The document provides an overview of electronic commerce (e-commerce) and its history. It discusses how e-commerce first emerged in the mid-1990s with companies like Pizza Hut offering online ordering. Major online retailers like Amazon and eBay were launched in the 1990s. The document also outlines some common e-commerce models like online shopping, auctions, and banking. It provides details on the founding and growth of eBay, describing how it works and makes a profit through seller fees. Finally, it encourages students to research and present on a business that utilizes e-commerce.

1.  6/12

2.  Electronic Commerce
 Commerce – buying and selling.
 E-Commerce – the buying and selling of
goods or services over the internet or via
a computer connection.
 A modern way of trading. The first
example of E-commerce taking place
on the internet was only recorded in the
mid 1990s.

3.  Introduction to E-Commerce
 A Short History of E-Commerce
 Companies that use E-Commerce
 Benefits of E-Commerce
 Data Integrity and Security
 How does E-Commerce work?
 Setting up an E-Commerce Business

4.  1994 – Netscape Navigator, an internet
browser, is invented. Pizza Hut offers online
pizza ordering. The first online bank opens.
Cars and bikes are available on the
internet.
 1995 – Amazon is created, an online
company selling books, DVDs and CDs.
EBay is launched, the first online auction
company.
 1999 – PayPal launched, allowing safe and
secure financial transactions to be carried
out over the internet.

5.  Almost all national and international
companies offer E-commerce.
 Many companies only offer E-Commerce
services.
 Most major banks offer online banking.
 When did you last use E-commerce?
 Can you give me some examples of E-
commerce you have used?

6.  Direct sales – Companies selling their
products or services direct to the
customer via the net.
 Online banking
 Online auctions – Bidding against other
consumers for products and services.
 Online media sales – Buy and download
music, e-books, movies, TV series,
computer software.

7.  American Internet Company
 Online Auction
› Auction – Customers bid (offer) money for
goods or services. The highest bidder is
successful.
 Online Shopping
 Allows people to buy and sell goods
and services online all over the world..

8.  Founded in 1995 – known as
AuctionWeb.
 First item sold was a broken laser pointer
 1997 – AuctionWeb changed it’s name
to EBay.
 1997 – EBay began to offer Travel services
on the internet.
 1998 – EBay went public (the company
was listed on the Stock Exchange and
people could buy and sell shares in EBay)

9.  EBay makes a profit by charging sellers
a commission on any auction they
successfully complete.
 The commission fee for each item is
between 1% and 5%.
 For example, an item worth $1000 sold
on EBay will earn the company
somewhere between $10 and $50.
 There is also a small fee to list items on
EBAY, about 1%.

10.  In 2002 EBay bought the internet banking
service company PayPal.
 PayPal allows payments and money
transfers to be carried out through the
net.
 Customers sign up with their email
address and bank or credit card details.
 PayPal automatically debits or credits
money on a customers’ account.

11.  What is the most expensive item that has
ever been sold on EBay? Have a guess...

12.  A Yacht
 A bargain...
› $168,000,000
It was purchased by Roman Abramovich,
the Russian billionaire owner of Chelsea
Football Club.

14.  We’ve had a look today at EBay. There
are thousands of websites that use E-
Commerce. For example:
› www.amazon.com
› www.iTunes.com
› www.dell.com
› www.airasia.com
› www.paypal.com
› www.buy.com
› www.westernunion.com

15.  Study a Business that uses E-Commerce more
than any other type of sales.
 Create a presentation to tell the rest of the class
about your business.
 Include:
› General Information
› What goods or services does the company sell?
› How does the company use E-Commerce?
› How does a customer obtain goods or services using
› Example of an E-Commerce transaction
› History
› Interesting facts
› Information about the website

16.  Next lesson you will present your work.
 Every member of the group must speak.
 I’m looking for professional and well
presented work.
 Remember, this lesson is E-Commerce, so
make sure you understand the E-
Commerce within your chosen
company!