1. E-Commerce

2. What is E-Commerce Industry Canada version Commercial activity conducted over networks linking electronic devices (usually computers.) Simple version Conducting business over the Internet and WWW

3. 3 Features of E-Commerce 1. An exchange of goods or services of some value 2. An exchange of payment for those goods and services 3. Transactions are conducted through digital technology (on the Internet in most cases)

4. Types of E-Commerce B2C – Business to Consumer B2B – Business to Business C2C – Consumer to Consumer P2P – Person to Person M-Commerce

5. B2B – Business to Business Transactions between businesses Usually purchasing / procurement More common in larger businesses Examples: Purchasing office supplies and equipment IT hardware and software purchase Purchase of production materials Purchasing consulting services

6. C2C – Consumer to Consumer Individuals can sell items to each other using an intermediary Individuals are responsible for: Placing the ad Shipping goods Intermediary is responsible for: Maintaining the website and search engine Processing payments Examples: e-Bay, Amazon Marketplace

7. P2P – Person to Person Allows users to share files and resources directly No web server needed for transaction Challenging for companies to make money using this model Examples: Napster.com, Pirate Bay

8. M-Commerce Conducted using mobile devices (PDA’s, cell phones, etc.) Devices connect to wireless networks A growing market as wireless devices become more widespread Examples: online banking, buying movie tickets, downloading music

9. B2C – Business to Consumer Businesses sell goods or services to individuals This type of e-commerce has been growing rapidly There are several common business models for this type of business…

10. Generating Revenue Some common methods: Sales (Amazon, Travelocity, etc.) Advertising (Yahoo, Google, etc.) Subscriptions (offer content for a fee) Transaction Fees (charge commission, E- Bay, etc.)

11. B2C Business Models Portal Offer many services such as searching, news, e- mail, chat, downloads, calendar, etc. Goal is to be the first site users go to Make money from advertising and payments for premium services E-tailers Websites where consumers can buy goods traditionally sold in stores Some retail stores have both “brick and mortar” locations as well as an online store

12. B2C Business Models Content providers Provide information and/or entertainment that users are willing to pay for Transaction Brokers Process transactions that would normally be done in person E.g. Online stock trading, travel agents, job placement services Charge a fee for transactions Community Providers Provide places where people can interact with each other Revenue is often through advertising E.g. Facebook

13. B2C Business Models Market Creators Create an online marketplace for buyers and sellers to meet Provide a “safe” environment for transactions E.g. e-Bay, Priceline Service providers Provide services that people do not want to do, or don’t have time for E.g. Online grocery shopping, online florist