Exploring E-Commerce Mohammed Arif Mazumder Sr. Lecturer Daffodil International University

e-Commerce and e-Business Electronic commerce (EC, or e- commerce) describes the process of buying, selling, transferring, or exchanging of products, services, and/or information via computer networks, including the Internet. E-business refers to a broader definition of EC, not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, conducting e-learning, and conducting electronic transactions within an organization.

Snap of e-Commerce Commerce E (Electronic) - Commerce Traditional Commerce Internet Commerce Mobile Commerce Business Focused E-Commerce Consumer focused E-Commerce

e-Commerce Consists of Electronic retailing (e-tailing) EDI (Electronic Data interchange) EFT (electronic Funds Transfer)

e-Commerce Consists of …. Electronic retailing (e-tailing) ▫E-Retailing refers to retailing over the internet. Thus an e- Retailing is a B2C (Business to customer) business model that executes a transaction between businessman and the final consumer. ▫E-Retailers can be pure play businesses like amazon.com or businesses that have evolved from a legacy business such as tesco.com. E-Retailing refers to retailing over the internet. ▫E-tailing revenue can come from the sale of products and services, through subscriptions to website content, or through advertising. ▫The e-retailing is a subset of e-commerce.

e-Commerce Consists of …. EDI (Electronic Data interchange) Electronic Data Interchange (EDI) is the computer-to-computer exchange of business documents in a standard electronic format between business partners. A typical manual process looks like this, with lots of paper and people involvement: The EDI process looks like this – no paper, no people involved: Business documents –The most common documents exchanged via EDI are purchase orders, invoices and Advance Ship Notices. But there are many, many others such as bill of lading, customs documents, inventory documents, Shipping Status docs.

e-Commerce Consists of …. EFT (electronic Funds Transfer) Electronic Funds Transfer (EFT) is a system of transferring money from one bank account directly to another without any paper money changing hands. EFT refers to any transfer of funds initiated through an electronic terminal, including credit card, ATM, and point-of-sale (POS) transactions. The growing popularity of EFT for online bill payment is paving the way for a paperless universe where checks, stamps, envelopes, and paper bills are obsolete. The benefits of EFT include reduced administrative costs, increased efficiency, simplified bookkeeping, and greater security.

Types of e-Commerce Four Major Domain on which E-Commerce Works Business (Organization) Customer (Individual) Business (Organization) B2B (Brokering Sites) B2C (e.g. Amazon) Customer (Individual) C2B (e.g. Priceline) C2C (e.g. eBay)

Other Types of e-Commerce Government-to-Consumer(G-to-C) site: website is an attempt by the government to reach out to people in general. Business-to-Government(B-to-G) site: website is a variation of the B-to-B web site. This web site used by the government to exchange information with various business houses across the world.

Advantages of E-Commerce Able to conduct business 24 x 7 x 365 Access the global marketplace Speed Opportunity to reduce cost Platform independent Customer self service Large purchase per transaction People can shop in different ways Large catalogs Improved customer relation

Disadvantages of E-Commerce Time for delivery of physical products Limited and selected sensory information Returning goods Privacy, security, payment, identity Personal service

Disadvantages of E-Commerce Time for delivery of physical products Limited and selected sensory information Returning goods Privacy, security, payment, identity Personal service

M-Commerce M-commerce is the buying and selling of goods and services through wireless handheld devices. M-Commerce is the process of paying for services using a mobile phone or personal organizer. M-Commerce Services and Applications available: Mobile ticketing Content purchase and delivery Mobile banking Auctions Mobile Purchase Mobile marketing and advertising

Future of E-Commerce While E-Commerce may not completely replace other forms of Commerce, it is likely to be the dominant mode of the commercial transactions in the future. E-commerce prices will cover the real costs of doing business on the Web and pay investors a reasonable rate of return on their capital. HOW?