1. INTRODUCTION
E-COMMERCE

2. Table of Contents E-Commerce overview 1.1 Definition of e-commerce
1.2 Brief history of e-commerce
E-Commerce categories
2.1 Two major categories
2.2 Other categories
Benefits of e-commerce
3.1 Benefits to organizations
3.2 Benefits to consumers
Business applications
Online shopping
Interesting facts and figures
Summary and Conclusion
References

3. E-Commerce Overview Definition of E-Commerce
Brief History of E-Commerce 1

4. Definition of E-Commerce
E-Commerce or Electronic commerce is a process of buying, selling, transferring, or exchanging products, services, and/or information via electronic networks and computers

5. Definition of E-Commerce
‘Formulating commercial transactions at a site remote from the trading partner and then using electronic communications to execute that transaction.’
The definition includes business to business and business to consumer transactions.

6. Brief History of E-Commerce
E- commerce meant the facilitation of commercial transactions electronically, using technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT), allowing businesses to send commercial documents like purchase orders or invoices electronically.

7. Brief History of E-Commerce (cont)..
The growth and acceptance of credit cards
Automated teller machines (ATM)
Telephone banking
Airline reservation system 2

8. Brief History of E-Commerce (cont)..
The Internet commercialized and users flocked to participate in the form of dot-coms, or Internet start-ups
Innovative applications ranging from online direct sales to e-learning experiences

9. Brief History of E-Commerce (cont)..
Many European and American business companies offered their services through the World Wide Web.
Since then, People began to associate a word “e-commerce”

10. E-Commerce Categories
Two major categories
Other categories 3

11. Two Major Categories Business-to-consumer (B2C) :
Online transactions are made between businesses and individual consumers. E.g. Amazon.com, eBay.com.
Business-to-business (B2B):
Businesses make online transactions with other businesses.

12. Other Categories Consumer-to-consumer (C2C)
Mobile commerce (m-commerce)
E-learning
E-government 4

13. Benefits of E-Commerce
Benefits to organizations
Benefits to consumers 5

14. Benefits to organizations
Global reach
Cost reduction
Supply chain improvements
Extended hours: 24/7/365
Customization
Improved customer relations

15. Benefits to consumers More products and services
Cheaper products and services
Instant delivery
Information availability
Participation in auctions

16. Business applications
Instant messaging
Online shopping and order tracking
Online banking
Shopping cart software
Teleconferencing
Electronic tickets

17. Online Shopping
Online shopping is the process of buying goods and services from merchants who sell on the Internet
Online consumers are evenly split between men and women and tend to be better educated, younger, and more affluent than the general population

18. Online Shopping (cont)..
Advantages:
24-hour access
Ability to comparison shop
The in-home privacy
Variety 6

19. Online Shopping (cont)..
Favourite websites for shopping include those featuring:
Event tickets
Online periodicals subscription
Flowers and gifts
Consumer electronics
Travel

20. Online Shopping (cont)..7
How do you buy something

21. Interesting Facts and Statistics8
Every 1.2 seconds, a Canadian makes a purchase with their PayPal account
Almost 20 per cent of Canadians make three or more online purchases per month (comScore 2009).

22. Interesting Facts and Statistics (cont..)
Ninety per cent of Canadians do their online shopping exclusively from home and only one per cent of Canadians shop online exclusively from work (comScore 2009).
Experts predict that online sales will reach US$328 billion by 2010

23. E-Commerce technologies
The three e-Commerce technologies are:
Electronic Markets
Electronic Data Interchange
Internet Commerce

24. Electronic markets
The use of information and communications technology to present a range of offerings available in a market segment and hence enable:
the purchaser to compare the prices (and other attributes);
make a purchase decision.
The usual example of an electronic market is an airline booking system.

25. Electronic markets
There is the potential for new electronic markets to be created using Internet technologies.

26. Electronic Data Interchange (EDI)
EDI provides a standardised system for coding trade transactions so that they can be communicated directly from one computer system to another.
EDI removes the need for printed orders and invoices and avoids the delays and errors implicit in paper handling.

27. Electronic Data Interchange (EDI)
EDI is used by organisations that make a large number of regular transactions. Examples are the large supermarket chains and the vehicle assemblers which use EDI for transactions with their suppliers.

28. Internet commerce
Information and communications technologies can also be used to advertise and make once-off sales of a wide range of goods and services.
This type of e-Commerce is typified by the commercial use of the Internet. The Internet can, for example, be used for the purchase of books that are then delivered by post or the booking of tickets that can be picked up by the clients when they arrive at the event.

29. Internet commerce
It is to be noted that the Internet is not the only technology used for this type of service and this is not the only use of the Internet in e-Commerce.

30. The trade cycle
Conducting a commercial transaction involves the following steps:
Pre-Sale:
Search - finding a supplier
Negotiate – agreeing the terms of trade
Execution:
Order
Delivery
Settlement:
Invoice
Payment
After-sales, e.g. warrantee and service