to-consumer (B2C),
business-to-government (B2G)
All the forms of e-commerce include following steps. i) account acquisition, ii) product discovery through search and browse, iii) price negotiation, iv) payment, and v) product delivery.
In some cases, dispute resolution and customer services may also exist

8. Changing times in e-commerce
Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT).
Automated Teller Machines (ATMs)
growth and acceptance of credit cards, and telephone banking became part of e-commerce
Broadband connections to homes is fulfilling the ultimate mission of e- commerce.
is now the very connectivity of e-commerce.
Bar code scanning is on the way out, replaced by sophisticated biometric technology.
Legal downloading of music, video, and other digital products via the Web is increasing.
Big businesses, as well as small- and medium-sized firms, can afford to develop a Web presence quickly, reliably, and at an affordable cost.
E-commerce has gone international.

9. E-commerce components
Important component of e-commerce based firm is the website
website should have technology that will make it easier for its customers to navigate
site should offer every single feature necessary
fully-functional and sustainable ecommerce web site
stable server for hosting
provide customer specific services
technology partners who constantly upgrade the features as well as technology
help business partners such as logistics partners and suppliers to share and exchange business data
Alternatively SaaS can be used for running these services (reduce cost)

10. E-commerce Versus E-business
Selling goods and services on the retail level with anyone, anywhere, via the Internet
Greater efficiency and effective exchange of goods and services
Exchange based upon transaction
A block of information exchange between the merchant and its customers via the corporate Web site
E-business
Connecting critical business systems and constituencies directly via the Internet

11. E-commerce and Web 2.0 web 2.0 and collaborate
collaboration becomes a mutual touch point for all the stakeholders
aggregating information about people, products and services
reduces time spent searching resources for information, eliminates redundant data
increased relevance, delivering key information to places where it can be used effectively
Digital Convergence - digital devices communicating with one another
Anytime, anywhere, anyone - e-commerce is available to anyone (24/7)
Demand for customized products and services - mass customization puts pressure on firms to handle customized requests on a mass-market scale

12. Business-to-Government (B2G)
The government market is strikingly similar to B2B.
Huge potential for savings in $1.8 trillion federal and $1 trillion state and local expenditures
Changing the status quo in government is not so easy
Changes to employee tasks and job restructuring often create resistance
Tax savings potential is not easily recognized
Committing to technology means constant need for upgrades and additional costs

13. E-commerce Business Models
Storefront Model
Click-and-Mortar Model
Built to Order Merchant Model
Service Provider Model
Subscription-based Access Model
Prepaid Access Model
Broker Model
Advertiser Model
Portal Site Model
Free Access Model
Virtual Mall Model
Virtual Community Model
Infomediary Model

14. Summary
Electronic commerce (EC) is the ability to deliver products, services, information, or payments via networks such as the Internet and the World Wide Web.
Electronic business connects critical business systems directly to key constituents
The rise of specialized Web sites and Web logs (blogs) generated opportunities to read and write on a vast array of topics
Several drivers promote EC: digital convergence
Advantages of EC