1. E-Commerce

2. 2 What is E-commerce?  Electronic commerce (e-commerce) –A business transaction that occurs over a computer network. –Sometimes called e-business.

3. 3 E-commerce Basics  Bricks-and-Mortars Business –A company or business with a physical location.  Clicks-and-Mortars Business –A company or business with a physical location and an online presence.  Online Presence Only Business –A company or business that exists online only without a physical location. –Theoretically lower cost. –Examples: Amazon.com, E-Trade, and eBay

4. 4 E-commerce  Business-to-Consumer (B2C) –Sale of products or services from a business to the general public.

5. 5 E-commerce  Consumer-to-Consumer (C2C) –Individuals using the Internet to sell products to other individuals. –Online auction, such as eBay

6. 6 E-commerce  Business-to-Business (B2B) –Sale and exchange of products and services between businesses. –Many businesses engage in both B2B and B2C.

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8. 8 Advantages of E-commerce Global market 24/7 Businesses have access to 500 million people with Internet access Customers can conduct price comparisons easily Feedback can be immediate Changing information can be available quickly FAQ (frequently asked questions) pages can provide easy access to customer support Ability to gather customer information, analyze it, and react New and traditional approaches to generating revenue Manufacturers can buy and sell directly, avoiding the cost of the middleman Distribution costs for information reduced or eliminated Options to create a paperless environment

9. 9 What is an electronic storefront?  A Web site where an e-retailer displays its products.  A shopping cart allows a customer to collect and purchase products.  Also called an online catalog.

10. 10 Making Money  There are many different ways to generate money online. –Sale of products and/or services –Subscriptions –Advertising Banners Pop-ups –Web Searches Paid listings Paid inclusion

11. Electronic Payment Systems  Electronic Cash (e-cash or digital cash) –Provides a private and secure method of transferring funds. Privacy is maintained because it hides account information from the vendor. Convenient alternative to credit cards. –Electronic wallets (e-wallets) is software that stores billing and shipping information. Can transfer billing and shipping information to participating Web sites at checkout time. Examples: Microsoft’s Passport & eWalletXpress –PayPal Best known e-cash provider 11

12. E-commerce Limitations  Privacy  Security  Comfort Factor  Technology Driven –Cannot reach users that do not have access to computers and Internet. 12

13. E-commerce Security  Digital Certificates –A type of electronic business card that is attached to Internet transaction data. –Verifies the sender of the data and Web site. –Provided by Certificate Authorities VeriSign & eTrust  Encryption –Uses high-level mathematical functions and computer algorithms to encode data and make it unreadable to snoopers. –Secure Sockets Layer (SSL) is a secure link between you and the Web server that ensures all data transmitted is encrypted. URLs that begin with https:// are using SSL. 13

14. E-commerce Security 14  Secure Sockets Layer (SSL) –Security protocol that encrypts all communications sent between your computer and the Web server.

15. E-commerce Security 15  Secure HTTP (S-HTTP) –An alternative to the popularly used security protocol SSL. –Not the same as HTTPS.

16. 16 Fun Thought… People are more violently opposed to fur than leather because it’s safer to harass rich women than motorcycle gangs.