INTRODUCTION TO E-COMMERCE

IS110 – Introduction to Web Design and E-commerce

Ms. Aileen P. de Leon, MIT, MOS

E-COMMERCE
It means shopping on the part of
the internet. It also includes many
other activities such as businesses
trading with other businesses and
internal processes that companies
use to support their buying, selling, hiring, planning,
and other activities.
It is a subset of e-business, is the purchasing, selling,
and exchanging of goods and services over computer
networks (such as the Internet) through which transactions
or terms of sale are performed electronically.
E-COMMERCE
 It refers to a financial business
transaction that occurs over an
electronic network.

 It allows consumers to
electronically exchange goods and
services with no barriers of time
or distance.
CATEGORIES OF E-COMMERCE
B2B (Business-to-Business)
Companies doing business with each other
such as manufacturers selling to
distributors and wholesalers selling to
retailers. Pricing is
based on quantity
of order and is often
negotiable.
B2C (Business-to-Consumer)
Businesses selling to the general public
typically through catalogs utilizing shopping cart
software. By dollar volume, B2B takes the
prize, however B2C is really what the average
Joe has in mind with regards to ecommerce as
a whole.
C2B (Consumer-to-Business)
A consumer posts his project with a set
budget online and within hours companies review
the consumer's requirements and bid on the
project. The consumer reviews the bids and selects
the company that will complete the
project. Elance empowers
consumers around the world by
providing the meeting ground
and platform for such
transactions.
C2C (Consumer-to-Consumer)
There are many sites offering free classifieds,
auctions, and forums where individuals can buy and
sell thanks to online payment systems like PayPal
where people can send and receive money online
with ease. eBay's auction service is a great
example of where person-to-person transactions
take place everyday since 1995.
Other Forms of E-commerce

Business-to-Employee

Government-to-Government

Government-to-Employee

Government-to-Business
ROLE OF E-COMMERCE
 Reduce transaction cost by improving
information flows and increasing
coordination of actions to reduce
uncertainty.

 Can make networks.

 Improvement of existing markets and

the creation of completely new markets.
TRANSACTIONS
- Is an exchange of value, such as a
purchase, sale, or the conversion of raw
materials into a finished product.
BUSINESS MODEL
- Is a set of processes that combine to yield
a profit.
MERCHANDISING
- This is the combination of store design,
layout, and product display knowledge.
COMMODITY ITEM
- Is a product or service that is hard to
distinguish from the same products or
services provided by other sellers.
SHIPPING PROFILE
- Is the collection of attributes that affect how
easily that product can be packaged and
delivered.
VIRTUAL COMMUNITY
- Is a gathering of people who share a
common interest, but instead of this
gathering occurring in the physical world, it
takes place on the internet.
ADVANTAGES OF E-COMMERCE
• Global market all day

• Can access simply and browse naturally,

with no technology-related difficulties 

• Customers can compare prices easily

• Save time and money finding and

purchasing goods
• Meet the consumer’s
purchasing needs
within the framework
of a satisfying process
ADVANTAGES OF E-COMMERCE
• Feedback can be immediate

• Changing information can be available

quickly

• Ability to gather customer information,

analyze, and react it

• New and traditional approaches to

generating revenue

• Manufactures can buy and sell directly,

avoiding the cost of the middleman
ADVANTAGES OF E-COMMERCE
• Distribution costs for information is
reduced or eliminated

• Options to create a paperless environment

• Increased Access

• Convenience

• Expansion
DISADVANTAGES OF E-COMMERCE

• Taxes

• Security
 INTERNATIONAL NATURE OF E-COMMERCE
Trust Issues Language Culture
 Importance to  “Think Globally,  Business
establish a trusting Act Locally” partners ideally
relationship with  Provide local have a common
the customer language version legal structure for
or regional dialect resolving disputes.
 Spanish,  The brand
What Brand? conveys some
German,
Japanese, expectations about
Chinese, Italian, how the company
French, Korean, will behave.
Portuguese,
Dutch, Russian,
Swedish
On top of the international issues is INFRASTRUCTURE ISSUES
TERMINOLOGIES
COMPUTER NETWORK
- It is any technology that allows
people to connect computers to
each other.
INTERNET
- It is a large system of
interconnected computer
networks that spans the globe.
WORLD WIDE WEB
- It is a subset of computers on the internet
that are connected to one another in a
specific way that makes them and their
contents easily accessible to each other.
INTERNET SERVICE PROVIDER
- Sometimes referred to as an Internet access provider
(IAP)
- It is a company that offers its customers access to the internet
The ISP connects to its customers using a data transmission
technology appropriate for delivering internet protocol packets or
frames, such as dial-up, DSL, cable modem, wireless or
dedicated high-speed interconnects.

WEB SERVER
- It is a computer that stores files written in
the hypertext markup language and lets
other computers connect to it and read
these files. These are Hypertext servers.
DOMAIN NAMES
- These are the set of words that are assigned to specific
IP addresses.
General Top-level Domain Names Country Domain Names
.au – Australia
.com – Commercial
.ca – Canada
.edu – Educational Institution
.de – Germany
.gov – Government agencies
.fi – Finland
.mil – Military agencies
.fr – France
.net – General use
.jp – Japan
.org – Not-for-Profit organizations
.se – Sweden
.biz – Businesses
.uk – United Kingdom
.info – General Use
.ph - Philippines
.name – Individual People
.pro – Professionals
ELECTRONIC MAIL
- Mail that is sent across the internet must also be
formatted according to a common set of rules. E-mail
Server is devoted in handling emails.
Examples: Microsoft Outlook, Mozilla Thunderbird,
Netscape Messenger, Pegasus Mail, Qualcomm Eudora

HYPERTEXT TRANSFER PROTOCOL(HTTP)

- Set of rules for delivering web page files over the
internet.
UNIFORM RESOURCE LOCATOR(URL)
- The combination of protocol name and the domain
name.
Example: http://www.example.com/
SIMPLE MAIL TRANSFER PROTOCOL(SMTP)
- Specifies the format of a mail message and describes
how mail is to be administered on the e-mail server and
transmitted on the internet.
POST OFFICE PROTOCOL(POP)
- An email client program running on a user’s computer
can request mail from the organization’s e-mail server.

- A POP message can tell the email server to send mail

to the user’s computer and delete it from the email
server; send mail to the user’s computer and not to
delete it; or simply ask whether new mail has arrived.
SPAM
- An unsolicited commercial email; electronic junk mail
Example: Solicitations, Advertisements, E-mail Chain Letters
WORLD WIDE WEB CONSORTIUM
- A not-for-profit group that maintains standards for the
web.
HYPERTEXT MARKUP LANGUAGE(HTML)
- written in the form of HTML elements consisting of "tags"
surrounded by angle brackets (like <html>) within the web
page content. HTML tags normally come in pairs like <b>
and </b>. The first tag in a pair is the start tag, the
second tag is the end tag (they are also called opening
tags and closing tags).

WEB PAGE
- is a document or information resource that is suitable for
the WWW and can be accessed through a web browser
and displayed on a monitor or mobile device.
WEBSITE
- is a collection of related web pages, images, videos or
other digital assets that are addressed relative to a
common URL, often consisting of only the domain name,
or the IP address, and the root path ('/') in an IP-based
network.