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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.