ASSIGNMENT COVER SHEET

Surname Dinis

First Name/s Lucinda Rosa Antonio

Student Number 185923

Module Information Systems (IS6)

Assignment
Number Assessment 2 (Case Study)

Tutor’s Name Sudika Ramrathan

Examination
Venue Online

Date Submitted 27 April 2022

Submission (√) First Submission Resubmission

29 Honey Pine
29 Ebury Avenue
Postal Address
Bryanston
2191

E-Mail 185923@students.mancosa.co.za
(Work)
(Home)
Contact Numbers
(Cell) 078 545 3278

Course/Intake Advanced Certificate in Management Studies / January 2022

Declaration: I hereby declare that the assignment submitted is an original piece of work produced by
myself.

Signature: Date: 27 April 2022

 Table of Contents

Case Study.................................................................................................................................. 2

Question 1................................................................................................................................... 4

Question 2................................................................................................................................... 7

References.................................................................................................................................. 9

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 Question 1

The article above states: “Anybody looking to understand how to start a successful
ecommerce business needs to understand that making money is the key to thriving and
not just surviving”. Describe SIX (6) key features that make ecommerce so diverse from
anything you have seen previously (24 marks).

E-commerce is one of the most groundbreaking upshots of the internet age. It has characteristic
features that make it stand out from traditional commerce technologies, six of which are
discussed below.
 Ubiquity. E-commerce is a ubiquitous technology because it can be accessed from
everywhere, on any device, anytime, by anyone who has an internet connection. E-
commerce makes it possible for sellers and buyers to transact independently of time and
location thanks to an assortment of online stores, marketplaces, portals, and other
platforms. The ubiquity of e-commerce has the critical advantage of reducing business
and consumer transaction costs (Laudon and Laudon, 2014:405). It saves transaction
costs for consumers because the time and effort used to find information about products
and services, compare alternatives, find what best suits one’s needs, finalize the
transaction, and obtain after-sales support via the internet are reduced. It saves
transaction costs for businesses because the overhead is reduced and the supply-chain
management is streamlined. On the other hand, the ubiquity of e-commerce multiplies
the risk of cyber fraud, theft, security breach, and various other illegal activities that
take place online. This is a reminder that the benefit of doing business via the internet,
anytime, anywhere is only as good as the security measures developed to prevent cyber
risks.

 Global reach. E-commerce technology is an opportunity for businesses to reach out to

consumers in many places across the country, regionally and globally, and therefore to
scale up revenue generation. It is also an opportunity for consumers to secure the
products, services, and experiences they want from multiple vendors within and across
the national boundaries. It is common for e-commerce sites with a global presence to
enable access to content in local languages and process transactions in local currencies.
The global reach of e-commerce is contingent on the availability of internet access and
integrated offline strategies for local pickups and deliveries in the target markets. But

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 nearly thirty years after Amazon’s founding, the reality is that e-commerce penetration
is growing fast in countries such as China, United Kingdom, and South Korea with over
one-third of the retail sales taking place over the internet, but is still at an infant stage
and unequally distributed in Africa where e-commerce orders make up less than 2% of
total retail purchases—mainly due to a die-hard digital divide, uneven access to online
payment options, limited digital confidence, and suboptimal supply-chain performance
(Constantinescu, 2020).

 Universal standards. E-commerce technology is built on one set of universal standards

which are shared by all countries. This is in contrast with traditional mass technologies
such as television and radio which differ from one country to another. The universal
technical standards of e-commerce do good to both businesses and consumers. The
costs that businesses have to pay to enter the market (market entry costs) are greatly
reduced, which prompts entry into multiple markets and segments via e-commerce,
both nationally and internationally. Indeed, the universal standards of e-commerce have
made the business practice of going global more cost-effective and time-saving than
the traditional expansion into international markets—though it is vital that a company’s
internationalization strategy via e-commerce strive to address localization challenges
such as local relevance of products, translation into local languages, and payments in
local currencies (Mensak, 2019). Similarly, the universal standards of e-commerce
reduce the time and effort required by customers to find what they want (search costs),
which makes it easier for a large audience to turn to online shopping and virtual
services—even if cyber security remains a concern for many e-commerce users and a
deterrent to many others.

 Interactivity. E-commerce platforms can allow for a two-way flow of communication

that provides virtual shoppers with a customer-centric experience. Interactive e-
commerce can be very effective in building customer relationships, improving brand
experience, and turning viewers into first-time and repeat buyers (Reed, 2019). The
opportunity for buyers to interact with sellers should be available on every page of an
e-commerce website via software applications that engage visitors in real time such as
live chats, chatbots, and voice assistants. Entering into real-time conversations with
customers and prospects is where e-commerce can bridge the gap with the way
communication would normally occur in face-to-face settings. But online interactivity
may turn into a double-edged sword, especially when it takes place on social media,

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 blogs, or other online forums open to the general public. That is why it is critical that
e-commerce sellers do their best to demonstrate to be capable of interacting with users
and customers in a timely, responsive, and emotionally-intelligent manner.

 Personalization/Customization. E-commerce technology permits a high level of

personalization and customization that cannot be reached with traditional commerce
technologies. E-commerce personalization occurs when a visitor’s experience is filled
with dynamic content that adapts automatically based on their profile, location, time
zone, language, searches, views, cart contents, purchase behaviour, and so on (Davis,
2018). Dynamic content software allows e-commerce brands to capture certain
characteristics of the users and display personalized content that is most likely to match
the user’s interest and ultimately increase e-commerce conversions. E-commerce
customization is the action performed by users who choose their preferred version of
products and services from the available set of options to suit their own needs and
interest (Davis, 2018). Product customization software allows users to view what their
customized products look like in real time, which increases e-commerce sales and
decreases returns.

 User Content Generation. E-commerce technologies allow users to generate content and
share it with fellow users and friends over the internet. User-generated content is a
powerful tool for both consumers and businesses. Consumers acquire information from
previous buyers that help them make a decision about products and services whereas
businesses are given the opportunity to learn what they should do to improve their
offerings. User reviews are so popular that nearly 95% of consumers resolve to read
them before buying online (Poetker, 2022). E-commerce brands can leverage user-
generated content to their advantage by showcasing on their websites, social media
platforms, and marketing campaigns a range of good product reviews, customer
testimonials, ratings, and referrals, as well as photos and videos created by clients. User-
generated content software is a useful tool available to e-commerce websites to
streamline the collection of content from consumers and show their target markets that
current clients are happy with their products and services.

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 Question 2
The article above further states: “The ecommerce business model unlocks value and is
the key driver of value”. Identify and explain TWO (2) types of e-commerce business
models (6 marks).

There are various forms of e-commerce, two of which are discussed below.
 Business-to-consumer (B2C) e-commerce is when a company sells goods, services, or
experiences directly to consumers over the internet. B2C e-commerce businesses
comprise “click-only” companies that operate online (Takealot) and “click-and-mortar”
firms that combine physical and online stores (Dis-Chem). Examples of B2C e-
commerce models are online retailers that sell their own product lines (Zara) or products
from a variety of brands (Makro); online intermediaries that bring buyers and sellers
together in exchange for a service fee (Travelstart); advertising-based sites that use free
content or services to appeal to a large online audience who in turn attracts online
advertising revenues (News24); social networks that provide a space for users to
interact free-of-charge with others and for advertisers to promote their products based
on a user’s profile, location, browsing habits, or preferences (TikTok); and
subscription-based content providers that charge a fee for consumers to access premium
content (Netflix).
B2C e-commerce reduces overhead costs and enables a company to reach more
customers compared to a brick-and-mortar business because what it offers is available
to everyone who is online and not limited to customers with access to the company’s
premises—with the added benefit of a more customized buying experience through
customer profiling. But there are key technological resources required for a successful
B2C e-commerce operation such as search engine optimization for your website to rise
to the top of internet search rankings and SSL-encrypted payment processing for
consumers to feel comfortable transmitting financial information over the internet
(Uzialko, 2021).

 Consumer-to-consumer (C2C) e-commerce is when individuals sell, buy, rent, auction,

or exchange goods and services directly with each other via the internet. C2C e-
commerce transactions are facilitated by digital environments (e-marketplaces) such as
BidorBuy, Airbnb, Gumtree, or OLX that may charge customers a fee for processing
transactions or listing (classified advertising)—anyone with access to the internet can

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sign up and start selling or buying on an e-marketplace (Rivera, 2018). There are also
marketplace platforms optimized for smartphones (e-commerce mobile apps) such as
OfferUp and Depop, along with gateways for multiple classifieds websites such as
CPlus Classifieds. Payment platforms such as PayPal, Google Pay, and Venmo are
available to C2C users to process payments in a safe and efficient manner
C2C e-commerce is a way for consumers to bypass retailers and wholesalers, keeping
the profits higher for the sellers and prices lower for the buyers. It is convenient for
sellers who can simply list their products and services online and wait for interested
buyers; it is convenient for buyers who do not have to shop around from one store to
another to find an item they want—they just have to log into a C2C site (Rivera, 2018).
But C2C e-commerce is not without its challenges, especially in relation to the quality
control of the items being sold or when it comes to preventing scams and the sale of
illegal goods and services.

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 References

Constantinescu, R. (2020). The Particularities of the African Ecommerce Ecosystem [online].

Available at: https://thepaypers.com/interviews/the-particularities-of-the-african-ecommerce-
ecosystem--1240977 [Accessed on 27 April 2022].

Davis, P. (2018). What is the Difference Between Personalization and Customization? [online].
Available at: https://www.towerdata.com/blog/what-is-the-difference-between-
personalization-and-customization [Accessed on 27 April 2022].

Laudon, K.C. and Laudon, J.P. (2014). Management Information Systems: Managing the
Digital Firm [pdf]. 13th Edition. Global Edition: Pearson Education. Available at:
https://repository.dinus.ac.id/docs/ajar/Kenneth_C.Laudon,Jane_P_.Laudon_-
_Management_Information_Sysrem_13th_Edition_.pdf [Accessed 27 April 2022].

Mensak, C. (2019). Three ways to make your e-commerce internationalization a success

[online]. Sana. Available at https://www.sana-commerce.com/blog/e-commerce-
internationalization/ [Accessed on 27 April 2022].

Poetker, B. (2022). User-Generated Content: (Actually) Putting Customers First [online].

Available at: https://www.g2.com/articles/user-generated-content [Accessed on 27 April
2022].

Reed, N. (2019). The Importance of Interactivity in ecommerce (and how to achieve it) [online].
Digital Doughnut. Available at: https://www.digitaldoughnut.com/articles/2019/february/the-
importance-of-interactivity-in-ecommerce [Accessed on 27 April 2022].

Rivera, A. (2018). What Is C2C? [online]. Business News Daily. Available at:
https://www.businessnewsdaily.com/5084-what-is-c2c.html [Accessed on 27 April 2022].

Uzialko, A. (2021). What Is B2C? [online]. Business News Daily. Available at:
https://www.businessnewsdaily.com/5085-what-is-b2c.html [Accessed on 27 April 2022].

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