Chapter 11. Electronic Commerce. Overview. An Overview of Electronic Commerce Online Shopping Online Services Peer-to-Peer Online Transactions Transaction Payment Methods Establishing an E-tailer Web Site Business-to-Business Electronic Commerce The Supply Chain: A B2B Model
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Electronic commerce – buying and selling of products and services over the Internet
Business-to-consumer electronic commerce – companies use Internet to sell products and services to customers and receive payment
Business-to-business electronic commerce – companies use Internet to conduct a wide range of business activities with other companiesAn Overview of Electronic Commerce
Convenience – consumers purchase what they want when they want from their own homes
Greater selection – online stores offer consumers almost unlimited products
Product information – consumers find detailed information on a wide variety of products
Ease of comparison shopping – consumers quickly find comparable items at similar storesOnline Shopping
Online banking involves using a computer, modem, and Internet to conduct routine banking.
Users pay bills, transfer funds among accounts, and transact other financial business online.
Brokerage firms maintain Web sites so consumers can purchase and sell stocks and other securities.Online Services
Online auction is a site to place an item for sale or bid on items being offered for auction.
Digital music distribution is the free distribution of music over the Internet.Peer-to-Peer Online Transactions
represents a customer’s promise to pay for online purchases upon receipt of a periodic statement
Credit Cards and Debit Cards
Credit card – small plastic card with information that enables user to make purchases on credit
Debit card – withdraws funds directly from purchaser’s current checking or savings accountTransaction Payment Methods
user swipes card through reader attached to computer and information is transmitted to e-tailer which completes payment transaction
allows customer to pay for online purchases by transmitting a number from one computer to another; the number represents a specified amount of moneyTransaction Payment Methods
Site analysis is ongoing evaluation of an e-commerce Web site and its activity.
One form involves timing a Web site’s ordering or processing activities.
Another form provides users with a simple online questionnaire that allows feedback.Establishing an E-tailer Web Site
B2B e-commerce networks companies, suppliers, agents, customers, and others in a supply chain.
Procurement is finding products and services at the best possible prices.
Communicating with others in the supply chain can be done through Web sites, intranets, internets, extranets, and virtual private networks.Business-to-Business Electronic Commerce
Financial electronic data interchange (FEDI) provides for electronic transmission of payment and remittance information among a payer, payee, and banks.
Automated clearinghouse (ACH) is established to transfer funds electronically from one account to another.Major Types of B2B Technologies
Authentication identifies and individual and confirms authorization to access a system.
Electronic signature is a digital code attached to a message to uniquely identify the sender.
Trusted operating system isolates OS functions into separate compartments and restricts access of unauthorized users to key areas of systems.Major Types of B2B Technologies
Computers electronically transmit purchase orders, shipping lists, invoices, and payments; eliminates delays in shipping, obtains accurate pricing, and better serves customers.
Electronic funds transfers allows payments to be electronically credited to suppliers’ bank accounts.B2B in the U.S. Economy
Employees use personal computers to enter information from customers who request package pick up or trace.
Drivers use handheld devices to scan bar codes for product and destination information.
Shipping label information can track packages and inform customers of package status.B2B in the U.S. Economy
Based on the information presented in this chapter and your own experience, what do you think is on the horizon?