Unit I : E-commerce

Unit I: Electronic Commerce

 The Digital Revolution and Society, The Digital and Social
Worlds - The Digital Economy,
 The Digital Enterprise, Virtual Communities, Online
Communities, Defining Electronic Commerce, Emerging E-
Commerce Platforms.
 E-Business, Electronic Markets and Networks; The Content and
Framework of E-Commerce, Classification of E-Commerce by t
he Nature of the Transactions and the Relationships Among
Participants,
 E-Commerce Business Models, Integrating the Marketplace
with the Marketspace, Web 2.0. Drivers, Benefits and
Limitations of E-Commerce,
 Impact of E-Commerce on business, government, customers,
citizens and society
Digital Economy
 There are three main components of this economy,
namely,
 e-business
 e-business infrastructure
 E- commerce
 Virtual Communities
 Online Communities
Merits of Digital Economy

 Promotes Use of the Internet

 Rise in E-Commerce
 Digital Goods and Services
 Transparency
Demerits of Digital Economy:
 Loss in Employment
 Lack of Experts
 Heavy Investment
Includes:
 Online business to business transactions
 Online business to consumer transactions
 Digital delivery of products and services
 Online merchandising
 Automated telephone transactions eg phone
banking
 EFTPOS and other automated transfer systems
Emerging E-Commerce Platforms.
 what is an “e-commerce platform”?
 “An e-commerce platform is a piece of software that
allows you to build an online store and run a business
online. It gives you the tools to create and manage your
site including products and day-to-day operations.
Most if not all e-commerce builders use drag and drop
functions.”
Emerging trends in E-commerce
# Dropshipping:
 It involves acting as the middleman between the
manufacturer or supplier and the customer.
You process the purchase, but the product gets shipped
directly to the buyer without you actually handling the
physical product.
 This platform connects you with verified suppliers from all
over the world, making it much easier to find products to
sell.
 The best part is that you can ship the product straight from
the warehouse to the customer in a single click.
 # Multi-Channel Selling
 To grow your business as online merchant, you need to
make yourself available across all of the channels that
your shoppers use. Aside from your own website, this
could be on social media and brick-and-mortar stores
as well as other online stores.
 # Smarter Payment Processing
 # Omni-Channel Personalization: Omnichannel
personalization is the act of tailoring an experience or
communication in one channel based on information a
company has learned about an individual from multiple
channels.
 # Custom Packaging
E-Business
 Electronic Markets and Networks :
 Ex. BSE, NSE,
 WEB2.0
Web 2.0
 Amazon.com was also a leader in adopting user-
created content. One of the appeals to shopping at
Amazon’s site was the inclusion of amateur book
reviews, with users being able to leave personal
perspectives and interact with other reviewers.

 An even more successful business example of user-

created content came from electronic games .
Classification of Ecommerce by
Nature of Transaction
 Business-to-Business (B2B)

 B2B e-commerce can be simply defined as the

commerce between companies
 In Business-to-Business type of electronic
commerce system, companies do business with
each other.
 Business-to-Consumer(B2C).
C2C (Consumer-to-Consumer)
 The C2C business model helps us to sell our assets or
properties like a car, house, bike, electronics etc via
online to other consumers.
 Ex. OLX, Quickr etc
C2B (Consumer-to-Business)
 A consumer to the business model is a type of
commerce where a consumer or end user provides a
product or service to an organization.
 It is the reverse model of the B2C
 Ex. freelancer, fiverr etc
B2A (Business-to-Administration)

 Also referred as the business to government (B2G)

commerce
 in this model, the businesses and government
agencies (administration) use central websites to
exchange information and do business with each
other more efficiently than they usually can off the
web
 The B2G business network provides a platform to
businesses to bid on government opportunities such as
auctions, tenders and application submission etc.
C2A (Consumer-to-Administration)

 consumer to government e-commerce model

helps consumers to request information or post
various feedbacks regarding public sectors
directly to the government authorities or
administration.
 Ex. making electricity bill payments through the
website government, making payment of taxes,
payment of health insurance etc
Drivers of Ecommerce –Economic
forces
 Internet rates dropped
 Easy payment options
 The cost of installing and maintaining a website is
much cheaper than owning a physical store. This
motivates the growth of e-commerce
 Third-party logistics
 E-commerce generates greater profits due to less
human intervention, lower overhead cost, few clerical
errors and more efficiency.
 Growth of Big Data
Drivers of Ecommerce –
Technological forces
 Smartphones
 Increase in competition and the rise in consumer
power, ‘globalization wave’ have forced the business
organizations to penetrate into internet world.
 Big Data
 Easy and safe electronic payments
Drivers of Ecommerce –Market
forces
 E-commerce enables customers to make product
comparison, place orders, track orders and make
payments at ease. Due to convenience, customers
prefer to purchase their desired goods or services over
internet in the online marketplace.
 E-commerce also allows the customers to choose and
order products according to their personal and unique
specifications. It paves way for mass customization
 The great variety of commodities available online and
reliable payment methods are regarded as contributors
to the increase of e-business
E- Commerce Benefits
 New Customers
 Lower Setup and Maintenance Costs
 Globally Acceptable
 organization can expand their market to national and
international markets with minimum capital investment
 helps organization to provide better customer services
 helps organization to reduce the cost by digitizing the
information. • improves the brand image of the company
 helps to simplify the business processes and make them
faster and efficient
 24x7 support
 provides user more options and quicker delivery of
products
 provides user more options to compare and select the
cheaper and better option
 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 buy
 increases competition among the organizations and as
result organizations provides substantial discounts to
customers
 Customers need not to travel to shop a product thus
less traffic on road and low air pollution
 E-Commerce helps reducing cost of products so less
affluent people can also afford the products
 E-Commerce has enabled access to services and
products to rural areas as well which are otherwise not
available to them
 E-Commerce helps government to deliver public
services like health care, education, social services at
reduced cost
DISADVANTAGES TO CUSTOMERS
 Delay in receiving goods
 Chances of product loss
 Delivery to wrong address
 Quality
 Cannot touch or feel the product until delivered.
 Hidden costs
 Extra handling cost in case of international purchase