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					   An Overview of
Electronic Commerce
Electronic Commerce




                      E-commerce is
                      the buying and
                         selling of
                       products and
                         services
                       electronically
                          over the
                         Internet.
Business-to-Consumer
 Electronic Commerce




                In business-to-consumer
                electronic commerce
                (B2C) transactions,
                companies use the
                Internet to sell products
                and services to
                consumers and to receive
                payments.
Business-to-Business Electronic
       Commerce (B2B)




                    Business-to-business
                    electronic commerce (B2B)
                    companies use the Internet to
                    conduct routine business
                    activities with other
                    companies, including ordering
                    manufacturing parts and
                    purchasing inventories from
                    wholesalers.
Venues of E-Commerce




          The Web provides numerous business-
          to-consumer electronic commerce
          venues, which are types of Web sites
          where e-commerce transactions occur.
          Users can move from venue to venue
          on the Internet to search for, find,
          purchase, and pay for products and
          services.
Online Shopping




                Also called electronic
               shopping or e-shopping,
              online shopping is using a
             computer, modem, browser,
              and the Internet to locate,
               examine, purchase, sell,
                and pay for products.
              Advantages of
             Online Shopping


Online shopping offers several distinct advantages
        over traditional shopping methods.


        Convenience      Greater Selection


         Increased Product Information


        Ease of Comparison Shopping.
Online Shopping Venues




            Consumers can visit a number of
            online shopping venues, including
            online stores, online superstores,
            and online shopping malls.
Online Store



               An online
               store, also
               called a virtual
               store, is a
               seller’s Web
               site where
               customers can
               view,
               purchase, and
               pay for
               products and
               services.
Online Superstore




          An online superstore offers a
          greater variety of products and
          contains departments that house
          similar kinds of products in one
          area.
Online Shopping Mall




                       An online
                       shopping mall
                       connects its
                       stores by
                       hyperlinks on the
                       mall’s home
                       page.
 Guidelines for Shopping Online


In evaluating online shopping sites, a shopper
should look for features such as:


  Clearly stated selling and security terms

         Excellent customer service

          Ease of making purchases

        Satisfactory product information
Assistance for E-Commerce




 Some helps for online shoppers include online
 catalogs and shopping agents, or bots.
         Online Services

The Web now offers numerous types of online services.
Some are free, but most require the user to subscribe
and pay a fee.


    Fashion         Car-buying Services

   Health-related Information Services

Home-buying Services          Entertainment

Financial Services (banking and investing)

               Travel Services
            Peer-To-Peer
         Online Transactions




                      Web
                      Site

 Buyer                                     Seller




Peer-to-peer business-to-consumer transactions are
those that take place between individuals, usually at a
common forum-type Web site sponsored by a business.
Online Auctions




           A popular peer-to-peer
           transaction activity is online
           auctions, sites such as eBay
           or uBid where individuals
           can sell, bid on, or purchase
           items from other individuals
           around the world.
         Digital Music Distribution




User Uploads Music                                      User Downloads Music

         An early and popular type of peer-to-peer transaction
         was digital music distribution. Due to copyright
         infringement issues, this activity has evolved to a fee-
         based service through such companies as Apple
         Computer.
  Transaction Payment Methods




Electronic funds transfer (EFT) is a general term that refers to any
transfer of money over the Internet.
         Current Transaction Methods




Some current transaction methods include check or
credit card by phone, credit accounts, credit cards,
smart cards, digital cash, electronic wallets, micro
payments, and electronic (digital) signatures.
Transaction Security and Encryption




 Many shopping sites protect online transactions by
 encrypting information transmitted over the Internet.
              Encryption




Encryption is the process of converting readable
information, called plaintext, into unreadable
information, called ciphertext, to prevent unauthorized
access and usage.
Establishing an E-tailer Web Site


  Some important considerations include:


     Methods for processing payments

      Hardware and software needs
    Advertising and promoting the site.

            Managing the site

    Attractive and effective site design
           Business-to-Business
           Electronic Commerce




In B2B electronic commerce, businesses use computers, networks, the
Internet, and e-commerce technologies to conduct a variety of routine
business activities with other companies.
Business-to-Business Electronic
    Commerce Transaction




 In a business-to-business electronic
 commerce transaction, both the seller and
 buyer are business organizations.
     B2B E-Commerce

With B2B e-commerce companies can:


           Order Supplies

Enhance collaboration among employees

   Improve customer response time

        Coordinate operations

          Share information
B2B E-Commerce




                 Order
                 supplies
       B2B E-Commerce




Enhance collaboration among employees
B2B E-Commerce




 Improve customer
   response time
B2B E-Commerce




Process financial transactions.
                   B2B E-Commerce
Speed up product
  development




                                    Coordinate operations



 Conduct numerous
 other business
 activities
                        On the Horizon

Enhanced Web Phone Technology
  New technologies will allow users to perform all types of Internet activities
  on their cell phones or other handheld devices. In the future, a single chip
  embedded in a cell phone’s SIM (subscriber information module) will be all
  users will need to identify themselves, replacing credit cards, identity cards,
  PIN numbers, and even passports.



Improved Capacity and Security in Web Servers
   Advances in Internet and Web server capabilities will allow these
   technologies to handle many more online users concurrently. Additionally,
   servers will provide greater security, including improved firewall, virus, and
   hacker protection.
                     On the Horizon

Online Research and Development
    Companies will speed up research and development by tapping into the
    power of the Internet to solicit consumer feedback online, an important
    aspect in measuring consumer interest in new products.


Machine-To-Machine (M2M) Applications
   Businesses in the future will use machine-to-machine e-commerce,
   or M2M, to automate many routine business transactions.


Expanded Use of Radio-Frequency Identification (RFID) Technology
   Wal-Mart and other companies plan to implement RFID to track shipments
   through the supply chain. RFID uses an antenna and chip containing an
   electronic product code, which is embedded in a shipping pallet or cargo
   container. Electronic readers activate the chip, which then sends or
   receives information. Container break-ins can be recorded.

				
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