Chapter 9(doing business in e commmmmmmmmerce).pptx

to learn

1. E-Commerce at the Consumer Level Online Shopping - buying a product or service through a Web site. business-to-consumer (B2C) tram action effective online shopping sites share a few essential features: » A catalog where you can search for information about products and services. » A “checkout'’ scction where you can securely pay for the items you want to purchase. » A customcr-scrvice page, where you can contact the merchant for assistance.

2. Online Stores versus Physical Locations In a brick-and-mortar store (that is, a physical store that you can visit in person to do your shopping), you can wander the aisles and see the merchandise for yourself (see Figure 9B.3). If the store is too big or the layout too confusing, you can ask a clerk or a customer service representative for guidance. This is one big advantage of going to the store yourself.

3. In an online store (that is, a store that exists only on the Web, with no physical locations you can visit), you don't have that advantage . You can't walk the aisles, pick up the merchandise, or grab some free samples. You have to do all your shopping in your browser window. Amazon.com and PCConnection.com are examples of online stores, because they have no “ real’' store you can go to.

4. A hybrid merchant is callcd a click-and-mortar store—a physical store that also has a Web sire where you can shop. Best Buy and Nordstrom are examples of click-and-mortar stores because they have physical locations in many cities, as well as Web sites where you can view and purchase t n t their products (sec Figure 9B.4). Some click-and- »•«•<- «—. rmortar retailers let customers buy items online, then pick them up or return them at the store. This arrangement offers the best of both worlds in convenience and customer service.

5. Using Online Catalogs Online shopping would be very difficult if merchants did not provide easy-to-use catalogs on their Web sites. In the early days of e-commerce, many retailers struggled to come up with catalogs that were userfriendly for customers and easy to manage. Retailoriented Web sites need to be maintained and updated on a continuing basis, so that prices and descriptions arc always correct. Site managers and designers must be careful to balance their own needs against those of consumers, or they risk losing business.

6. Paying for Purchases Online merchants usually try to make online shopping as similar as possible to shopping at a real store. One way they do this is by letting shoppers fill a shop* ping cart—an electronic holding area that stores information about items that the customer has chosen for purchasing When you arc ready to make your purchase, you can pay for it in several ways. Two of the most common payment methods include the following: » One-Time Credit Card Purchase. If you do not want to set up an account with the seller; you can provide your personal and credit card information each time you make a purchase. » Set Up an Online Account. If you think you will make other purchases from the online vendor; you can set up an account at the Web site. The vendor stores your personal and credit card information on a secure server; and then places a special file (called a cookie) on your computer’s disk. Later, when you access your account again by'typing a user ID and pass* word, the site uses information in the cookie to access your account. Online accounts are required at some vendors* Web sites, such as brokerage sites that provide online investing services.

7. Online Banking The term online banking refers to using a bank’s Web site to handle banking-related tasks (see Figure 9B.10). Individuals and businesses alike can visit any bank’s Web site and do the following: » Create an account » Transfer funds » Rccord or view transactions » Reconcile statements » Pay bills

8. Online Finance The term online finance refers to any kind of personal financial transaction you can conduct online, other than managing your bank accounts (see Figure 9B.11). These activities include: Investing Applying for loans Applying for credit cards Buying insurance Preparing tax returns and paying taxes Doing financial research or seeking financial advicc

9. E-Commerce at the Business Level Business-to-Business (B2B) Transactions- Although millions of consumer transactions take place cach day on the Web, bu.finess-to-business (B2B) transactions actually account for most of the money that is spent online. As its name implies, a business-to-business transaction is one that takes place between companies; consumers are not involved.