E-COMMERCE & E-BUSINESS

AMAZON.COM???

Previously World’s biggest online

bookstore…
Who is the founder and CEO of
AMAZON.COM?

Jeffrey Bezos
Its Business is its technology;
its technology is its business.
About Bezos….
◻ Bezos graduated from Princeton and was the
youngest vice president at Bankers’ Trust in New
York. He had to decide if he would stay and receive
his 1994 Wall Street bonus or leave and start a
business on the Internet. “I tried to imagine being
80 years old, looking back on my life. I knew that I
would hardly regret having missed the 1994 Wall
Street bonus. But having missed being part of the
Internet boom-that would have really hurt”, stated
Bezos.
 About Bezos….
◻ One evening he compiled a list of 20 products he
believed would sell on the Internet. Books, being
small-ticket items that are easy and inexpensive to
ship, were on the top of the list. It was also apparent
that no book store could conceivably stock more than
a fraction of the 5 million books published annually.
Bezos, who had never sold a book in his life,
developed a strategic plan for selling books on the
internet. Amazon launched three years later. In the
fall of 1994, Amazon filled its first book order –
personally packaged by Bezos and his wife.
 Amazon’s E-Business Strategy
◻ Does not operate any physical stores.
◻ Consistently pushing the technological envelope in its
search to provide a satisfying, personalized experience
for its customers.
◻ Computer-generated recommendation engine morphed
from human-edited list of product suggestions.
◻ The comments and recommendations of buyers are
captured for site visitors to read (similar to the friendly
salesperson in a store offering advice on which books
to buy)
Amazon’s E-Business Strategy
◻ Tracks customer traffic, the no. of visitors, time of
their stay, pages they click on, and so forth and
uses the information to evaluate buying and selling
patterns and the success of promotions.
◻ Personalized recommendations
◻ Online customer reviews
◻ “1-click ordering”
Amazon’s E-Business Strategy
◻ A free web service for its associates where they
can access catalog data, to create and populate an
Amazon.com shopping cart and even to initiate the
checkout process. This has inspired 30,000
associates to invent new ways to extend Amazon’s
visibility on the internet.
The two terms….
◻ E -business and e-commerce are terms that are
sometimes used interchangeably, and sometimes
they're used to differentiate one vendor's product
from another. But the terms are different.
◻ In both cases, the e stands for "electronic networks"
and describes the application of electronic network
technology - including Internet and electronic data
interchange (EDI) - to improve and change
business processes.
In simple terms,
E-commerce is the buying and selling of goods
and services over the internet. It refers only to
online transactions.

E-business, derived from e-commerce, is the

conducting of business on the internet, not only
buying and selling, but also serving customers and
collaborating with business partners.
 E-COMMERCE vs. E-BUSINESS
i. E-Commerce is the subset of E-Business. The later
one is a very broad concept while the former one is
just a small part of it.
ii. Those activities which essentially involve monetary
transactions are termed as "e-commerce". However,
e-business is a much broader term. There are many
other things besides selling including but not limited to
marketing, procurement of raw materials or goods,
customer education, looking for suppliers etc.
iii. To sell online is e-commerce but to bring and retain
customers and educate them online about the product
or service is e-business.
iv. E-commerce has also been defined as a process
covering outward processes that touch customers,
suppliers and external partners while e-business
covers internal processes such as production,
inventory management, product development, risk
management, finance etc.
v. E-Commerce can be described as the use of
the Internet and the web to transact business.
More formally, digitally enabled commercial
transactions between and among
organizations and individuals. On the other
hand, E-Business can be described as the
digital enablement of transactions and process
within a firm, involving information systems
under the control of the firm. Moreover,
E-Business applications turn into e-commerce
precisely when an exchange of value occurs.
 Example
◻ When Dell sell computers, laptops, monitors,
printers, accessories etc online then it is not
engaged in e-commerce but e-business. When
a visitor comes on the website, the first thing he
see is website design and navigation as well as
those things which are going to help him find
what he is looking for and if he directly lands on
the page he was looking for, he looks for the
information related to it. The information
provided should be appealing and clear
maximum doubts of the visitor so as to convert
him in a client. Till now no money has been
exchanged nor been talked about.
So, was this e-commerce?
 No

it is
e-business
which guides the visitor