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E-Commerce. What is E-commerce?. Electronic commerce (e-commerce) A business transaction that occurs over a computer network. Sometimes called e-business. E-commerce Basics. Bricks-and-Mortars Business A company or business with a physical location. Clicks-and-Mortars Business

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What is e commerce
What is E-commerce?

  • Electronic commerce (e-commerce)

    • A business transaction that occurs over a computer network.

    • Sometimes called e-business.

E commerce basics
E-commerce Basics

  • Bricks-and-Mortars Business

    • A company or business with a physical location.

  • Clicks-and-Mortars Business

    • A company or business with a physical location and an online presence.

  • Online Presence Only Business

    • A company or business that exists online only without a physical location.

    • Theoretically lower cost.

    • Examples: Amazon.com, E-Trade, and eBay

E commerce1

  • Business-to-Consumer (B2C)

    • Sale of products or services from a business to the general public.

E commerce2

  • Consumer-to-Consumer (C2C)

    • Individuals using the Internet to sell products to other individuals.

    • Online auction,

      such as eBay

E commerce3

  • Business-to-Business (B2B)

    • Sale and exchange of products and services between businesses.

    • Many businesses engage in both B2B and B2C.

Advantages of e commerce
Advantages of E-commerce

  • Global market 24/7

  • Businesses have access to 500 million people with Internet access

  • Customers can conduct price comparisons easily

  • Feedback can be immediate

  • Changing information can be available quickly

  • FAQ (frequently asked questions) pages can provide easy access to customer support

  • Ability to gather customer information, analyze it, and react

  • New and traditional approaches to generating revenue

  • Manufacturers can buy and sell directly, avoiding the cost of the middleman

  • Distribution costs for information reduced or eliminated

  • Options to create a paperless environment

What is an electronic storefront
What is an electronic storefront?

  • A Web site where an

    e-retailer displays its


  • A shopping cart allows

    a customer to collect

    and purchase products.

  • Also called an

    online catalog.

Making money
Making Money

  • There are many different ways

    to generate money online.

    • Sale of products and/or services

    • Subscriptions

    • Advertising

      • Banners

      • Pop-ups

    • Web Searches

      • Paid listings

      • Paid inclusion

Electronic payment systems
Electronic Payment Systems

  • Electronic Cash (e-cash or digital cash)

    • Provides a private and secure method of transferring funds.

      • Privacy is maintained because it hides account information from the vendor.

      • Convenient alternative to credit cards.

    • Electronic wallets (e-wallets) is software that stores billing and shipping information.

      • Can transfer billing and shipping information to participating Web sites at checkout time.

      • Examples: Microsoft’s Passport & eWalletXpress

    • PayPal

      • Best known e-cash provider

E commerce limitations
E-commerce Limitations

  • Privacy

  • Security

  • Comfort Factor

  • Technology Driven

    • Cannot reach users that do not have access to computers and Internet.

E commerce security
E-commerce Security

  • Digital Certificates

    • A type of electronic business card that is attached to Internet transaction data.

    • Verifies the sender of the data and Web site.

    • Provided by Certificate Authorities

      • VeriSign & eTrust

  • Encryption

    • Uses high-level mathematical functions and computer algorithms to encode data and make it unreadable to snoopers.

    • Secure Sockets Layer (SSL) is a secure link between you and the Web server that ensures all data transmitted is encrypted.

      • URLs that begin with https:// are using SSL.

E commerce security1
E-commerce Security

  • Secure Sockets Layer (SSL)

    • Security protocol that encrypts all communications sent between your computer and the Web server.

E commerce security2
E-commerce Security

  • Secure HTTP (S-HTTP)

    • An alternative to the popularly used security protocol SSL.

    • Not the same as HTTPS.

Fun thought
Fun Thought…

People are more violently opposed to fur than

leather because it’s safer to harass rich women

than motorcycle gangs.