1. Copyright © 2010 Certification Partners, LLC -- All Rights Reserved E-Commerce Specialist

2. Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Lesson 1: Electronic Commerce Foundations

3. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Lesson 1 Objectives Identify specific B2B and B2C issues in developing an e-commerce site Compare the advantages and disadvantages of e-commerce and traditional sales methods Identify business growth drivers and barriers Distinguish between in-house and online instant storefront options for creating an e- commerce site

4. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Lesson 1 Objectives (cont’d) Evaluate the advantages and disadvantages of using third-party instant storefronts Evaluate the advantages and disadvantages of using e-commerce storefront software Choose an appropriate payment method

5. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Introduction to Web Commerce Example e-commerce sites –Travelocity.com (www.travelocity.com) –Dell Inc. (www.dell.com) –Barnes & Noble (www.barnesandnoble.com) –Habitat for Humanity Gift Shop (www.habitatgiftshop.com)

6. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Impetus for Web Commerce The Internet has more than: –812 million Internet users –66.3 million registered domain names –300 million hosts Many Web users are: –Increasingly global –Young –Well-educated –Upscale

7. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Electronic Commerce Defined Capabilities that contribute to e-commerce: –Communication transport –Data management –Security

8. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Types of Electronic Commerce Business-to-business (B2B) Business-to-consumer (B2C)

9. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Microcommerce and Macrocommerce Microcommerce –Purchases between $0.01 and $5 –Generally soft goods Macrocommerce –Purchases over $5 –Generally hard goods

10. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Benefits of Electronic Commerce Instant worldwide availability Streamlined buyer- to-seller relationship Reduced paperwork Reduced errors Reduced time Easier entry into new markets New business opportunities Improved market analysis Wider access to assistance and advice Improved product analysis Ability to streamline and automate purchasing

11. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Drawbacks of Electronic Commerce Intellectual property issues Confidentiality issues Taxation issues Customs and interstate boundaries Regulations Credit card fraud Security issues Trust issues Round-the-clock availability issues

12. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved E-Commerce Solutions In-house solution Instant storefront –Online instant storefront –Offline/hybrid storefront

13. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Web Storefront Hardware and Software Hardware –Internet connection –Web servers –Web clients for development and content management Software –Web server software –Operating system –SSL certificates –Payment infrastructure –Database (DBMS) –Web page development software

14. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Ingredients of a Web Storefront Seven essential ingredients for success: –Generating demand –Accepting orders –Fulfilling orders –Processing payments –Providing service and support –Ensuring security –Ensuring community

15. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Generating Orders When developing the ordering infrastructure, remember the following guidelines: –Be consistent –Eliminate redundant information –Make ordering easy –Accept many substitutes –Include a bailout mechanism

16. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Processing Payments Three models for electronic payment: –Cash model –Check model –Credit model

17. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Offering Service and Support Automatic callback Click-to-dial Chat Co-browsing

18. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved The Virtual Enterprise Temporary partnership –Independent companies –Individuals Parties generally share: –Costs –Skills –Knowledge Often built around a specific venture or goal Technologies that support a virtual enterprise include: –VPNs –Teleconferencing –Web servers –Application servers –Database servers –Telephony

19. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Site Implementation Phased approach 1.Information-only Web site 2.Limited transactions 3.Full transactions 4.Legacy system integration

20. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved E-Commerce Guidelines Know your customer and use the information you have Know whether you want to outsource or use in-house experts Evolve Be flexible Create a business framework Anticipate hurdles

21. E-Commerce Specialist Copyright © 2010 Certification Partners, LLC -- All Rights Reserved Lesson 1 Summary Identify specific B2B and B2C issues in developing an e- commerce site Compare the advantages and disadvantages of e- commerce and traditional sales methods Identify business growth drivers and barriers Distinguish between in-house and online instant storefront options for creating an e-commerce site Evaluate the advantages and disadvantages of using third-party instant storefronts Evaluate the advantages and disadvantages of using e-commerce storefront software Choose an appropriate payment method