E-Commerce &

Internet Marketing
Objectives for Today
• Define terms (Internet, Web, E-
Commerce, Internet Marketing & E-
Business)
• History of E-Commerce
• Types of E-Commerce activities
 First, let’s clarify terms
Internet Vs. World Wide Web (Web)
• Internet is the global network of computers
• Web is the collection of information which is
accessed via the Internet
• The Internet is infrastructure while the Web
is service on top of that infrastructure
Internet Vs. Web
• The web are the pages you see when you're
at a device and you're online.
• The internet is the network of connected
computers that the web works on, as well as
what emails and files travel across.
Internet Vs. Web
• Internet are like roads that connect towns
and cities together. The world wide web
contains the things you see on the roads like
houses and shops.
• And the vehicles are the data moving around
- some go between websites and others will
be transferring your emails or files across the
internet, separately from the web.
What Is E-Commerce?
• According to Wikipedia, is the buying and
selling of goods and services, or the
transmitting of funds or data, over an
electronic network, primarily the internet.
• It can be spelled as e-commerce or e-
Commerce
What Is E-Commerce?
• Electronic commerce is a process of buying,
selling, transferring, or exchanging products,
services, and information via electronic networks
and computers.
• These include internet, mobiles, telephones, fax
machines, ATMs
What Is E-Commerce?
• Electronic commerce E-commerce uses
strategies such as public relations, referrals,
banner ads.
• Online shopping, online banking,
teleconferencing, electronic tickets, instant
messaging are some of the common business
application related to e-commerce
What Is E-Commerce?
• But in the Philippines, we have expanded the
meaning
• E-Commerce Law or Republic Act 8792
• E-Commerce = Commercial Electronic
Transactions or Non-Commerce Electronic
Transactions
• Both commercial and non-commercial
activities are considered e-commerce
transactions. It is not exclusive to monetary
transactions.
What Are Commercial Activities?
• Acts, events, transactions, or dealings… factoring,
investments, leasing, consulting, insurance, and all
other services.
• Manufacture, processing, purchase, sale, supply,
distribution or transacting in any manner, of tangible
and intangible property of all kinds such as
commodities, goods, merchandise, financial and
banking products, patents, participation, shares of
stock, software, books, works of art and other
intellectual property.
What Are Non-Commercial Activities?
• Discussing business over the telephone
• Sending fax
• Withdrawing money from an ATM machine
• Sending a text message confirming purchase or
making a payment through cellular phone
• Paying for groceries using a credit card
• Ordering a birth or NBI certificate over the
Internet, among others
What Is Internet Marketing?
• It refers to the strategies and techniques that
are used for marketing of the products and
services online.
• Internet marketing strategies include web-
designing, search engine optimization, e-mail
marketing, online promotions, blogs and vlogs.
 Similarities Between
Internet Marketing & E-Commerce
• Internet marketing and e-commerce both deal with
online transactions.
• Internet marketing is a part of e-commerce.
• E-commerce and internet marketing are within the
customer’s reach 24/7 and it is a cost-effective way
of promoting business. Not necessarily
inexpensive.
Differences Between Internet Marketing
& E-Commerce
• E-commerce is a wider concept than Internet
Marketing
• Internet marketing only deals with business
transactions carried through internet, e-mails,
search engines whereas e-commerce carries
business transactions through various electronic
mediums like internet, mobiles, telephones, fax
machines, ATMs, credit cards.
What Is E-Business?
• The business which is done with the help of
internet
• How does it compare with E-Commerce?
• E-Business is not confined to buying and selling of
goods only (unlike e-commerce)
• It includes other activities that also form part of
business like providing services to the customers,
communicating with employees, client or business
partners
 Major milestones
in the history of e- Commerce
• 1991 — Origin of World Wide Web
• In 1989, Sir Tim Berners-Lee shared his first
proposal for an information management
system.
• In October 1990, he had written three
fundamental aspects of today’s web:
HTML: HyperText Markup Language.
URI (or URL): Uniform Resource Identifier.
HTTP: HyperText Transfer Protocol.
 Major milestones
in the history of e- Commerce
• 1994 — Netscape Navigator 1.0 was
 Major milestones
in the history of e- Commerce
• 1994 —Pizza Hut sold its first pizza online
• It was a large pepperoni, mushroom pizza with
extra cheese
 Major milestones
in the history of e- Commerce
• 1995 — Global leader of E-commerce —
Amazon.com sold its first book online. eBay was
founded.
 Major milestones
in the history of e- Commerce
• 1995 — Global leader of E-commerce —
Amazon.com sold its first book online. eBay was
founded.
 Major milestones
in the history of e- Commerce
• 1996 — Online retail sale touched $1 billion
 Major milestones
in the history of e- Commerce
• 1998 — Revolution of online payments
• Originally introduced as Confinity, PayPal made
its appearance on the ecommerce stage as a
money transfer tool.
• By 2000, it would merge with Elon Musk’s
X.Com, online banking company and begin its
rise to fame and popularity.
 Major milestones
in the history of e- Commerce
• 2003 — Apple launches iTunes in April 2003.
• On December 2003, Apple announced that
users have purchased and downloaded more
than 25 million songs. The 25 millionth song,
purchased was “Let it Snow! Let it Snow!” by
Frank Sinatra.
 Major milestones
in the history of e- Commerce
• 2004 — Birth of Facebook
• In February 2004, Mark Zuckerberg launched
“thefacebook.com”. It became facebook.com in
August 2005, after the address was purchased
for $200,000.
 Major milestones
in the history of e- Commerce
• 2005 — YouTube goes online
 Major milestones
in the history of e- Commerce
• 2020- COVID-19 Drives E-Commerce Growth.
• COVID-19 outbreaks around the globe pushed
consumers online to unprecedented levels. By
May of 2020, ecommerce transactions reached
$82.5 billion — a 77% increase from 2019.
Types of E-Commerce Activities
 Business to Consumer (B2C)
• When you purchase goods from the supermarket, that is an
example of Business-to-Consumer (B2C) transaction.
• So when you buy items from your favorite shopping web
sites, that is B2C, e-commerce between businesses and
consumers. The automated reloading of your prepaid phone
is also a B2C transaction.
• Booking a Grab ride and buying an airline ticket is also a
B2C transaction.
 Business to Business (B2B)
• The supermarket will also need to purchase goods from its
suppliers. The business transaction that takes place on this
end is what we would refer to as Business-to-Business
(B2B).
• So when physical retail stores, purchase their goods from
their suppliers that is B2B. E-commerce between
businesses. The same applies to prepaid phone card reload
dealers who purchase credits from their supplier.
• E-commerce enables entrepreneurs to sell their goods
through their own website and related platforms websites
like Lazada
 Consumer to Consumer (C2C)
• E-Commerce is not limited to businesses. Individuals
are also trading directly online through classified sites
like Carousell (formerly OLX) and portals like Shopee,
Ebay.
• This has extended to social media via Facebook,
Pinterest, and Instagram.
 Government to Business (G2B)
• Government has also embraced e-commerce to
serve its constituency. Government to Business
(G2B) examples can include:
• Submitting reports and paying taxes to BIR
• Bidding on government projects through
PhilGEPS.
Government to Consumers (G2C)
• Government to Consumer (G2C) takes place when
citizens:
• Order birth or marriage documents online
• Books for passport renewal
• Apply for NBI clearance
 Objectives for Today
• E-Commerce In the World and the
Philippines
• Traditional Commerce Vs. E-Commerce
• Advantages & Disadvantages of E-
Commerce
Can You Guess It Right?
 JA N GLOBAL DIGITAL HEADLINES OB
AL DA

TA
GL
2021 ESSENTIAL HEADLINES FOR MOBILE, INTERNET, AND SOCIAL MEDIA USE AROUND THE WORLD
EA

H
INTERNET USER NUMBERS N O LONGER INCLUDE DATA SOURCED FROM SOCIAL MEDIA PLATFORMS, S O VALUES ARE NOT COMPARABLE WITH PREVIOUS REPORTS D LI N E

S
UNIQUE MOBILE INTERNET ACTIVE SOCIAL
TOTAL PHONE USERS USERS* MEDIA USERS*
POPULATION

7.83 5.22 4.66 4.20

BILLION BILLION BILLION BILLION
URBANISATION: vs. POPULATION: vs. POPULATION: vs. POPULATION:

56.4% 66.6% 59.5% 53.6%

SOURCES: THE U.N.; LOCAL GOVERNMENT BODIES; GSMA INTELLIGENCE; ITU; GWI; EUROSTAT; CNNIC; APJII; SOCIAL MEDIA PLATFORMS’ SELF-SERVICE ADVERTISING TOOLS; COMPANY
7 EARNINGS REPORTS; MEDIASCOPE. *ADVISORIES: INTERNET USER NUMBERS N O LONGER INCLUDE DATA SOURCED FROM SOCIAL MEDIA PLATFORMS, SO VALUES ARE NOT COMPARABLE
TO DATA PUBLISHED IN PREVIOUS REPORTS. SOCIAL MEDIA USER NUMBERS MAY NOT REPRESENT UNIQUE INDIVIDUALS.  COMPARABILITY ADVISORY: SOURCE AND BASE CHANGES.
 2021
JA N THE PHILIPPINES
ESSENTIAL HEADLINES FOR MOBILE, INTERNET, AND SOCIAL MEDIA USE
CHANGES TO DATA SOURCES FOR INTERNET USERS AND SOCIAL MEDIA USERS MEAN THAT VALUES ARE NOT COMPARABLE WITH PREVIOUS REPORTS THE PHILIPPINES
!
ACTIVE SOCIAL
TOTAL MOBILE INTERNET MEDIA USERS
POPULATION CONNECTIONS USERS

110.3 152.4 73.91 89.0 0

MILLION MILLION MILLION MILLION
URBANISATION: vs. POPULATION: vs. POPULATION: vs. POPULATION:

47.6% 138.2% 67.0% 80.7%

SOURCES: THE U.N.; LOCAL GOVERNMENT BODIES; GSMA INTELLIGENCE; ITU; GWI; EUROSTAT; CNNIC; APJII; OCDH; SOCIAL MEDIA PLATFORMS’ SELF-SERVICE ADVERTISING TOOLS; COMPANY
17 EARNINGS REPORTS; MEDIASCOPE; CAFEBAZAAR.  COMPARABILITY ADVISORY: SOURCE CHANGES. INTERNET USER NUMBERS N O LONGER INCLUDE DATA SOURCED FROM SOCIAL MEDIA
PLATFORMS, SO DATA ARE NOT COMPARABLE WITH PREVIOUS REPORTS. SOCIAL MEDIA USER NUMBERS MAY NOT REPRESENT UNIQUE INDIVIDUALS, SO MAY EXCEED INTERNET USER NUMBERS.
 JA N POPULATION
ESSENTIALS THE PHILIPPINES

2021 POPULATION DEMOGRAPHICS AND OTHER KEY INDICATORS

TOTAL FEMALE MALE ANNUAL CHANGE MEDIAN
POPULATIO N POPULATIO N POPULATIO N IN TOTAL POPULATION AGE

110.3 49.8% 50.2% +1.3% 25.8

MILLION

URBANISATION POPULATION DENSITY OVERALL LITERACY FEMALE LITERACY MALE LITERACY

OF POPULATION (PEOPLE PER KM2) (ADULTS AGED 15+) (ADULTS AGED 15+) (ADULTS AGED 15+)

47.6% 370.0 98.2% 98.2% 98.1%

SOURCES: EXTRAPOLATIONS OF DATA PUBLISHED BY: THE UNITED NATIONS; THE U.S. CENSUS BUREAU; THE WORLD BANK; UNESCO; UNICEF; THE CIA WORLD FACTBOOK; PEW RESEARCH;
19 INDEXMUNDI; PHRASEBASE; ETHNOLOGUE (ALL ACCESSED JAN 2021). NOTE: THE UNITED NATIONS DOES NOT PUBLISH POPULATION DATA FOR GENDERS OTHER THAN ‘FEMALE’ OR ‘MALE’.
 JA N DEVICE OWNERSHIP
2021 PERCENTAGE OF INTERNET USERS AGED 16 TO 64 THAT OWNS EACH KIND OF DEVICE THE PHILIPPINES

MOBILE PHONE SMART NON- LAPTOP OR DESKTOP TABLET

(ANY TYPE) SMARTPHON E COMPUTER DEVICE
PHO N E MOBILE PHONE

98.6% 98.5% 13.3% 77.3% 33.2%

TV STREAMING GAMES SMART HOME SMART WATCH VIRTUAL
STICK OR DEVICE C O N SOLE DEVICE OR WRISTBAND REALITY DEVICE

10.3% 14 .4% 4 .6% 2.5%

21
11.4%
SOURCE: GWI (Q3 2020). FIGURES REPRESENT THE FINDINGS OF A BROAD GLOBAL SURVEY OF INTERNET USERS AGED 16 TO 64. SEE GLOBALWEBINDEX.COM FOR MORE DETAILS.
 JA N GLOBAL ECOMMERCE ACTIVITY OVERVIEW OB
AL DA

TA
GL
2021 PERCENTAGE OF GLOBAL INTERNET USERS AGED 16 TO 64 THAT REPORTS PERFORMING EACH ACTIVITY IN THE PAST MONTH EA

H
D LI N E

S
SEARCHED ONLINE FOR VISITED AN ONLINE USED A SHOPPING PURCHASED A PURCHASED A
A PRODUCT OR RETAIL SITE OR STORE APP O N A MOBILE PRODUCT ONLINE PRODUCT ONLINE
SERVICE TO BUY (ANY (ANY DEVICE) PHONE OR O N A (ANY DEVICE) VIA A MOBILE PHONE
DEVICE) TABLET

81.5% 90.4% 69.4% 76.8% 55.4%

14 SOURCE: GWI (Q3 2020). FIGURES REPRESENT THE FINDINGS OF A BROAD SURVEY OF INTERNET USERS AGED 16 TO 64. SEE GLOBALWEBINDEX.COM FOR MORE DETAILS.
 JA N ECOMMERCE ACTIVITY OVERVIEW
2021 PERCENTAGE OF INTERNET USERS AGED 16 TO 64 THAT HAS PERFORMED EACH ACTIVITY IN THE PAST MONTH THE PHILIPPINES

SEARCHED ONLINE FOR VISITED AN ONLINE USED A SHOPPING PURCHASED A PURCHASED A

A PRODUCT OR RETAIL SITE OR STORE APP O N A MOBILE PRODUCT ONLINE PRODUCT ONLINE
SERVICE TO BUY (ANY (ANY DEVICE) PHONE OR O N A (ANY DEVICE) VIA A MOBILE PHONE
DEVICE) TABLET

89.3% 87.8% 85.7% 80.2% 69.6%

71 SOURCE: GWI (Q3 2020). FIGURES REPRESENT THE FINDINGS OF A BROAD SURVEY OF INTERNET USERS AGED 16 TO 64. SEE GLOBALWEBINDEX.COM FOR MORE DETAILS.
Traditional Vs. E-Commerce
BASIS FOR TRADITIONAL
E-COMMERCE
COMPARISON COMMERCE
Processing of Manual Automatic
Transactions
Accessibility Limited Time 24×7×365
Physical Goods can be Goods cannot
inspection inspected be inspected
physically before physically before
purchase. purchase.
Customer Face-to-face Screen-to-face
interaction
Traditional Vs. E-Commerce
BASIS FOR TRADITIONAL
E-COMMERCE
COMPARISON COMMERCE
Scope of business Limited to Worldwide reach
particular area.
Payment Cash, cheque, Credit card, fund
credit card, etc. transfer etc.

Delivery of goods Instantly Takes time

Privacy No need for Personal

personal information is
information required
Advantages & Disadvantages
of
E-Commerce
Advantages of Doing E-Commerce
1. Improved customer service
• Banks with big ATM network/presence tend to get a large
share of depositors as well.
• Online banking has also evolved allowing deposits to pay
their bills and transfer funds to 3rd parties online.
• Government agencies like the Department of Foreign
Affairs used their online presence to make passport
application and renewal manageable.
Advantages of Doing E-Commerce
2. Increased revenue
• A large number of businesses today have extended
their reach online by making their products
available through online portals like and generate
sales.
• Like Zalora for clothing and fashion brands, Food
Panda for food, Agoda for hotel
Advantages of Doing E-Commerce
3. Access international market
• Sites like Alibaba also allows Filipinos to look for
potential products and suppliers.
• For businesses, it can also serve as a site to promote
products for export.
• For online service IWantTV, their service allowed
anyone in the world to watch ABS-CBN TV
programs and subscribe to it.
Advantages of Doing E-Commerce
4. Customer information and trading
exchange
• Classified sites like Carousell provided a
venue where a buyer can also be seller. Its
reputation scoring serve as means to guide
anyone who would like to trade whether to
trust or not.
Advantages of Doing E-Commerce
5. Increased customer loyalty
• Airlines like Cebu Pacific and Philippine
Airlines were able to maximize the use of
online facilities to sell tickets way ahead of
time by offering great deals
• McDonalds & Jollibee use their online
presence to allow their customers to order
online and have them delivered to their
doorsteps.
Advantages of Doing E-Commerce
6. Improve competitive position
• Using job sites like Jobstreet, OnlineJobs.ph,
WorkAbroad.ph allows applicants to know
ahead on what they need to make themselves
competitive in the job market
Advantages of Doing E-Commerce
7. Reduce procurement and operation cost
• For service providers and freelancers, they can now
bid online though Upwork.
• Businesses who also would like to bid for government
requirements can also check PhilGEPS
Advantages of Doing E-Commerce
8. Attract long-term investment
• The Internet has serve as a popular venue to market
products and services that will require long term
investment on the part of buyers.
• For real estate portals like Lamudi, Property24,
Carmudi, Filipinos have the opportunity to scout for
potential investments (like home or car) that suit their
needs and budget.
Advantages of Doing E-Commerce
9. Venue for trial marketing
• Instead of just advertising with no guaranteed returns,
deal sites like Metrodeal give companies a channel
where they can market their products and services
where the customer pay to avail it at discounted rates.
• This way, the advertising money is spent on companies
who avail of the special offer instead.
There are also disadvantages
• The buyer cannot touch or feel the product online.
• The customer has to wait for delivery of their product.
• Perishable goods bought online can get spoiled during
delivery.
• E-commerce is fully dependent on internet connection
• Some products are difficult to buy online
There are also disadvantages
• It is difficult to know when an online site is safe to
use.
• Huge technological & labor cost
• Lack of privacy
• If it is an international purchase, the product may be
taxed when it arrive at customs.
• Sometimes the review can be created manually to lure
the customer to buy the product with wrong intention
of selling
Thanks!
Any questions ?