E-Commerce

Definitions and Concepts Pure versus Partial Electronic Commerce depends on the degree of digitization involved. Brick-and-mortar organizations Virtual organizations Click-and-mortar organizations

Types of E-Commerce Business-to-Consumer (B2C) Business-to-Business (B2B) Consumer-to-Consumer (C2C)

Types of E-Commerce (continued) Business-to-Employee (B2E) E-Government Mobile Commerce (m-commerce)

E-Commerce Business Models Online direct marketing Electronic tendering system Name-your-own-price Find-the-best-price

E-Commerce Business Models (continued) Viral marketing Group purchasing Online auctions Bartering Online Affiliate marketing

E-Commerce Business Models (continued) Product customization : customers use the Internet to self-configure products or services. Sellers then price them and fulfill them quickly. Deep discounters company offers deep price discounts. Membership only members can use the services provided.

Benefits of E-Commerce Benefits to organizations Makes national and international markets more accessible Lowering costs of processing, distributing, and retrieving information Benefits to customers Access a vast number of products and services around the clock (24/7/365)

Benefits of E-Commerce (continued) Benefits to Society Ability to easily and conveniently deliver information, services and products to people in cities, rural areas and developing countries.

Limitations of E-Commerce Technological Limitations Lack of universally accepted security standards Insufficient telecommunications bandwidth Expensive accessibility Non-technological Limitations Perception that EC is unsecure Unresolved legal issues Lacks a critical mass of sellers and buyers

Online Service Industries Cyberbanking involves conducting banking activities from home, a place of business, or on the road instead of at a physical bank location. Virtual banks are dedicated only to Internet transactions. Online securities trading Online job market Travel services Online advertising

Online Advertising Online Advertising methods Banners are simply electronic billboards. Pop-up ad appears in front of the current browser window. Pop-under ad appears underneath the active window. Permission marketing asks consumers to give their permission to voluntarily accept online advertising and e-mail. Viral marketing refers to online “word-of-mouth” marketing.

Issues in E-Tailing Channel conflict occurs when manufacturers disintermediate their channel partners, such as distributors, retailers, dealers, and sales representatives, by selling their products directly to consumers, usually over the Internet through electronic commerce Order fulfillment involves finding the product to be shipped; packaging the product; arrange for speedy delivery to the customer; and handle the return of unwanted or defective products.

Electronic Exchanges Vertical Exchanges Horizontal Exchanges Functional Exchanges

Frederic Lucano/Stone/Getty Images, Inc. Electronic Payments Electronic checks (e-checks) Electronic credit cards Purchasing cards Electronic cash Stored-value money cards Smart cards Person-to-person payments Frederic Lucano/Stone/Getty Images, Inc.

Ethical and Legal Issues Ethical Issues Privacy Job Loss

Legal Issues Specific to E-Commerce Fraud on the Internet Domain Names Cybersquatting

Legal Issues Specific to E-Commerce (continued) Domain Tasting Taxes and Other Fees Copyright