1. MIS 565 – What is Ecommerce
Instructor: Ali Hashmi

2. Use of Internet and Web to transact business More formally:
What is E-commerce?
Use of Internet and Web to transact business
More formally:
Digitally enabled commercial transactions between and among organizations and individuals (B2C and B2B)

3. E-commerce vs. E-business
A broader definition of Electronic Commerce that includes not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, and conducting electronic transactions within an organization

4. Difference between ecommerce and ebusiness

5. Evolution of Web

6. Unique Features of E-commerce Technology
Is ubiquitous (available everywhere, all the time)
Offers global reach (across cultural/national boundaries)
Operates according to universal standards (lowers market entry for merchants and search costs for consumers)
Provides information richness (more powerful selling environment)
Is interactive (can simulate face-to-face experience, but on global scale)
Increases information density (amount and quality of information available to all market participants)
Permits personalization/customization
Social technology

7. Revenue Model
Describes how the firm will earn revenue, generate profits, and produce a superior return on invested capital
Major types:
Advertising revenue model e.g. Banner Ads, pay per click
Subscription revenue model e.g. hosting services, ASPs, etc
Transaction fee revenue model e.g. paypal, expedia, etrade, etc
Sales revenue model e.g. amazon, ebay, etc
Slide 2-7

8. Classified by market relationship
Types of E-commerce
Classified by market relationship
Business-to-Consumer (B2C)
Business-to-Business (B2B)
Consumer-to-Consumer (C2C)
Classified by technology used
Peer-to-Peer (P2P)
Mobile commerce (M-commerce)

9. B2C
Involves online businesses attempting to reach individual consumers
Many types of business models within this category including online retailers, content providers, portals, transaction brokers, service providers, market creators and community providers
E.g. BarnesandNoble.com, 1800Flowers.com, Godiva.com, REI.com

10. The Growth of B2C E-commerce
SOURCES: eMarketer, Inc., 2009a; U.S. Census Bureau, 2009b; authors’ estimates.

11. B2B Involves businesses focusing on selling to other businesses
Two primary business models within B2B:
Net marketplaces (includes e-distributors, e-procurement companies, exchanges and industry consortia)
Private industrial networks (includes single firm networks and industry-wide networks)
E.g.Direct marketing company(mail chimp), online CRM application (salesforce.com), grainger.com, techdata.com, alibaba.com, etc

12. The Growth of B2B E-commerce Figure 1.5, Page 28
SOURCES: U.S. Census Bureau, 2009a; authors’ estimates.

13. C2C
Provides a way for consumers to sell to each other, with the help of an online market maker
eBay, half.com, craigslist, etc

14. P2P
Uses peer-to-peer technology, which enables Internet users to share files and computer resources without having to go through a central Web server
E.g: Torrents, limewire, etc

15. M-commerce
Use of wireless digital devices such as cell phones and handheld devices to enable transactions on the Web
E.g Mobile banking, Mobile ticketing, etc