1. What is Commerce? “Seller” “Buyer” Transaction Basic Computer ConceptsØ
Commerce, or doing business, is a negotiated
exchange of valuable objects or services
between at least two parties and includes all
activities that each of the parties undertake to
complete the transaction.
Commerce is the activities of buying and
selling.
Transaction
Process
“Seller”
Trends and Issues - Ecommerce
“Buyer”

2. Defining E-Commerce communications perspectives
Basic Computer Concepts
Defining E-Commerce
(EC) Ø
Electronic commerce is an emerging concept
that describes the process of buying and
selling or exchanging of products, services and
information via computer networks including
the Internet.
E-Commerce can be defined from these
perspectives:
communications perspectives
business process perspective
service perspective
online perspective v
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3. Origins and Growth Basic Computer Concepts of E-CommerceØ
Electronic funds transfers (EFTs or wire
transfers): electronic transmissions of account
exchange information over private networks.
Electronic data interchange (EDI): occurs when
one business transmits computer-readable data
in a standard format to another business.
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4. Basic Computer Concepts Features of E-Commerce Technology
Unique of E-commerce Technology and their
Business Significance: Ø
is ubiquitous
has global reach
operates according to universal standards
provides information richness
is interactive
increases information density
permits personalization
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5. Basic Computer Concepts Advantages of E- Commerce
E-Commerce benefits to merchants:
Increase sales opportunities for the seller
Reduce operational costs
Increase purchasing opportunities for the buyer
Provide wide range of choices
Use the web to target their offers to a niche
market
"The store is always open!"
Establish better relationships with customers
Low cost information distribution
Increased speed to market
Expanded delivery channels
Global exposure and reach ü
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6. Basic Computer Concepts Advantages of E- Commerce
E-Commerce benefits to consumers:
Convenience
Informative
Value presented upfront: Demo and free
download
No long wait times
Easy flow and navigation
Search capabilities
Engaging presentation
Constant updates
Easy to buy ü
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7. Disadvantages of Basic Computer Concepts E-Commerce
Cost and Justification
Security and Privacy
Lack of trust and user resistance
Other limiting factors û
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8. Major Types of Business-to-Consumers (B2C) Business-to-Business (B2B)
Basic Computer Concepts
Major Types of
E-Commerce
Market relationships
Business-to-Consumers (B2C)
Business-to-Business (B2B)
Consumer-to-Consumer (C2C)
“Seller”
Business
Consumer
Transaction
Process
B2B
B2C
C2B
C2C
“Buyer”
Business
Consumer
Technology-based
Peer-to-Peer (P2P)
Mobile Commerce (M-Commerce)
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9. B2B E-Commerce Basic Computer Concepts
Electronic means for business to business
interaction
Examples: Ø
Online purchasing
Online supplier integration
Online information services v
Ø Largest form of e-commerce
Ø Other models have developed
§ e-distributors
§ infomediaries
§ B2B service providers
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10. B2C E-Commerce Basic Computer ConceptsØ
Electronic means for business to customer
interaction
Examples:
• online shopping
• online service
• online technical support
Most commonly discussed type
Online businesses attempt to reach individual
consumers
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11. C2B E-Commerce Basic Computer ConceptsØ
Electronic means for customer to business
interaction
Examples:
• Answering to surveys
• Sharing/selling customer’s
preferences
• Providing reviews, ratings,
etc.
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12. C2C E-Commerce Basic Computer Concepts
Electronic means for customer to customer
interaction
Examples: Ø
• Online auctions (with intermediary?)
• Online classified ads
• Online communities
Ø Provide a way for consumers to sell to each
other
Ø Consumer:
§ prepares the product for market
§ places the product for auction or sale
§ relies on market maker to provide catalog,
search engine, and transaction clearing
capabilities
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13. P2P E-Commerce Basic Computer ConceptsØ
Peer-to-Peer technology enables Internet users
to share resources without going through a
central server
Ex: Napster: uses P2P to find and share online
music
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14. M-Commerce Wireless digital devices enable transactions on the Web
Basic Computer Concepts
M-Commerce
Wireless digital devices enable
transactions on the Web
Uses personal digital assistants (PDAs) to
connect
Used most widely in Japan and Europe Ø
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