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E-commerce Chapter 9 pp 284-311. E-Commerce Buyer 1. Search & Identification 3. Purchasing 2. Selection & Negotiation 4. Product & Service Delivery 5.

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Presentation on theme: "E-commerce Chapter 9 pp 284-311. E-Commerce Buyer 1. Search & Identification 3. Purchasing 2. Selection & Negotiation 4. Product & Service Delivery 5."— Presentation transcript:

1 E-commerce Chapter 9 pp 284-311

2 E-Commerce Buyer 1. Search & Identification 3. Purchasing 2. Selection & Negotiation 4. Product & Service Delivery 5. After-sales Service Traditional Delivery Electronic Delivery

3 1. Searching for Products E-Commerce has revolutionized the way people shop for products.

4 2. Negotiating a Price Revolutionizing the way product pricing is determined Reverse Auctions Dutch Auctions

5 3. Purchasing a Product Revolutionizing how purchases are processed Completely paperless transaction Instantaneous transfer of funds Real-time reporting

6 4. Product & Service Delivery no distribution centers. no fleet of trucks no warehouses no inventory Buyer Internet Thomson Publishing UPS $49 $10 $30 $9 Book

7 5. After-purchase “Service” Customers can track package delivery online. Orders can be cancel or modified on the fly. Integration: Help desk will know exactly what computer you purchased. Online retailers can track your purchase history and can “help” you search for future products.

8 Amazing E-Commerce Stories Reuter’s earns over $1 billion in revenue annually and all they sell is “information” online. Reuter’s has helped me purchase successful gifts for my wife. As we speak, online purchases are directly controlling assembly line production for companies like Lockheed Martin.

9 Evolution of Web Design In the past, Web Design involved Learning HTML, creating web pages, etc. Today, Web Design involves Web Programming and Application Integration Business Modeling and Re-Engineering On-line Marketing and Advertising Strategy Graphic Design and Digital Media

10 Career Evolution In the past, there was a great separation between business and technology

11 Career Evolution In the past, there was a great separation Only the large companies developed custom information systems. Software developers were isolated from the underlying business processes Business persons were isolated from the underlying technology.

12 Career Evolution Because of e-commerce even small companies develop custom information systems Thus, there is a greater need for Marketers, Managers, Accountants, and Financial Analysts who have a strong understand of web technologies. Computer Scientist, Programmers, and Web Developers who have a strong understanding of business practices and processes.

13 E-commerce scope There are many aspects to buying and selling and e-commerce impacts all the processes

14 Categories B2B E-commerce was going on long before B2C (like, etc.) E-commerce has enabled new forms of C2C (E-bay, Craig’s List, etc.)

15 Categories Business-to-Consumer (B2C) –,, JCPenney’s Business-to-Business (B2B) – Cisco – Selling network routers online Consumer-to-Consumer (C2C) – Ebay

16 Essential e-Commerce Processes

17 Access Control and Security E-commerce processes must establish mutual trust and secure transactions by authenticating users, authorizing access, and enforcing security features

18 Profiling and Personalizing Processes that gather data on you and your website behavior and choices build electronic profiles of your characteristics and preferences. product recommendations personalized Web advertising

19 Search Management Efficient and effective search processes provide a top e-commerce website capability that helps customers find the specific product or service they want to evaluate or buy

20 Content and Catalog Management Content Management – software that helps e- commerce companies develop, generate, deliver, update, and archive text data and multimedia information at e-commerce websites Catalog Management – software that helps generate and manage catalog content

21 Workflow Management Software that helps employees electronically collaborate to accomplish structured work tasks within knowledge-based business processes

22 Event Notification Software that notifies customers, suppliers, employees, and other stakeholders of their status in a transaction based on events initiated by one of the parties

23 Collaboration and Trading Processes that support the collaboration and trading services needed by customers, suppliers, and other stakeholders

24 Electronic Payment Processes Web Payment – credit card payment processes on the web Electronic Funds Transfer (EFT) –money and credit transfers between banks and businesses and their customers Secure Electronic Payments – encrypting data passing between customer and merchant encrypting data passing between customer and company authorizing the credit card transaction, taking sensitive information off-line

25 e-Commerce Trends

26 Business-to-Business e- Commerce B2B e-commerce is the wholesale and supply side of the commercial process, where businesses buy, sell, or trade with other businesses. B2B e-Commerce Portals

27 e-Commerce Portals Definition: Websites developed and hosted by third-party market-maker companies who serve as infomediaries that bring buyers and sellers together in catalog, exchange, and auction markets.

28 Infomediaries Definition: Companies that serve as intermediaries in e- business and e-commerce transactions Provide software products and services to power business Web portals for e-commerce transactions PayPal (B2C) VeriSign (B2B)

29 From Bricks to Clicks: Different strategies for spinning-off an e-commerce company.

30 Summary Electronic commerce encompasses the entire online process of developing, marketing, selling, delivering, servicing, and paying for products and services. The basic categories of e-commerce include B2C, B2B and C2C.

31 Summary Many companies (even small ones) are moving toward offering full service B2C and B2B e-commerce portals supported by integrated customer-focused processes and internetworked supply chains.

32 Summary E-commerce websites attractive Web pages, multimedia catalogs, interactive order processing, secure electronic payment systems, and online customer support.

33 Summary Business-to-business applications of e- commerce involve electronic catalog, exchange, and auction marketplaces that use Internet, intranet, and extranet websites and portals to unite buyers and sellers.

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