2 Table of Contents E-Commerce overview 1.1 Definition of e-commerce 1.2 Brief history of e-commerceE-Commerce categories2.1 Two major categories2.2 Other categoriesBenefits of e-commerce3.1 Benefits to organizations3.2 Benefits to consumersBusiness applicationsOnline shoppingInteresting facts and figuresSummary and ConclusionReferences
3 E-Commerce Overview Definition of E-Commerce Brief History of E-Commerce1
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 cardsAutomated teller machines (ATM)Telephone bankingAirline reservation system2
8 Brief History of E-Commerce (cont).. The Internet commercialized and users flocked to participate in the form of dot-coms, or Internet start-upsInnovative 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 categoriesOther categories3
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-learningE-government4
13 Benefits of E-Commerce Benefits to organizationsBenefits to consumers5
14 Benefits to organizations Global reachCost reductionSupply chain improvementsExtended hours: 24/7/365CustomizationImproved customer relations
15 Benefits to consumers More products and services Cheaper products and servicesInstant deliveryInformation availabilityParticipation in auctions
16 Business applications Instant messagingOnline shopping and order trackingOnline bankingShopping cart softwareTeleconferencingElectronic tickets
17 Online ShoppingOnline shopping is the process of buying goods and services from merchants who sell on the InternetOnline consumers are evenly split between men and women and tend to be better educated, younger, and more affluent than the general population
19 Online Shopping (cont).. Favourite websites for shopping include those featuring:Event ticketsOnline periodicals subscriptionFlowers and giftsConsumer electronicsTravel
20 Online Shopping (cont).. 7How do you buy something
21 Interesting Facts and Statistics 8Every 1.2 seconds, a Canadian makes a purchase with their PayPal accountAlmost 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 MarketsElectronic Data InterchangeInternet Commerce
24 Electronic marketsThe 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 marketsThere 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 commerceInformation 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 commerceIt 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 cycleConducting a commercial transaction involves the following steps:Pre-Sale:Search - finding a supplierNegotiate – agreeing the terms of tradeExecution:OrderDeliverySettlement:InvoicePaymentAfter-sales, e.g. warrantee and service