Mis 111 computers and the inter networked society
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MIS 111: Computers and the Inter-networked Society. Class 4: E-Commerce July 14 th , 2011. Today’s Learning Objectives . List one or two current events in technology news Define e-commerce List at least 4 different ways e-commerce can make money

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MIS 111: Computers and the Inter-networked Society

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Mis 111 computers and the inter networked society

MIS 111: Computers and the Inter-networked Society

Class 4: E-Commerce

July 14th, 2011

Today s learning objectives

Today’s Learning Objectives

  • List one or two current events in technology news

  • Define e-commerce

  • List at least 4 different ways e-commerce can make money

  • Explain the difference between Business-to-Customer and Business-to-Business e-commerce

  • List the components of an online store

  • Discuss how the “long tail” is implemented in e-commerce and why it makes e-commerce successful

  • Discuss a few ways you can make money online



When was the last time you used a physical store to buy…





E commerce an example

E-Commerce: An Example

E commerce a definition

E-Commerce: A Definition

“The process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the Internet.”

Pure vs partial e commerce

Pure vs. Partial E-Commerce

  • Bricks and mortar (not e-commerce)

  • Virtual (pure e-commerce)

  • Clicks and mortar (partial e-commerce)

A word on nomenclature

A Word on Nomenclature

  • Business and technology people are fairly simple people.

  • Hence, the names they choose mean exactly what they say (for example, management information systems? The world wide web?)

Types of e commerce

Types of E-Commerce

  • Business-to-Consumer

  • Business-to-Business

  • Consumer-to-Consumer

  • Business-to-Employee

  • E-Government

  • Mobile Commerce

Business to consumer and business to business

Business-to-Consumerand Business-to-Business

More details

Business to consumer ec b2c

Business-to-Consumer EC (B2C)

  • Means of Access (E-Tailing)

    • Direct sale through Electronic Storefronts

      • Like www.officedepot.com

    • Direct sale through Electronic Malls

      • May include thousands of vendors

  • Benefits of E-Tailing:

    • Can buy from home 24/7

    • Wider variety of products at lower prices (text books?)

Business to consumer services

Business-to-Consumer Services

  • Online Service Industries (in addition to goods)

    • Cyberbanking (paying bills, applying for loans)

    • Online Securities Trading (E*Trade)

    • Online Job Market (www.monster.com)

    • Travel Services (www.hotels.com)

Business to consumer ads

Business-to-Consumer Ads

  • Online Advertising Methods

    • Banners (electronic billboards)

    • Pop-ups/Pop-unders (annoying!!)

    • Spamming vs. Permission Marketing

      • (Will you please sign up for our newsletter?)

    • Viral Marketing

      • “Word of Mouth” marketing

  • Addwords (not as good as search engine optimization)

Business to business b2b

Business-to-Business (B2B)

  • Sell-Side Marketplaces

    • Organizations sell products to others

  • Buy-Side Marketplaces

    • Organizations buy products from others

  • Electronic Exchanges

    • One buyer, many sellers

Some e commerce business models

Some E-Commerce Business Models

  • Online direct marketing

    • Manufacturers/Retailers sell directly to customers

  • Deep discounters

    • Appeals to customers who consider only price

  • Viral marketing

    • Receivers send info about product to friends

  • Group purchasing

    • Small buyers aggregate demand to get low price

  • Online auctions

    • Like regular auction, but online

How do they make money

How do they make money?

Amazon com


Pandora com


Ebay com




Http www barnesandnoble com






Mis 111 computers and the inter networked society


Mis 111 computers and the inter networked society


Ncn com


Go disney com


Www arizona edu


Woot com


Where to start

Where to start?

  • Q1. how are you going to make money

    • Adverting

    • Selling a product

    • Selling a service

    • Selling digital media

    • Affiliate program

    • Selling sort of you own program

    • Subscriptions

    • Hybrid


  • Example i m going to be selling a digital product

    Example, I’m going to be selling a digital product

    • Tomorrow, we will do an affiliate program so today we are going to be selling videos and music

    • Q2. how much work am I willing to put into Web development?

    Option 1

    Option 1

    • Online solutions

      • http://shopping-cart-review.toptenreviews.com/

      • https://www.bigcommerce.com/ecommerce-solution-features.php

    Online stores components processes

    Online Stores:Components & Processes

    • Catalogue

    • List of Products

    • Descriptions

    • Prices

    • Options, size, etc.

    • Pictures









    • Shopping Cart

    • A temporary list of item to be purchased



    • Checkout

    • Billing Info

    • Shipping Address

    • Shipping Cost

    • Record Order

    • Process Payment





    e-commerce - Michael McDonnell

    Electronic payments

    Electronic Payments

    • Electronic Checks

    • Electronic Credit Cards

    • Purchasing Cards

    • Do you know what that little lock means in the upper right hand corner of the browser?

    Electronic payments cont d

    Electronic Payments (cont’d)

    • Electronic Cash

      • Stored-Value Money Cards (calling cards)

      • Smart Cards (like the CatCard)

      • Person-to-Person Payments (PayPal)

      • Digital Wallets (stores financial info of buyer so no reentry is needed)

    Option 2

    Option 2

    • Content Management System

      • Blog

      • Google sites

      • Word press

      • Joomla

      • Drupal

    • Plugins

      • http://extensions.joomla.org/

    Option 3

    Option 3

    • Completely program it

    • Why?

      • Complete flexibility

      • Your platform doesn’t support content management systems

        • http://govollow.appspot.com/

        • Free and lots of traffic (great for facebook, iphone integration)

      • You’re a geek 

    With option 2 and 3

    With option 2 and 3

    • You usually need to find you own place to host the Web site (they are just software)

      • Install software

      • Create a database

    The long tail

    The Long Tail

    The long tail1

    “The Long Tail”

    • What happened to Touching the Void?

    • What does it mean that we have a “market of hits?” (anyone listen to the Top 40 station?)

    • Why aren’t obscure products in the market?

    • What is the 20/80 principle and why doesn’t it apply to the market for music and videos?

    The long tail power law distribution

    The Long Tail: Power Law Distribution

    The rules of the long tail

    The Rules of The Long Tail

    • Rule 1: Make Everything Available

      • Why can sellers sell everything online?

    • Rule 2: Cut the Price in Half; Now Lower it.

      • Is any price too low?

    • Rule 3: Help Me Find it.

      • How do recommendations work?

    You a money maker

    You: A Money Maker

    • Affiliate Programs (http://www.amazon.com/)

    • Advertising (www.google.com/adsense/)

    • Create Products (http://www.spreadshirt.com/)

    • I want to sell my own product …

      • Don’t want to handle order fulfillment

      • http://www.amazonservices.com/content/fulfillment-by-amazon.htm?id=hm2



    • No reading

    • Meet in McClelland Hall 214

    • We’re going to make a business!!!

    Mis 111 computers and the inter networked society


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