2. CONTENT
• INTRODUCTION,
• E-COMMERCE-DEFINITION,
• HISTORY OF E-COMMERCE ,
• TYPES OF E-COMMERCE,
• COMPARISON OF TRADITIONAL COMMERCE AND E-COMMERCE,
• E-COMMERCE BUSINESS MODELS,
• ADVANTAGES AND DISADVANTAGES OF E-COMMERCE ,
• WEB AUCTIONS,
• VIRTUAL COMMUNITIES,
• PORTALS,
• E-BUSINESS REVENUE MODELS.
3. •INTRODUCTION
ELECTRONIC COMMERCE or E-Commerce is a growing aspect of the business
community . This formally is the use of digital transactions between and among
business and individuals.
More commonly E-Commerce is the use of the internet to conduct business .
E-Commerce is the exchange of money for goods and services via electronic means.
E-Commerce is often referred to as Electronic commerce or E-Business . The
internet has revolutionized the business of today. Instead of having physical stores ,
companies can sell their products right off of the web.
4. MEANING OF E-COMMERCE
• Ecommerce, also known as electronic commerce or internet commerce,
refers to the buying and selling of goods or services using the internet, and
the transfer of money and data to execute these transactions. Ecommerce is
often used to refer to the sale of physical products online, but it can also
describe any kind of commercial transaction that is facilitated through the
internet. Whereas e-business refers to all aspects of operating an online
business, ecommerce refers specifically to the transaction of goods and
services.
5. DEFINITIONS
• THE WORLD TRADE ORGANISATION defined E-Commerce as , ‘ E-
Commerce is the production, distribution , marketing , sales or delivery of goods
and services by electronic means’.
• THE DUTCH MINISTRY OF ECONOMC AFFAIRS defined E-Commerce as ‘All
business activities carried out electronically with the intention of improving the
efficiency and effectiveness of market processes and business processes’.
• According to DANIEL MINOLI and EMMA MINOLI defined E-Commerce as “
the symbiotic integration of communication , data management, and security
capabilities to allow business applications within different organisation to
automatically exchange information related to the sale of goods and services”.
6. HISTORY OF E-COMMERCE
In 1968 E-Commerce got its start through an electronic data interface which
allowed companies the ability to complete transactions with each other.
In 1992 , Netscape introduced an internet browser that allowed for point and click
capabilities. This was the beginning of the internet craze . This was the first time
that ordinary people could get on the internet and navigate fairly and easily. Up
until this point it was reserved for computer programmers.
In 1995 , the two most recognizable E-Commerce companies today were
introduced. Both Amazon.com and eBay.com came onto the scene.
America Online (AOL) was the first to merge with a long standing company. The
merger of AOL and Time Warner allowed the companies to deliveer E-Commerce
to an enormous population of consumers.
7. CONTINUED…..
• At the time of the merger ,AOL had 24 million customers. This allowed AOL to
sell Timer Warner products electronically through their services directly to the
millions of customers they already had.
• It was a win-win for both companies AOL had the platform , and Time Warner had
the product.
8. • According to reports published by financial services firm Morgan Stanley in
2017e-commerce is estimated to grow over 1,200% to $200 billion (Rs13,30,550
crore) by 2026, from $15billion in 2016. By 2026, Morgan Stanley expects India
to have 475 million online shoppers when compared from 60 million in 2016.
9. • Searching and shopping using Voice search:- Artificial intelligence has
made voice search a rage. With the smart phones, people can search and
shop online with their voice.
• Reports show that about 40% of millennial have used a voice assistant to
search for products before making a purchase . Since voice search has
become more precise, consumers and E-Commerce retailers are reaping
benefits.
• It is also predicted that by 2020, the no.of people using voice search for
shopping with surpass 50%
10. COMPARISON BETWEEN
ELECTRONIC COMMERCE
• Enterprise – internet – consumer
• Entire world and 24*7
• Market space (network) , sale based on
information
• Anytime acquisition through internet,
digital data without no re-entry
• Less capital requirement
TRADITIONALCOMMERCE
• Manufacture- wholesaler-retailer-
consumer
• Restricted area , restricted sales hour
• Market space (store), sale based on
display
• Market survey and salesman, require
information re-entry
• Large capital requirement
11. Continued….
E- commerce
• Real time support for customer
dissatisfaction
• Real time acquisition of customer needs
• Goods cannot be inspected physically
before purchase
• Screen to face
Traditional commerce
• Delayed support for customer
dissatisfaction
• Time different for catching customer
needs.
• Goods can be inspected physically before
purchase
• Face to face
12. FEATURES OF E-COMMERCE
EFFECTIVENESS AND EFFICIENCY
UBIQUITY
GLOBAL REACH
STRONG RELATION WITH CUSTOMER
UNIVERSAL STANDARDS
14. TYPES OF E-COMMERCE MODELS
1. BUSINESS TO CONSUMER (B2C)
2. BUSINESS TO BUSINESS (B2B)
3. BUSINESS TO GOVERNMENT (B2G)
4. CONSUMER TO CONSUMER (C2C)
5. CUSTOMER TO BUSINESS (C2B)
6. PEER TO PEER
17. Below is a list of the world's top best B2B websites.
•Alibaba. The world's best b2b website for global wholesale trade, Alibaba is the
largest B2B online marketplace in the world. ...
•IndiaMART. ...
•eWorldTrade. ...
•Made-in-China. ...
•GlobalSources. ...
•DHgate. ...
•TradeIndia. ...
•iOffer.
22. BENEFITS OF E-COMMERCE
TO BUSINESS
• It helps to reach global
• Cost effective
• New customers with search engine visibility
• It reduces the paper cost
• Reduction in inventories
• Mass customization and competitive advantage
• No middlemen
23. CONTINUED….
• Reduced production lead time
• Improved customer relationship
• Lower sale and marketing costs
• Lower telecommunication costs
• New found business partners
• Increased supply chain efficiencies
• Digitization of products and processes
• Information sharing
24. BENEFITS TO CONSUMERS
• Gives freedom to make choices
• Increase in variety of goods
• It gives more choice and alternatives
• Convenience of shopping at home
• Ensure secrecy
• More competitive prices and increased price comparison capabilities
25. CONTINUED…..
• Access to greater amounts of information on demand
• Time compression
• Quick delivery of digitized products/services
• Provide comparison shopping
• E-payment system
26. BENEFITS TO SOCIETY
• Enables more flexible working practices
• Connects people
• Facilitates delivery of public services
27. DISADVANTAGES
• E-commerce lacks that personal touch
• System and data integrity
• E-commerce delays goods
• System scalability
• Dependent on internet
• Many goods cannot be purchased online
28. CONTINUED….
• Products people won’t buy online
• E-commerce does not allow experiencing the product before purchase
• Loyal customers
• Shopping is social experience
• Anyone cam set up an economic website
• Too many competitors
• Security .
29. STEPS IN E-COMMEREC
STEP -1 STARTING OUT:
Simple messaging using mobile communications
STEP -2 GETTING OUT:
Email messaging
STEP –3 WEB PUBLISHING
STEP -4 WEB INTERACTING
STEP -5 WEB TRANSACTING
STEP-6 WEB INTEGRATION
36. SUCCESSFUL E-COMMERCE STRATEGIES
• Multiple store front expansions
• Competitive re-pricing options
• Adoption of legacy systems
• Develop a highly quality virtual catalogue
• Valuable reporting
• Advertise on search engines
• Negotiable links with other websites
• It should be flexible and forward integration
• Using new technology
37. BARRIERS TO E-COMMERCE
• Language
• Socioeconomic barriers
• Economic condition
• Poor education system
• Payment system
• Political and governmental barriers
• Transactional trust
38. WEB AUCTIONS
WEB AUCTIONS or ONLINE AUCTIONS are sales transactions that result from a
competitive bidding process conducted over the Internet.
The consumer online auction process has been described as being similar to a garage
sale, with commonly offered items including collectibles, antiques, toys, clothing, art,
cars, tickets, electronics and even real estate.
39. FRAMEWORK OF WEB AUCTION
• Selling on e-Bay
• Fully use the “About Me” page
• Shop the competition
• Choose the category
• Write an informative and compelling description
• Select a format
• Use photos to advantage
40. CONTINUED….
• Set the price
• Establish the auction length
• State payment methods acceptable
• Determine shipping costs and who will pay
• Provide quality customer service
43. VIRTUAL COMMUNITY
• MEANING :- A Virtual community is a network which work within a social network
of individual by any specific media and which have no limit about geographical area as
well as political restriction .
A virtual community is a group whose members are connected by means of
information technologies , typically the Internet.
In other words, VC is a community of people sharing common interest, ideas, and
feelings over the Internet or other collaborative networks.
44. CONTINUED….
• A group sharing common interests in cyberspace rather than physical space virtual
communities exist in discussion groups, chat rooms, listserv, those that are embedded in
web sites, multi-user domains (MUDs) and object-oriented (MOOs), and new groups
“virtual communities” can be described using key words such as “social relationship”,
“virtual place” , “ group of people” , “common interests”, and “communication”.
45. CHARACTERISTICS OF VIRTUAL COMMUNTIES
Collective knowledge
Economics of increasing returns
i. Marginal cost effect
ii. Learning curve effect
iii. Network externalities effect
46. FRAME WORK THAT DEFINES THE VIRTUAL
COMMUNITY
• VIRTUAL COMMUNITY as PLACE
• VIRTUAL COMMUNITY as SYMBOL
• VIRTUAL COMMUNITY as VIRTUAL
47. THREE FUNDAMENTAL NEEDS OF VIRTUAL
COMMUNITY MEMBERS IN THEIR ON-LINE
ACTIVITIES
Functional needs
Social needs
Psychological needs
48. BENEFITS OF VC
• More flexible
• Easy relevance
• Community
• Limitless
• Choice
49. LIMITATIONS OF VC
• Overloading information
• No physical documents
• Directionless
• Inefficient
• Threads
50. PORTALS
• A PORTAL is a website which collects catalogues and characterizes a huge amount
information. By displaying a large number of hyperlinks such sites provide an
entrance to the World Wide Web.
• Portals are categorized as either horizontal or vertical portal. A vertical portal offers
an entrance to large amount information into a particular topic area. For example :
American football.
51. CONTINUED….
• A WEB PORTAL or PUBLIC PORTAL refers to a web site or services that offers a
broad array of resources and services as e-mail, forums, search engines and online
shopping malls.
• the first web portals were online services , such as AOL, that provided access to the
web, but by now most of the traditional search engines have transformed into web
portals to attract and keep larger audience.
• As defined by IBM, an Internet portal is “a single integrated ,ubiquitous, and useful
access to information (data) , application and people.”
52. IMPLEMENTATIONS
• E-LEARNING WEB PORTAL with online learning materials, quizzes, forums and
study notes.
• LIFESTYLE WEB PORTAL with forum , useful articles, merchants’ ads and
promotions.
• EVENTWEB PORTAL with online registration, seats reservation, calendaring and
search.
• TRAVEL WEB PORTAL with travelling tips, tour packages, promotions and online
booking.
53. BENEFITS OF PORTAL
• Simplify the integration issues
• Provide single sign of common application
• Supports for port lets and functionality
• Provides better customization
• Offers user friendly and flexible web portal
54. THE DIFFERENT TYPES OF PORTALS
• Vertical Portal
• Horizontal Portal
• Marketplace portals
• Search portals
• Media Portals
• Access Portal
• Geographical Portal
55. VERTICAL PORTAL
Some examples of vertical portals include:
• www.contractor.com - a vertical portal for the construction industry.
• www.shotgunsports.com - for shooting sports community.
57. ADVANTAGES OF CREATING PORTAL
• Provide data from multiple source and in multiple formats that can be organised into a
single menu;
• Provide web-based services such as chat rooms, searches, free password-protected
email, FTP, bulletin boards, live-moderated events, forums, news, entertainment, and
retail services;
• Incorporate triggers that alert users or run an application when a specific event takes
place;
• Allow users to conduct business transactions.
58. DISADVANTAGES OF CREATING PORTALS
• Extremely competitive environment;
• Inability to complete the business transaction/get the sale;
• Having too much or too little information and thereby either confusing or
frustrating the user;
• A related issue to the above is having the latest information.
59. E-BUSINESS REVENUE MODELS
• Web catalogue revenue model
• Digital content revenue model
• Advertising – supported revenue model
• Advertising – subscription mixed revenue model
• Fee-for-transaction revenue model
• Fee-for-service revenue model
• Internet marketing
• Web design
60. CONTINUED…
• Market segmentation
• Geographic segmentation
• Psychographic segmentation
• Market segmentation on the web
• Behavioural segmentation
• Choosing a domain name
• Marketing research
