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E-Com ch1

E-commerce refers to the buying and selling of products, services, and information over computer networks, primarily the internet. It offers benefits such as access to new markets, reduced marketing costs, and improved customer service. The document also discusses the history of e-commerce, its different organizational types, and the unique features of e-commerce technology.

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Daniel Mehari
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4 views18 pages

E-Com ch1

E-commerce refers to the buying and selling of products, services, and information over computer networks, primarily the internet. It offers benefits such as access to new markets, reduced marketing costs, and improved customer service. The document also discusses the history of e-commerce, its different organizational types, and the unique features of e-commerce technology.

Uploaded by

Daniel Mehari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter One

The basics of E-Commerce

E-Commerce
(COSC 431)
1
What is e-Commerce?

E-commerce is a concept that describes the

process of buying and selling or exchanging

of products, services, and information via

computer networks including the internet.

 Electronic commerce is a set of

2
technologies, applications, and business
Benefit of e-Commerce
Access new markets and extend service

offerings to
customers
Broaden current geographical parameters

to operate globally
Reduce the cost of marketing and

promotion
3
Improve customer service
EC Organizations
Brick-and-mortar organizations

Old-economy organizations (corporations)


that perform most of their business off-line,
selling physical products by means of
physical agents
 Virtual (pure-play) organizations

Organizations that conduct their business


activities solely online
 Click-and-mortar(click-and-brick)
4
History of E-commerce
 The history of e-commerce is a history of how

Information Technology has transformed business


processes.
 Some authors will track back the history of e-

commerce to the invention of the telephone at the


end of last century.
 EDI (Electronic Data Interchange) is widely viewed

as the beginning of e-commerce if we consider e-


commerce as the networking of business

5 communities and digitalization of business


Contd..
• EDI has never reached the level of popularity of the

web-based ecommerce for several reasons:


• High cost of EDI prohibited small businesses and medium-sized

companies from participating in the electronic commerce;

• Slow development of standards hindered the growth of EDI; and

• The complexity of developing EDI applications limited its

adaptation to a narrow user base.

6
The Internet and the Web
The Internet was conceived in 1969, when the Advanced

Research Projects Agency (a Department of Defense


organization) funded research of computer networking.
The Web became a popular mainstream medium
(perceived as the fourth mainstream medium in addition
to print, radio and TV) in a speed which had never been
seen before.
The Web users and content were almost doubled every

a couple of months in 1995 and 1996.

7
Contd..
The Internet and the Web have overcome the

technical difficulty of EDI, but it has not solved the


problem of slow development of

e-commerce standards.
Web Services offers a flexible and effective

architecture for the implementation of e-commerce


Advance in technology lead to the development of

wireless networking and Mobile devices which


increase the popularity of e-commerce
8
Where EC is conducted
1. Electronic market (e-marketplace)
An online marketplace where buyers and
sellers meet to exchange goods, services,
money, or information
2. Interorganizational information systems
(IOSs)
Communications system that allows routine
transaction processing and information flow
between two or more organizations
9
3. Intraorganizational information systems
E-commerce vs. E-business
The Difference Between E-commerce and E-Business Diagram

10
E-business:

Digital enablement of transactions


and processes within a firm,
involving information systems under
firm’s control
Does not include commercial
transactions involving an exchange
of value across organizational
boundaries
11
…
Continue

E-commerce involves:
 Digitally enabled commercial
transactions between organizations
and individuals.
 Commercial transactions involve
the exchange of value across
organizational or individual
12
boundaries in return for products or
How e-Commerce Works
The consumer first moves through the
internet to the merchant’s web site.
At the web site, the consumer is briefly

gained an introduction to the product or


services the merchant offers.
At this point the consumer makes the
decision to visit the web store by clicking on
a link or button located on the web page
13
(e.g., Buy Now, Shop Online, or an image of a
…
Continue
• After choosing to visit the web store, the consumer is

typically connected to an online transaction server

located somewhere else on the internet which runs

software commonly referred to as a shopping cart

application.

• The shopping cart application has been setup by the

merchant to display all products and services offered, as

14 well as calculate pricing, taxes, shipping charges, etc.


…
Continue
• From there, the consumer decides that he wants to

purchase something, so he enters all pertinent credit

card information and a sales order is produced.

15
What you need to have e-
commerce site

There are several basic steps you will


need to accomplish before becoming
Commerce Enabled.
Getting a Merchant Bank Account

Web Hosting

Web Design Considerations

Registering a Domain Name


16
Obtaining a Digital Certificate
Unique Features of E-commerce
Technology
1. Ubiquity
2. Global reach
3. Universal standards
4. Information richness
5. Interactivity
6. Information density
7. Personalization/customization

17
Seven Unique Features of E-commerce
Technology and Their Business Significance

18

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