• E-commerce at the consumer level
Online shopping (B2C transactions)
• E-commerce at the business level
Business-to-Business (B2B) transactions
Paying on web
• Bidding / Auction
Buying and selling
• The explosion in e-commerce conducting
business activities online is not only widening
consumers choice of products and services but
also creating new businesses and compelling
established businesses to develop internet
• Retail goods can be classified into two
1.Hard goods are those that can be viewed and
priced online, such as computers, clothes,
groceries, and furniture, but are then sent to
buyers by mail or truck.
2.Soft gods are those that can be download
directly from the retailers site, such as music,
software, travel, tickets and greeting cards.
1. E-commerce at the consumer level
2. E-commerce at the business level.
E-commerce at the Consumer Level
• Ten of thousands of online businesses provide to the needs
of consumers. These companies web sites provide
information about products and services, take orders,
receive payments, and provide on-the-spot customer
• Consumer oriented e-commerce web sites take many forms
and cover the range of products and services, but can be
divided into two general categories:
1. Shopping sites
2. Personal finance sites.
• Online shopping means buying a product or service
through a website.
• Another term for online shopping is B2C(business-to-
• Amazon and Buy.com are just two of the many
popular web sites where consumers can buy any
sorts of things.
• What can you buy online? The list is almost limitless-
including everything from car to appliances,
electronics to jewelry, clothes to books, fine wines to
• There are thousands of consumer web sites and each
has its own look, feel, and approach to customer
satisfaction. But effective online shopping sites share
a few essential features:
• A catalog where you can search for information
about products and services.
• A “checkout” section where you can securely pay for
the items you want to purchase.
• A customer service page, where you can contact the
merchant of assistance.
Online Banking and Finance
• Retailers are not the only businesses reaching out to
consumers over the web. No matter where you live in
the united states, there’s good chance that your local
bank has a web site where you can manage your
• If you are interested in investing, borrowing money,
buying insurance, applying for a credit card, or doing
some other task involving personal finance, you can
do that online, too.
• The term online banking refers to using a bank’s web
site to handle banking-related tasks. Individuals and
businesses alike can visit any bank’s web site and do
Create an account
Record or view transactions
• The term online finance refers to any kind of personal
financial transaction you can conduct online, other than
managing your bank accounts.
• These activities include:
Applying for loans
Applying for credit cards
Preparing tax returns and paying taxes
Doing financial research or seeking financial advice.
E-Commerce at the Business Level
• Beyond individual consumer transactions, e-commerce has
given companies an entirely different way to conduct business.
• Using powerful web sites and online databases, companies not
only sell goods to individual customers, but also track
inventory, order products, send invoices, and receive
• Using e-commerce technologies, companies are rapidly
forming online partnerships to collaborate on product designs,
sales and marketing campaigns, and more.
• By giving one another access to their private networks,
corporate partners access vital information and work together
• Although millions of consumer transactions take place each
day on the web, business-to-business transaction actually
accounts for most of the money that is spent online.
• As it name implies, a business-to-business transaction is one
that takes place between companies; consumers are not
• In fact, companies were doing business electronically long
before the rise of the web, by using private networks and
computer systems to handle transactions.
• But internet technologies have made the process easier, more
efficient, and available to virtually all businesses.
• Any financial transaction between two companies can be
considered a B2B transaction, and probably can be handled
over the internet.
o Consider some examples:
• A store orders an out-of-stock product from a distributor.
• A car manufacturer orders parts from a wide range of
• A stock broker buys shares for a client by using an electronic
• A bank requests credit information from a major credit
• Until 1998, e-commerce was slow to gain acceptance among
consumers who were concerned about security.
• Many people feared that it was not safe to provide personal or
credit card information over the internet because it was
possible for criminals to intercept data and use it, or to steal it
from unprotected web servers.
• Those fears have largely been eliminated, however, with
improved security measures and public perception of the
• It is actually very easy to make sure that you are surfing safely
and keeping your personal information secure while online,
even when you are giving credit card numbers to web
• Reputable e-commerce web sites (especially those
run by well-known companies) use sophisticated
measures to ensure that customer information cannot
fall into the hands of criminals.
• Online merchants typically protect customers by
providing secure web pages where customers can
credit card and account numbers, passwords, and
other personal information.
• To secure the data transmit to a web site, online
merchants can encode pages using secure sockets
layer (SSL) technology, which encrypts data.
• Encryption technology secures data by converting it into a
code that is unusable by anyone who does not possess a
key to the code.
• When using e-commerce site, you can determine if the
current page is secure in two ways.
1. Check the URL. If the page’s URL begins with https://, the
page is secure. The letter s indicates security measures.
2. Check your browser’s status bar. If you use Microsoft IE or
Netscape navigator, a closed padlock symbol will appear in
the browsers status bar when a secure web page is open.
Bidding (Auctions): Linking Individual
Buyers & Seller
• Today millions of buyers and sellers are linking up at online
auctions, where everything is available. There are generally
two types of auction sites:
1. Person-to-person auctions: person-to-person auctions, such
as ebay, connect buyers and sellers for a listing fee and a
commission on sold items.
2. Vendor-based auctions: vendor based auctions, such as
onsale, buy merchandise and sell it at discount. Some
auctions are specialized, such as price line, an auction site
for airline tickets and other items.