Electronic Commerce

1. Electronic Commerce • commonly known as e-commerce • is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks.

2. Electronic commerce draws on technologies such as : • mobile commerce • electronic funds transfer • supply chain management  • Internet marketing  • online transaction processing  • electronic data interchange (EDI) • inventory management systems • automated data collection systems

3. E-commerce can be divided into: • E-tailing or "virtual storefronts" on websites with online catalogs, sometimes gathered into a "virtual mall" • The gathering and use of demographic data through Web contacts and social media • Electronic Data Interchange (EDI), the business-to-business exchange of data • E-mail and fax and their use as media for reaching prospective and established customers (for example, with newsletters) • Business-to-business buying and selling • The security of business transactions

4. DEVELOPMENT OF E-COMMERCE

5. 1979: Michael Aldrich demonstrates the first online shopping system. • 1982: Minitel was introduced nationwide in France by France Télécom and used for online ordering • 1984: Gateshead SIS/Tesco is first B2C online shopping and Mrs Snowball, 72, is the first online home shopper • 1984: In April 1984, CompuServe launches the Electronic Mall in the USA and Canada. It is the first comprehensive electronic commerce service.[5] • 1984: California becomes first US state to enact an Electronic Commerce Act defining basic consumer rights online

6. 1992: Book Stacks Unlimited in Cleveland opens a commercial sales website (www.books.com) selling books online with credit card processing • 1992: Terry Brownell launches a fully graphical, iconic navigated Bulletin board system online shopping using RoboBOARD/FX • 1993: Paget Press releases edition No. 3 of the first AppStore, The Electronic AppWrapper[ • 1995: The US National Science Foundation lifts its former strict prohibition of commercial enterprise on the Internet

7. 1995: Thursday 27 April 1995, the purchase of a book by Paul Stanfield, Product Manager for CompuServe UK, from W H Smith's shop within CompuServe's UK Shopping Centre is the UK's first national online shopping service secure transaction. The shopping service at launch featured W H Smith, Tesco, Virgin Megastores/Our Price, Great Universal Stores (GUS), Interflora,Dixons Retail, Past Times, PC World (retailer) and Innovations • 1995: Jeff Bezos launches Amazon.com and the first commercial-free 24-hour, internet-only radio stations, Radio HK and NetRadio start broadcasting. Dell and Cisco begin to aggressively use Internet for commercial transactions. eBay is founded by computer programmer Pierre Omidyar as AuctionWeb

8. 2002: eBay acquires PayPal for $1.5 billion. Niche retail companies Wayfair and NetShops are founded with the concept of selling products through several targeted domains, rather than a central portal. • 2012: US eCommerce and Online Retail sales projected to reach $226 billion, an increase of 12 percent over 2011. • 2012: US eCommerce and Online Retail holiday sales reach $33.8 billion, up 13 percent

9. Business Applications • Document automation in supply chain and logistics • Domestic and international Payment systems • Enterprise content management • Group buying • Automated online assistants • Instant messaging • Newsgroups • Online shopping and order tracking • Online banking • Online office suites • Shopping cart software • Teleconferencing • Electronic tickets • Social-Networking

10. MOBILE COMMERCE • In 1997, it means "the delivery of electronic commerce capabilities directly into the consumer’s hand, anywhere, via wireless technology." • "a retail outlet in your customer’s pocket."

11. According to BI Intelligence, in January 2013, 29% of mobile users have now made a purchase with their phones. • Walmart estimatedthat 40% of all visits to their internet shopping site in December 2012 was from a mobile device. Bank of America predicts$67.1 billion in purchases will be made from mobile devices by European and U.S. shoppers in 2015. Mobile retailers in UK alone are expected to increase revenues up to 31% in FY 2013-04.

12. DEVELOPMENT OF MOBILE COMMERCE

13. Mobile commerce services were first delivered in 1997, when the first two mobile-phone enabled Coca Cola vending machines were installed in the Helsinki area in Finland. The machines accepted payment via SMS text messages. The first mobile phone-based banking service was launched in 1997 by Merita Bank of Finland, also using SMS. • The m-Commerce(tm) server developed in late 1997 by Kevin Duffey at Logica won the 1998Financial Times award for "most innovative mobile product," in a solution implemented with De La Rue, Motorola and Logica. The Financial Times commended the solution for "turning mobile commerce into a reality."

14. In 1998, the first sales of digital content as downloads to mobile phones were made possible when the first commercial downloadable ringtones were launched in Finland by Radiolinja (now part ofElisaOyj). • Two major national commercial platforms for mobile commerce were launched in 1999: Smart Money (http://smart.com.ph/money/) in the Philippines, and NTT DoCoMo's i-Mode Internet service in Japan. i-Mode offered a revolutionary revenue-sharing plan where NTT DoCoMo kept 9 percent of the fee users paid for content, and returned 91 percent to the content owner.

15. Mobile-commerce-related services spread rapidly in early 2000. Norway launched mobile parking payments. Austria offered train ticketing via mobile device. Japan offered mobile purchases of airline tickets.

16. The first book to cover mobile commerce was TomiAhonen'sM-profits in 2002. • The first university short course to discuss mobile commerce was held at the University of Oxford in 2003, with TomiAhonen and Steve Jones lecturing. As of 2008, UCL Computer Science andPeter J. Bentley demonstrated the potential for medical applications on mobile devices. • In order to exploit the potential mobile commerce market, mobile phone manufacturers such as Nokia, Ericsson, Motorola, and Qualcomm are working with carriers such as AT&T Wireless and Sprint to develop WAP-enabled smartphones. Smartphones offer fax, e-mail, and phone capabilities.

17. Since the launch of the iPhone, mobile commerce has moved away from SMS systems and into actual applications. SMS has significant security vulnerabilities and congestion problems, even though it is widely available and accessible. In addition, improvements in the capabilities of modern mobile devices make it prudent to place more of the resource burden on the mobile device. • The Google Wallet Mobile App launched in September 2011 and the m-Commerce joint venture formed in June 2011 between Vodafone, O2, Orange and T-Mobile are recent developments of note. Reflecting the importance of m-Commerce, in April 2012 the Competition Commissioner of the European Commission ordered an in-depth investigation of the m-Commerce joint venturebetween Vodafone, O2, Orange and T-Mobile. A recent survey states that 2012, 41% of smartphone customers have purchased retail products with their mobile devices

18. Products and Services

19. Mobile Money Transfer In Kenya money transfer is mainly done through the use of mobile phones. This was an initiative of a multimillion shillings company in Kenya. Mobile money transfer services in Kenya are now provided an (ZAP). the oldest has and is now generally used to refer to mobile money transfer services even by other companies other than.

20. Mobile ATM With the introduction of mobile money services for the unbanked, operators are now looking for efficient ways to roll out and manage distribution networks that can support cash-in and cash-out. Unlike traditional ATM, sicap Mobile ATM have been specially engineered to connect to mobile money platforms and provide bank grade ATM quality. In Hungary, Vodafone allows cash or bank card payments of monthly phone bills.The Hungarian market is one where direct debits are not standard practice, so the facility eases the burden of queuing for the postpaid half of Vodafone’s subscriber base in Hungary.

21. Mobile Ticketing Tickets can be sent to mobile phones using a variety of technologies. Users are then able to use their tickets immediately, by presenting their mobile phone at the ticket check.

22. Mobile vouchers, coupons and loyalty cards • Mobile ticketing technology can also be used for the distribution of vouchers, coupons, and loyalty cards. These items are represented by a virtual token that is sent to the mobile phone. A customer presenting a mobile phone with one of these tokens at the point of sale receives the same benefits as if they had the traditional token. Stores may send coupons to customers using location-based services to determine when the customer is nearby.

23. Content Purchase and Delivery • Currently, mobile content purchase and delivery mainly consists of the sale of ring-tones, wallpapers, and games for mobile phones. The convergence of mobile phones, portable audio players, and video players into a single device is increasing the purchase and delivery of full-length music tracks and video. The download speeds available with 4Gnetworks make it possible to buy a movie on a mobile device in a couple of seconds.

24. Location-based services The location of the mobile phone user is an important piece of information used during mobile commerce or m-commerce transactions. Knowing the location of the user allows for location-based services such as: • Local discount offers • Local weather • Tracking and monitoring of people

25. Information Services A wide variety of information services can be delivered to mobile phone users in much the same way as it is delivered to PCs. These services include: • News • Stock quotes • Sports scores • Financial records • Traffic reporting

26. Customized traffic information, based on a user's actual travel patterns, can be sent to a mobile device. This customized data is more useful than a generic traffic-report broadcast, but was impractical before the invention of modern mobile devices due to the bandwidth requirements.

27. Mobile Banking Banks and other financial institutions use mobile commerce to allow their customers to access account information and make transactions, such as purchasing stocks, remitting money. This service is often referred to as Mobile Banking, or M-Banking.

28. Mobile brokerage Stock market services offered via mobile devices have also become more popular and are known as Mobile Brokerage. They allow the subscriber to react to market developments in a timely fashion and irrespective of their physical location.

29. Auctions • Over the past yearsmobile, reverse auction solutions have grown in popularity.(http://en.wikipedia.org/wiki/Mobile_commerce) • Unlike traditional auctions, the reverse auction (or low-bid auction) bills the consumer's phone each time they place a bid. Many mobile SMS commerce solutions rely on a one-time purchase or one-time subscription; however, reverse auctions offer a high return for the mobile vendor as they require the consumer to make multiple transactions over a long period of time.

30. Mobile Browsing • Using a mobile browser—a World Wide Web browser on a mobile device—customers can shop online without having to be at their personal computer.

31. Mobile Purchase Catalog merchants can accept orders from customers electronically, via the customer's mobile device. In some cases, the merchant may even deliver the catalog electronically, rather than mailing a paper catalog to the customer. Some merchants provide mobile websites that are customized for the smaller screen and limited user interface of a mobile device.

32. In-application mobile phone payments Payments can be made directly inside of an application running on a popular smartphone operating system, such as Google Android. Analyst firm Gartner expects in-application purchases to drive 41 percent of app store (also referred to as mobile software distribution platforms) revenue in 2016. In-app purchases can be used to buy virtual goods, new and other mobile content and is ultimately billed by mobile carriers rather than the app stores themselves Ericsson’s IPX mobile commerce system is used by 120 mobile carriers to offer payment options such as try-before-you-buy, rentals and subscriptions.

33. Mobile marketing and advertising In the context of mobile commerce, mobile marketing refers to marketing sent to mobile devices. Companies have reported that they see better response from mobile marketing campaigns than from traditional campaigns. The primary reason for this is the instant nature of customer decision-making that mobile apps and websites enable. The consumer can receive a marketing message or discount coupon and, within a few seconds, make a decision to buy and go on to complete the sale - without disrupting their current real-world activity.

34. For example, a busy mom tending to her houshold chores with a baby in her arm could receive a marketing message on her mobile about baby products from a local store. She can and within a few clicks, place an order for her supplies without having to plan ahead for it. No more need to reach for her purse and hunt for credit cards, no need to log into her laptop and try to recall the web address of the store she visited last week, and surely no need to find a babysitter to cover for her while she runs to the local store. • Research demonstrates that consumers of mobile and wireline markets represent two distinct groups who are driven by different values and behaviors, and who exhibit dissimilar psychographic and demographic profiles.[As a result, successful mobile commerce requires the development of marketing campaigns targeted to this particular market segment.

35. INFLUENCE ON YOUTH MARKETS • Mobile media is a rapidly changing field. New technologies, such as WiMax, act to accelerate innovation in mobile commerce. Early pioneers in mobile advertising include Vodafone, Orange, and SK Telecom. • Mobile devices are heavily used in South Korea to conduct mobile commerce. Mobile companies in South Korea believed that mobile technology would become synonymous with youth life style, based on their experience with previous generations of South Koreans. "Profitability for device vendors and carriers hinges on high-end mobile devices and the accompanying killer applications," said Gibran Burchett.

36. PAYMENT METHODS Consumers can use many forms of payment in mobile commerce, including: • Premium-rate telephone numbers', which apply charges to the consumer's long-distance bill • Charges added to the consumer's mobile telephone bill, including deductions to pre-paid calling plans • Credit cards • Some providers allow credit cards to be linked to a phone's SIM card • Micropayment services • Stored-value cards, often used with mobile-device application stores or music stores

37. E-COMMERCE PLATFORMS

38. Which Platform and Architecture is Right for You? • HTML5 enables you to use web standard technologies like HTML5, CSS, and JavaScript while offering broad cross-platform portability. Write once, run anywhere with HTML5. • Choose iOS or Android to take advantage of each platform's native capabilities, including full access to the device hardware and features. • You can also chose a hybrid approach that converts an HTML5 web app into native binaries for iOS and Android. Hybrid apps combine the portability of HTML5 with native device capabilities, like the camera or address book. Click on either iOS or Android to learn more about how to build hybrid apps for that platform.