Ecommerce_CH-1.ppt E-Commerce Chapter one

E-Commerce

1. CHAPTER ONE CHAPTER ONE
OVERVIEW OF E-COMMERCE
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2. What is E-commerce ?What is E-commerce ?
 E-Commerce or Electronics Commerce is a methodology of
modern business, which addresses the requirements of business
organizations vendors and customers to reduce cost and improve
the quality of goods and services while increasing the speed of
delivery.
It can be broadly defined as the process of buying or selling of goods
or services using an electronic medium such as the Internet
E-Commerce or Electronics Commerce is a methodology of modern
business which addresses the need of business organizations.
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3. ……cont’’cont’’
E-commerce is an emerging concept that describes the
process of buying and selling or exchanging of products,
services, and information via computer networks including
the internet.
Digitally enabled commercial transactions between and
among organizations and individuals.
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4. ……cont’’’cont’’’
Ecommerce refers to the paperless exchange of
business information using the following ways:
Electronic Data Exchange (EDI)
Electronic Mail (e-mail)
Electronic Fund Transfer (EFT)
Other Network-based technologies
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5. ..cont’’’..cont’’’
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Electronic Document Interchange.

6. Definition of E-Commerce from Different Definition of E-Commerce from Different
Perspectives: Perspectives:
Communications Perspective: E-commerce is
the delivery of information, products/services, or
payments over the telephone lines, computer
networks or any other electronic means.
Business Process Perspective: E-commerce is
the application of technology toward the
automation of business transactions and work
flow.
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7. ……cont’’’cont’’’
Service Perspective: E-commerce is a tool that addresses the
desire of firms, consumers, and management to cut service
costs while improving the quality of goods and increasing the
speed of service delivery.
Online Perspective: E-commerce provides the capability of
buying and selling products and information on the internet
and other online services.
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8. Features of E-Commerce Features of E-Commerce
E-Commerce provides the following features:
Non-Cash Payment : E-Commerce enables use of credit
cards, debit cards, smart cards, electronic fund transfer via
bank's website and other modes of electronics payment.
24x7 Service availability: E-commerce automates business
of enterprises and services provided by them to customers
are available anytime, anywhere. Here 24x7 refers to 24
hours of each seven days of a week.
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9. contcont
Advertising / Marketing: E-commerce increases the reach of
advertising of products and services of businesses. It helps in
better marketing management of products / services.
Improved Sales: Using E-Commerce, orders for the products
can be generated any time, any where without any human
intervention. By this way, dependencies to buy a product reduce
at large and sales increases.
Support: E-Commerce provides various ways to provide pre
sales and post sales assistance to provide better services to
customers.
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10. Cont’’Cont’’
Inventory Management: Using E-Commerce, inventory
management of products becomes automated. Reports get
generated instantly when required. Product inventory
management becomes very efficient and easy to maintain.
Communication improvement: E-Commerce provides
ways for faster, efficient, reliable communication with
customers and partners.
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11. E-commerce and E-businessE-commerce and E-business
E-commerce primarily involves transactions that cross firm
boundaries.
E-business primarily concerns the application of digital
technologies to business processes within the firm.
It means-there is no commercial transaction (i.e. exchange
of value) in E-business but E-commerce involves
commercial transaction.
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12. Unique Features of E-commerce Technology Unique Features of E-commerce Technology
Some unique features of E-commerce technology that is why it is in
more demand comparing to Traditional commerce
Ubiquity: E-commerce is ubiquitous, meaning that it is available
just about everywhere, at all times.
Global Reach: The potential market size for e-commerce
merchants is roughly equal to the size of the world’s online
population
Universal Standards: E-commerce, are universal standards-they
are shared by all nations around the world.
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13. Cont’’’Cont’’’
Information Richness: Information richness refers to the
complexity and content of a message.
Information Density: Information density the total amount
and quality of information available to all market participants,
consumers, and merchants alike.

Personalization/Customization: E-commerce
technologies permit personalization. Merchants can target their
marketing messages to specific individuals by adjusting the
message to a person’s name, interests, and past purchases.
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14. Traditional Commerce versus E-CommerceTraditional Commerce versus E-Commerce
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15. Limitation of E-commerce over traditional commerceLimitation of E-commerce over traditional commerce
 Expensive Technology: Using the internet requires $10/month
connect charge.
Sophisticated Skill Set: The skills required to make effective use
of the internet and e-commerce capabilities are far more
sophisticated than, say, for television or newspapers.
Cultural Attraction and Social Event: For many, shopping is a
cultural and social event where people meet directly with merchants
and other consumers. This experience cannot yet be duplicated in
digital form.
Limited Access of Technology: Most of the world’s population
does not have telephone service, PCs, or cell phones.
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16. E-Commerce - AdvantagesE-Commerce - Advantages
 E-Commerce advantages can be broadly classified in
three major categories:
Advantages to Organizations
Advantages to Consumers (customers)
Advantages to Society
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17. Advantages to Organizations
Using e-commerce, organizations can expand their market to
national and international markets with minimum capital
investment. An organization can easily locate more customers,
best suppliers, and suitable business partners across the globe.
E-commerce helps organizations to reduce the cost to create
process, distribute, retrieve and manage the paper based
information by digitizing the information.
E-commerce improves the brand image of the company.
E-commerce helps organization to provide better customer
services.
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18. ……Cont’’’Cont’’’
E-commerce helps to simplify the business processes and makes
them faster and efficient.
E-commerce reduces the paper work.
E-commerce increases the productivity of organizations. It supports
"pull" type supply management. In "pull" type supply management, a
business process starts when a request comes from a customer and
it uses just-in-time manufacturing way.
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19. Advantages to Customers
It provides 24x7 support. Customers can enquire about a product
or service and place orders anytime, anywhere from any location.
E-commerce application provides users with more options and
quicker delivery of products.
E-commerce application provides users with more options to
compare and select the cheaper and better options.
A customer can put review comments about a product and can see
what others are buying, or see the review comments of other
customers before making a final purchase.
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20. ……Cont’’’Cont’’’
E-commerce provides options of virtual auctions.
It provides readily available information. customer can see the
relevant detailed information within seconds, rather than
waiting for days or weeks.
E-Commerce increases the competition among organizations
and as a result, organizations provides substantial discounts to
customers.
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21. Advantages to SocietyAdvantages to Society
◦Customers need not travel to shop a product, thus less traffic on
road and low air pollution.
◦E-commerce helps in reducing the cost of products, so less
affluent people can also afford the products.
◦E-commerce has enabled rural areas to access services and
products, which are otherwise not available to them.
◦E-commerce helps the government to deliver public services
such as healthcare, education, social services at a reduced cost
and in an improved manner.
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22. E-Commerce - DisadvantagesE-Commerce - Disadvantages
◦The disadvantages of e-commerce can be broadly
classified into two major categories:
Technical disadvantages
Non-Technical disadvantages
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23. Technical DisadvantagesTechnical Disadvantages
There can be lack of system security, reliability or
standards owing to poor implementation of e-commerce.
The software development industry is still evolving and
keeps changing rapidly.
In many countries, network bandwidth might cause an
issue.
Special types of web servers or other software might be
required by the vendor, setting the e-commerce
environment apart from network servers.
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