E-Commerce

Presentation By Rajesh, Sandip & Sameer

Definition :
Electronic commerce, commonly known as e-commerce or eCommerce, or e-business consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks.

Objectives After completing this lesson, you will able to:

Understand the basis of classification of e-commerce. Differentiate the types of e-commerce. List websites of the different ecommerce types.

Introduction
E-commerce is more than just buying and selling products online. Instead, it encompasses the entire online processes of developing, marketing, selling, delivering, and paying for products and services purchased by internet worked, global market places of customers, with support of worldwide network of business partners. In using the web as links between the buyers and sellers, they can use internet, extranet and intranets.

Classification of e-commerce
The classification of ecommerce is based:

who orders, the goods and services to be sold, who sold those goods and services and the nature of transactions.

Classification of e-commerce (cont)

Based on the above criteria, e-commerce are classified as; I. II. III. IV. V. Business-to-Business (B2B) e commerce Business-to-Consumer (B2C) e commerce Consumer-to-Business (C2B) e commerce Consumer-to-Consumer (C2C) e commerce Peer-to-Peer (P2P)e commerce VI. M-commerce

Classification of e-commerce (cont)

VII. Business to-Employee VIII. E-Government IX. E-Learning X. None-Business e-commerce XI. Business-to-Business-to-Customer XII. Intra-business e commerce XIII. Exchange-to-Exchange XIV. Collaborative commerce

Business-to-Business (B2B) e-commerce

It is the largest form of ecommerce In this form the buyers and sellers are both business entities and do not involve and individual consumer.

It is commonly known as EDI (Electronic Data Interchange).

According to the European model EDI Agreement Article 2.1, EDI is the electronic transfer from computer to computer, of commercial and administrative data using an agreed standard to structure an EDI message.

1.Business-to-Business (B2B) e-commerce (cont)

From the above definition; the EDI transitions are composed of: Codes and values (structured data) Standard format and pieces of texts (agreed message standards) Message to be sent between two computers (from computer to computer) by networks (by electronic means).

1.Business-to-Business (B2B) e-commerce (cont)

The companies include in the B2B ecommerce are manufacturers, wholesalers rather than retailers only. Pricing is based on quantity of orders and is often negotiable. This type of ecommerce is privately held, since only business companies can qualify as potential buyers.

Advantages of B2B e-commerce

Some advantages of B2B ecommerce are;

Direct interaction with customers.

Focused on sales promotion.

Building customer loyalty.

Scalability Savings in distribution costs

Websites that are engaged in B2B ecommerce

commodityindia.com
Indiaconstruction.com clickforsteel.com Transora.com etc.

2.Business-to-Consumer (B2C)e-commerce
In this e-commerce type, business and consumers are involved. Business sell to the public typically through catalogs utilizing shopping cart software. In Business-to Consumer (B2C) e commerce, business must develop attractive electronic market places to entice and sell products and services to the consumer.

Business-to Consumer (B2C) e-commerce transaction process

Business-to Consumer (B2C) e commerce transaction process includes;
Customer identifies a need. Searches for the product or services to satisfy the need. Selects a vendor and negotiates a price. Receives the product or services (delivery logistics, inspection and acceptance). Makes payment. Gets service and warranty claims.

Websites that are engaged in (B2C) e-commerce

Amazon.com, llbean.com, CompUSA.com, Travelocity.doc, hotels.com, chow.net, rediff.com, jaldi.com, indiatimes.com, indiaballs.com,

3. Consumer-to-Business (C2B) e-commerce

Also called demand collection model.

It enables buyers to name their own price, often binding, for a specific good or services generating demand
A consumer posts his project with a set budget online and within outs; companies review the customers requirements and bids out the project. Then the customer will review the bids and selects the company that will complete the project.

C2B e-commerce (cont)

Generally, in the C2B ecommerce, the customer requests a specific service from the business.

EXAMPLE:
Mr. Leta, an Ethiopian, needs to travel India for his personal case. He requires a flight on the first day of January and he is willing to pay Br 500 only. Here this requisition will display in C2B webs. In addition, the Ethiopian Air Lines can be interested to take him to New Delhi, even the normal trip costs more than Br 500 rather than of flying with empty seats.

Websites engaged in C2B ecommerce

razerfinish.com,
ReverseAuction.com, priceline.com, etc.

4. Consumer-to-Consumer (C2C) ecommerce

It facilitates the online transaction of goods or services between two peoples. However, there is not visible intermediary involved, but the parties cannot carry out the transactions without the platform, which is provided by the online market such as eBay. Examples: Advertisement of personal services over the internet. Selling of knowledge and experts online.

C2C e-commerce (cont)

In the C2C e-commerce, the consumer lists items for sale with commercial auction site. The participants in C2C ecommerce are unknown, not trusted parties to sell goods and services to another one. Example of C2C ecommerce web is eBay, where consumers sell their goods and services to other consumers; And PayPal (instead of purchasing goods and services directly from the unknown, entrusted seller, the buyer can send money to the PayPal. Then the PayPal notifies the seller that they will hold the money for them until the goods have been shipped and accepted by the buyer).

Websites engaged in C2C

baazee.com I

CQ.com
MSN.com

ek.com.au
careeron.com.au

bidorbuy.com
etc.

5. Peer-to-Peer (P2P) e-commerce

It is a technology in itself that helps people to directly share computer files and computer resources without having a central web server. To use this, both the peers should have to install the software so that they can communicate on the common platform. Examples: Sharing of musics, videos, and other digital files electronically

6. M-commerce
It refers to the use of mobiles devices for conducting the transactions. The mobile device holder can connect each other and can conduct the business. This is not really a type of e commerce but a mechanism in transaction. Many M-Commerce applications involve internet enabled mobile devices. If such transactions are targeted to individual, to specific location, at specific times, they are referred as location base ecommerce (L- Ecommerce).

7. Business to-Employee
This is the subset of the inter-business category in which the business organization delivers goods, services, information to individual employees. Examples: Mobile employee in field representatives (B2ME).

8. E-Government
In E-Government a government departments buys or sells goods, services or information to business (G2B) or to the individual citizens (G2C) or to other government entity (G2G).

In E-Government; intranets, extranets and the internet all are applied.

9. E-Learning
When educations, training or examination are provided online, it is called E-Learning. It is practiced in Universities and organizations, government departments. When organizations give training to their employees, it is called E-Learning.

10. None-Business e-commerce

The users of this e-commerce are academic institutions, religious institutions, social organizations, government agencies and non-for profit organizations.
Those none-business organizations use e-commerce to reduce their expenses, to improve their general operation and customer services.

11. Business-to-Business-to-Customer
In this a business provides some product or service to a client business. The client by maintaining its own customers, which can be own employees, to whom the product or service is provided with out adding any value to it. Here the client customer acts as intermediate.

12. Intra-business e-commerce

Includes all internal organizational activities that involve the exchange of goods, services or information among various units and individual in that organization. It is usually performed using intranets with in the organization (business).

13.Exchange-to-Exchange
It describes a public electronic market with many buyers and sellers. Also, it is a formal system that connects exchanges to one another.

14. Collaborative commerce:

This is the process of communicating online between individuals or groups. Examples: designing a product together using screen sharing, forecasting demand of products.

Limitations of e-Commerce
Technical Limitations Non-Technical Limitations

Non-Technical Limitations
customer fear of personal information being used wrongly privacy issues customer expectations unmet rules and regulations (ie. Jan 2004 Bill C6 - new privacy law) security and privacy vulnerability to fraud and other crimes lack of trust and user resistance fear of payment information being unsecure tactile limitations Schnieder, 3rd ed. added "many businesses face cultural and legal obstacles" legal issues outstanding such as jurisdiction legal environment has many new and conflicting laws cultural obstacles linguistic challenges

Technical Limitations
costs of a technological solution some protocols are not standardized around the world reliability for certain processes insufficient telecommunications bandwidth software tools are not fixed but constantly evolving (ie. Netscape 3,4,4.7,4.75 etc.) integrating digital and non-digital sales and production information access limitations of dial-up, cable, ISDN, wireless some vendors require certain software to show features on their pages, which is not common in the standard browser used by the majority Difficulty in integrating e-Commerce infrastructure with current organizational IT systems

CONCLUSION
The classification is based on orders in the web and the transaction partners. By this, when an individual orders to sites for selling of certain goods and services, and one company, by looking on the web lets to buy those goods and services, then this can be considered as Consumer-toBusiness (C2B) e commerce. Examples of such webs are ebay,

CONCULISION
When educations, training or examination are provided online, it is called E-Learning. And Business-to Business (B2B) e commerce is also called the EDI, which is commonly used and largest form of e commerce. In this, both the buyers and sellers are companies such as manufacturers and wholesalers

THE END
THANK YOU!!!