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E-Commerce: A Revolution in the Way We Do Business There is no finish line… Nike Corporate Motto Financial business transaction that occurs over an electronic network Sometimes called e-business What is electronic commerce (e-commerce) ? How are e-commerce transactions conducted?

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Presentation Transcript
There is no finish line…
  • Nike Corporate Motto
Financial business transaction that occurs over an electronic network

Sometimes callede-business

What is electronic commerce (e-commerce)?

How are e-commerce transactions conducted?

Primarily through desktop computers

Wirelessly using handheld Web-enabled devices


E-commerce that takes place using mobile devices

What is a bricks-and-mortar business?

Company with a physical location, such as Wal-Mart or Kmart

What is a clicks-and-mortar business?

Company with a bricks-and-mortar location as well as an online presence

Some companies have onlinepresence without physical locations

E*Trade andAmazon.com

What is an electronic storefront?

Web site where e-retailer displays its products

Shopping cart allows customer to collect purchases

Also called online catalog

add to cart

What is a shopping bot?

Web site that searches for the best price on a specific product

Also called a shopbot

What is business-to-consumer (B-to-C or B2C) e-commerce?

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

What is consumer-to-consumer (C-to-C or C2C) e-commerce?

Individuals using Internet to sell products to other individuals

Online auction, such as eBay

What is business-to-business (B-to-B or B2B) e-commerce?

Sale and exchange of products and service between businesses

Many businesses engage in both B2B and B2C

Supply chain creates and distributes products

What is business-to-employee (B-to-E or B2E) e-commerce?

Sale and exchange of products and service between a business and its employees

Usually through an intranet

What are some advantages of e-commerce?

Global market 24/7

Businesses have access to 459 million people with Internet access

Lower operating costs

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

revenue streams
Revenue Streams
  • Sales
  • Subscriptions
  • Banner ads
  • Pop ups
  • Web searches
    • Paid listings
    • Paid inclusion
    • Search engine optimization


building traffic
Building Traffic
  • The 3Cs Approach
    • Content, community, and commerce
  • Keywords and Search Engines
    • Choose name and product names that best describe business purpose and features
    • Select descriptive domain names
    • Business-related keywords can be listed in the HTML meta tag
building traffic continued
Building Traffic (continued)
  • Marketing
    • Online advertising methods include banner ads, pop-up ads, and e-mail
    • Offline advertising methods include magazines, newspapers, radio, and television
electronic payment systems
Electronic Payment Systems
  • Electronic cash (e-cash or digital cash)
    • Provides a private and secure method of transferring funds
    • PayPal
      • Best-known e-cash provider
  • E-cash benefits
    • Privacy - hides account information from vendors
    • Convenient if seller cannot process a credit card
  • Smartcards
    • Credit cards with embedded microchips
ecommerce spending trends
Ecommerce Spending Trends
  • At the end of 2008, worldwide e-commerce is expected to exceed $470 brillion.
  • By 2010:
    • 71% of US consumers will use the Internet to shop
    • 50% of ALL retail sales will be influenced by the Internet
consumer concerns
Consumer Concerns
  • A recent poll of Americans Found that
    • 13% had no fears about E-Commerce
    • 53% had concerns of privacy and security
    • 20% cited the inability to inspect products closely over the Internet
    • 3% do not like to wait for delivery
  • Bandwidth or data capacity
  • Comfort Factor
  • Security
  • Privacy
What factors lead to customer loyalty?

Best storefronts are efficient and easy to use

Customers who must wait more than eight seconds for a page to download usually will click to another site

fun thought
People are more violently opposed to fur than leather because it's safer to harass rich women than motorcycle gangs. Fun thought…