Electronic Commerce Systems. Electronic Commerce (E-Commerce) Commerce refers to all the activities the purchase and sales of goods or services. – Marketing,

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Presentation transcript:

Electronic Commerce Systems

Electronic Commerce (E-Commerce) Commerce refers to all the activities the purchase and sales of goods or services. – Marketing, sales, payment, fulfillment, customer service Electronic commerce is doing commerce with the use of computers, networks and commerce-enabled software (more than just online shopping)

Brief History 1970s: Electronic Funds Transfer (EFT) – Used by the banking industry to exchange account information over secured networks Late 1970s and early 1980s: Electronic Data Interchange (EDI) for e-commerce within companies – Used by businesses to transmit data from one business to another

Brief History 1990s: the World Wide Web on the Internet provides easy to- use technology for information publishing and dissemination – Cheaper to do business – Enable diverse business activities

E-commerce Applications Supply chain management Video on demand Remote banking Procurement and purchasing Home shopping Auctions Online marketing and advertisement

The Main Elements of E-commerce Consumer shopping on the Web Transactions conducted between businesses on the web Transactions and business processes that support selling and purchasing activities on the Web – Supplier, inventory, distribution, payment management – Financial management, purchasing products and information

Advantages of Electronic Commerce Increased sales – Reach narrow market segments in geographically dispersed locations – Create virtual communities Decreased costs – Handling of sales inquiries – Providing price quotes – Determining product availability Being in the space

Disadvantages of Electronic Commerce Loss of ability to inspect products from remote locations Rapid developing pace of underlying technologies Difficult to calculate return on investment Cultural and legal impediments

The Process of E-commerce 1. Attract customers – Advertising, marketing 2. Interact with customers – Catalog, negotiation 3. Handle and manage orders – Order capture – Payment – Transaction – Fulfillment (physical good, service good, digital good) 4. React to customer inquiries – Customer service – Order tracking