LESSON 1: INTRODUCTION TO ELECTRONIC COMMERCE

1.1. Vocabulary
A. Useful language
Internet Revolution
The World Wide Web (www, or the Web), a user-friendly information-sharing
network system, quietly came into being and began to spread
Worldwide distribution channel
The methods used by a company to deliver its products or services to the end
consumer
Consumer segmentation
The process of grouping customers according to how and why they buy
Consumer value
How much a product or service is worth to a customer
Consumer behaviour
The decisions that people make to buy or not to buy a product, and the things
that influence their decisions
Labor market
The place where workers and employees interact with each other
Computer network
A group of interconnected nodes or computing devices that exchange data
and resources with each other
E-business
The business of buying and selling goods and services on the internet, or a
particular company that does this
Electronic transaction
A process of exchanging electronic data within computer-mediated networks
Digitization
The process of converting information into a digital format
The ordering system
The programs that take our forecasts, actual orders, safety stock, and, and
order quantities, and turn them into purchase orders or production orders
The processing
The act of taking something through a set of prescribed procedures.
The shipment method
Pure EC
Business transactions conducted entirely online or in a digital environment
Partial EC
A type of e-commerce that allows customers to purchase products and
services online, but also have the option to pick up the product or service at a
physical store.
Brick-and-mortar organization
Existing as a physical building, especially a shop, rather than doing business
only on the internet
Virtual organization
One whose employees are spread geographically and communicate via phone,
email, and the internet.
Click-and-mortar organization
A business model that combines both online and offline channels for business
operations
E-marketplace
A virtual online market where organisations register as buyers or sellers to
conduct business-to-business e-commerce over the internet
Intranet
a private network contained within an enterprise that is used to securely
share company information and computing resources among employees.
Extranet
 A system of computers that makes it possible for a company and people
outside the company to communicate and share information over the internet

B. Match these phrases to their meanings

1 extranet a conduct their business activities solely

online
2 e-marketplace b uses Internet tools, such as Web
browsers, and Internet protocols
3 virtual organizations c refers to business transactions
conducted entirely online or in digital
environment
4 click-and-mortar d the process of converting information
organization into a digital format
5 intranet e the customer's perception of the worth
of your product or service
6 consumer segmentation f conduct some e-commerce activities,
usually as an additional marketing
channel
7 pure EC g uses the Internet to link multiple
intranets
8 e-business h where buyers and sellers meet to
exchange goods, services, money, or
information
9 e-commerce i any process that a business organization
conducts over a computer-mediated
network
10 digitization k the buying and selling of goods and
services, or the transmitting of funds or
 data, over an electronic network
11 customer value l the process of grouping customers
according to how and why they buy
12 Internet Revolution m the study of how individual customers,
groups or organizations select, buy, use,
and dispose ideas, goods, and services
13 consumer behavior n Between 1993 and 1995, the World
Wide Web a user-friendly information-
sharing network system, quietly came
into being and began to spread.

C. Complete these sentences with word partnerships from Exercise B

1. An ……………… is a private network that connects devices and computers within an
organization.

2. ……………… types are determined by what kind of product a consumer needs, the
level of involvement, and the differences that exist between brands.

3. ……………… includes activities like buying and selling product, making monetary
transactions etc over internet.

4. Apple's iTunes is an excellent example of a ……………… company that is already

running.

5. ……………… are e-commerce companies and its various internal business activities,
auction site, classified site, software and hardware developer site etc.

6. A ……………… is one whose employees are spread geographically and communicate

via phone, email, and the internet.
7. eBay is an ……………… that allows you to sell your goods or find them.

8. For businesses, one of the main advantages of the ……………… is that websites have
a further geographic reach than physical, offline shops.

1.2. Reading
The Great Amazon Success Story: Journey From A Garage Bookstore To Trillion
Dollar Empire
By: Tarun Sikder
No business can be successful without a digital presence in this day. The e-commerce
industry is a cut-throat industry, and only those with a strong online presence thrive
and succeed in it. But one company that happens to start off from a mere bookstore
has now become the biggest and the most successful eCommerce brand in the
world. Amazon's success didn't come overnight. For its success, it had to conquer
and do the unthinkable. It took some really hard steps down the way and stuck to a
strict moto to turn its eCommerce business into a money-making machine. Many
people think they have been able to achieve this position through its innovative
ideas, customer-centric strategy, and its ability to change the world of eCommerce.
But in reality, there is a lot more than it had to take to reach this height.
(1) ……………………………………………………….
The Amazon website, which was founded in 1995 by Jeff Bezos, is a global e-
commerce company that sells billions of products every year across more than 190
countries. Amazon has now slowly become one of the most popular eCommerce
brands in the world. It is a household name and has been around for more than two
decades. Amazon started off as an online bookstore and then expanded to sell DVDs,
CDs, and eventually other products. Amazon is the largest book-seller in the US.

(2) ……………………………………………………….
Journey of Amazon began in 1994 in a home office in Seattle when Jeff Bezos quit his
job on Wall Street to start his innovative project. Amazon was originally called
“Cadabra.” The name actually came from one of the internet’s earliest pioneers who
coined the term “cadabra” meaning “it’s possible”.

The innovative idea behind the company came about after Amazon Chief Executive
Jeff Bezos had a visionary experience where he saw a bunch of buildings floating on
the ocean.

(3) ……………………………………………………….
Amazon Success Story over the years is based on a number of key factors. In fact,
there are many reasons why Amazon was so successful. One reason is that they were
one of the first companies to really capitalize on the power of the internet. They
were able to build a massive online presence early on and then use that to their
advantage.

Of course, for businesses to be so successful, there are so many factors that must be
taken into consideration and Amazon did just what was important. Some of the
common factors include:

 Simple to use and seamless interface to manage all your eCommerce needs in
a single, accessible platform.
 A leading eCommerce platform with a growing client base of more than
100,000 e-commerce clients and top-rated customer service.
 Customization options in every aspect of your business to your liking. You can
even change the font and color of your site.
 The convenience of shopping from your iOS or Android smartphone or tablet.
 Specialization in all eCommerce verticals and markets.
 Extensively used by sellers to manage their business and increase sales.
  Used by leading marketplaces, eCommerce sellers and brands.

(4) ……………………………………………………….
When it comes down to Amazon and top-notch customer service, the company has
set itself apart as a go-to online store when it comes to shopping. With fast and
reliable delivery times, cheap yet high-quality products, secure and convenient
payment methods, plus the option to replace damaged or lost orders should the
need arise. Amazon is now becoming a household name and deserving of its success
all because they have managed to focus on the one thing that matters most here:
Consumers are always King!

(5) ……………………………………………………….
Amazon sells a huge number of different products. They have categories for
everything from clothing to electronics, so it's easy to find something that works for
you. You can see their selection over at Amazon or buy from a third-party seller on
their site.

(6) ……………………………………………………….
Amazon has a wide understanding of modern technology and implements it into its
business model. For example, Amazon's recent product offering, the Amazon Echo, is
a voice-controlled device that allows you to request music be played, hear the news
and traffic reports, control your TV set, listen to podcasts, and much more!

(7) ……………………………………………………….
Amazon’s shipping speed is consistently fast and reliable, but it depends on the
customer’s geographical location. For those paying a little extra a month, Prime
members get two-day shipping extensions, with some orders arriving even on the
same day.
Packages also include tracking numbers which allow customers to check the status of
their order wherever they are at any given time.
(8) ……………………………………………………….
Amazon has had a lot of success with its online marketplace, Amazon.com. They
recognized the potential to expand their business outside of their website and thusly
opened up several more storefronts in physical locations such as Kohl’s, making it
easy for customers who prefer to shop outside of the internet. By doing so, they can
sell a variety of their own brand products from their own produce or snack food line
or have sales on any customer returns on-site at said location.

A. Match the headings with the paragraphs

a) Promise to Deliver Goods Quickly
…………………………………………………………………………………………..
b) Availability of a Wide Range of Products
…………………………………………………………………………………………..
c) Innovative Sales Strategies
…………………………………………………………………………………………..
d) Focus on Putting Customers' Service First
…………………………………………………………………………………………..
e) Why Was Amazon So Successful
…………………………………………………………………………………………..
f) Beginning of Amazon's Success Journey
…………………………………………………………………………………………..
g) Cutting-edge Technology
…………………………………………………………………………………………..
h) History of Amazon as An eCommerce Brand
…………………………………………………………………………………………..

B. True or False
 1. Amazon is the largest book store in the world.
2. Amazon.com was almost called “Cadabra”.
3. The reason for Amazon Success is that they were one of the first
companies to really capitalize on the power of the internet
4. Amazon started off as an online bookstore and then expanded to
sell DVDs, CDs.
5. Amazon’s shipping speed is consistently fast, reliable, and
complimentary.
6. Amazon will open brick-and-mortar stores to accommodate
customers who want to shop in-store.

C. Answer these questions

1. Why is customer service at Amazon highly regarded?
2. How can customers check the status of their order?
3. What does the amazon marketplace provide customers around the world?

1.3. Language review

Word order and focus
A. Noun
Identify a noun in a sentence

Suffix Example Suffix Example

1 -ion Production 6 -er Teacher,

Possession -or Doctor,
-ist Dentist,
-ee Employee,
-eer Volunteer
2 -ness Willingness 7 -ism Capitalism

3 -ence Difference 8 -ship Membership

-ance Importance -hood Childhood

4 -ment Agreement 9 -th Depth

5 -ity Security 10 -dom Freedom

Noun positions

1. The subject or object of the sentence.

Pollution is harmful to our health.

2. After adjectives or possessive adjectives

His mother is a good teacher

3. After articles (a, an, the), demonstrative pronouns this, that, these, those….)
The dolphin is an intelligent animal.

4. After quantifiers
Didn’t you borrow some books of mine?

5. After prepositions
The carpenter build the fence around the garden

B. Adjective
Identify a noun in a sentence
 Suffix Example Suffix Example

1 -able Available 7 -ent Dependent

-ible Possible -ant Important

2 -ive Active 8 -al Musical

3 -ous Famous 9 -ful Beautiful

4 -ic Realistic 10 -less Careless

5 -y Wealthy 11 -ing Interesting

6 -ly Friendly 12 -ed Excited

Adjective positions

After To be, linking verbs…

+ Be: am/is/are/was/were/been
Ex: The girl is beautiful
+ Linking verb: look/seem/smell/find/taste/sound/feel…
Ex: The plan seems feasible.
+ Stay/remain/become
Ex: Since she was a singer, she has become beautiful

Before noun:
Ex: He’s an excellent president
C. Adverb
Identify an adverb in a sentence
Trạng từ có thể nhận biết qua hậu tố: -ly
Perfectly differently carefully

Adverb positions
After or before verbs
Ex: He accurately entered all the data.
Before adjective
Ex: It is a highly innovative design.
Before adverb
Ex: He behaved extremely badly.

D. Verb
Identify a verb in a sentence

Suffix Example
1 -en Widen
2 -(i)fy Simplify
3 -ise Realize
-ize
4 -ate Activate

Verb position
After subject
Ex: She teaches English

PRACTICE
1. Because there is a need for ……………… repairs, the Paliot 12Z conveyor belt is
scheduled to be replaced by a more efficient model.
(A) frequent
(B) frequently
(C) frequency
(D) frequents

2. Any problems with the new software system should be reported to the system
administrator ………………
(A) prompt
(B) promptness
(C) prompts
(D) promptly

3. Because of a ……………… increase in profits this quarter, Tyro Sportswear

employees will receive their first-ever year-end bonus.
(A) dramatically
(B) dramatize
(C) dramatic
(D) drama

4. Amonarth Premium paints are highly ……………… to most stains and can be cleaned
easily with soap and water.
(A) resistance
(B) resisted
(C) resistant
(D) resists
5. ……………… demonstrating an impressive work ethic, Ms. Hyun often takes on extra
projects in addition to her regular workload.
(A) consistently
(B) consistency
(C) consisted
(D) consistent

6. In her latest article Earthbound Science Journal, ecologist Mei Ling offers a
……………… review of Paul Winthrop’s research on drought resistance.
(A) critic
(B) critical
(C) criticize
(D) critically

7. Major industries in this district include food processing and aircraft ………………
(A) manufacturer
(B) manufactures
(C) manufactured
(D) manufacture

8. Evergo’s latest hiking shoe, the Rugged Wear Trekker, is ……………… named for its
durability and strength.
(A) suitably
(B) suitable
(C) suitability
(D) suitableness

9. Since employees often have to meet with clients with no prior notice, Park Interior
Design requests dress code ……………… at all times.
(A) compliant
(B) compliance
(C) comply
(D) complies

10. Ms. Yasuda’s ……………… in managing difficult projects has earned her respect
from colleagues and company officials
(A) succeed
(B) success
(C) succeeds
(D) successful

11. Customers with concerns about the safety of the product are advised to call the
……………… as soon as possible.
(A) manufacture
(B) manufacturing
(C) manufacturer
(D) manufactured

12. Tonight’s performance is ……………… to raise awareness about our city’s urban
renewal initiative.
(A) intend
(B) intended
(C) intention
(D) intending

13. The ……………… outlay of assets for the construction of the new street car lanes
has been cited by newspapers as the main course of the project’s dismissal.
(A) initially
(B) initiate
(C) initiation
(D) initial

14. While the engineering team’s ……………… has improved, overall productivity has
been in a noticeable decline for the past three years.
(A) motivate
(B) motives
(C) motivational
(D) motivation

15. Local libraries ……………… offer reading programs for children and ESL for adults.
(A) frequently
(B) frequenting
(C) frequent
(D) frequented

1.4. Discussion
A. Work in group:
1. What are the significant advantages e-commerce brings to customers in your
country?

2. What are the significant benefits that online sales can bring to companies in
your country?

B. What benefits are important to you in a city? Put the following in order 1–5 (1 is
the most important).

Choose From Wide Range of Goods

 Get detailed information
Save time
Save money
Enjoy simplicity and comfort

1.5. Listening
A. Listen to the conversation and answer the questions.
1. What is the man concerned about?
A. Finishing a project on time
B. Paying for his new mobile phone
C. Repairing a piece of equipment
D. Learning a new skill

2. Where do the speakers work?

A. At a repair shop
B. At an electronics store
C. At a marketing firm
D. At a design company

3. What does the woman offer to do?

A. Provide assistance
B. Pay in cash
C. Fill in for the man
D. Email a user manual

B. Listen again and complete the extract.

Thompson: Joanne, did you hear that all employees will be receiving free
 ……………… next week? I’m excited about it, but actually I
don’t know how to use one. Even my ……………… is not a
smartphone
Joanne: Don’t worry about it. I have one at home and they are very
………………. You won’t have any trouble ……………… yourself
with it.
Thompson: I’m glad to hear that. As a logo ………………, we can definitely
use the tablet computers to increase work ……………….
Joanne: You’re right. If you have any questions, feel ……………… to ask
me for help.

1.6. Case study

ALIKOLO
Alikolo was an Indonesian e-Commerce
Marketplace.
Founded in: 2014 – 2015
Location: Jakarta, Indonesia
Founded by: Danny Taniwan

Background
What does Alikolo do?
Alikolo is an Indonesian online marketplace where users can find products ranging
from electronics to fashion and accessories. It ceased its operations in June 2015.

What sectors and market segments does Alikolo operate in?

Alikolo serves in the B2C space in the Retail market segments.
Who are the investors in Alikolo?
 Alikolo does not have any institutional investors.
 Alikolo does not have any Angel Investors.

Founders and Board of Directors of Alikolo

Who are the CEO, Founders and Directors of Alikolo?
 Danny Taniwan, Founder, is a founder of 1 company.

Competitors of Alikolo
Competitive landscape of Alikolo
 Alikolo has 145 active competitors and it ranks 74th among them.
 4 of its competitors are funded while 8 have exited.
 Overall, Alikolo and its competitors have raised over $4.68B in funding across
37 funding rounds involving 65 investors.
 There are no private Unicorns in the entire competition set.
Which are the top competitors of Alikolo?
 Lazada - Singapore based, 2012 founded, Acquired company
 Blibli.com - Jakarta based, 2011 founded, Public company
 Tokopedia - Jakarta based, 2009 founded, Acquired company

Task
1. Imagine that you are the CEO and Consultants of Alikolo, what should you do
to save the company.
2. Work in small groups and decide which lessons you will learn from the failure
of Alikolo.