E-commerce - PowerPoint by noorbaduk

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   Meaning
   E-commerce vs. e- business
   Categories of e-commerce
   E-commerce technology
   E-commerce process
   E-commerce success factors
   Developing a successful e-commerce
   E-commerce marketplaces,
   EDI.
   It encompasses the entire online process
    of developing, marketing, delivering,
   and paying for products and services
    transacted on internet worked , global
    marketplaces of customers,
   with the support of a worldwide network
    of business partners.

   In short E-commerce is buying and selling
    product through online.
E-commerce VS E-business
   E-business: is the use of Internet and
    other networks and IT
        to support e-commerce,
       enterprise communication and collaboration
        and web enabled business process both
   with in an Internet worked enterprise and
    with its customers and business
Categories of E-commerce:

      3 basic categories of E commerce.They
         i. Business to consumer
         ii. Business to business
         iii. Consumer to consumer
   Business to consumer: Business
    develops electronic marketplaces to
    entice and sell products and service
    to consumers. Such as
    target.com.au, Amazon.com.au

                               Books
                                Movies, Music & Games
   Hello. Sign in to get   
                               Digital Downloads
    personalized               Computers & Office
    recommendations.           Electronics
    New customer? Start        Home & Garden
                                Grocery, Health & Beauty
    here.                   
                               Toys, Kids & Baby
   Save on all your           Apparel, Shoes & Jewelry
    holiday needs              Sports & Outdoors
                               Tools, Auto & Industrial
   Decorate, entertain,
    and winterize

            Information for:
            •Small Business
            •Service Provider

            Help Your Branch Reach
            Its Potential
            Update your branch with the
            latest technology innovations
            and services.
            Learn More
Categories of E-commerce

c. Consumer to consumer: Virtual
 store fronts where consumers can
 buy and sell with each other. Such
 as ebay.com
E-bay contd
    Shop your Favorite Categories in e-bay

   Antiques                           Electronics
    Art                                 Entertainment Memorabilia
                                        Gift Certificates
                                        Health & Beauty
    Books                               Home & Garden
    Business & Industrial               Jewelry & Watches
    Cameras & Photo                     Music
    Cars, Boats, Vehicles & Parts       Musical Instruments
    Cell Phones & PDAs                  Pottery & Glass
    Clothing, Shoes & Accessories       Real Estate
                                        Specialty Services
    Coins & Paper Money
                                        Sporting Goods
    Collectibles                        Sports Mem, Cards & Fan Shop
    Computers & Networking              Stamps
    Crafts                              Tickets
    Dolls & Bears                       Toys & Hobbies
    DVDs & Movies                       Travel
                                        Video Games
                                        Everything Else
                                        Giving Works
                                        World of Good
E-bay contd
Electronic commerce
In short most information
 technologies and internet
 technologies are involved in
 electronic commerce system.
e-commerce process
    There are nine key components of an e-
    commerce process. They are:
    i.      Access control and security
    ii.     Profiling and personalizing
    iii.    Search mgt
    iv.     Content mgt
    v.      Catalog mgt
    vi.     Workflow mgt
    vii.    Event notification
    viii.   Collaboration
    ix.     Web payment process
E-commerce process contd.
Access control and
    Process must establish mutual trust
     and secure access between the
     parties by
        authenticating users,
        authorizing access and
        enforcing security features.
    Like user name and password,
     encryption, etc
Profiling and personalizing:

    profiling process gathers data on users
     and their website behavior and choices
    and build electronic profiles of their
     characteristics and preferences.
    Users’ profiles are developed by
         user registration,
         cookies files and
         website behavior tracking software.
Search mgt.:
       Search techniques enable customers to
        find specific product or service they
        want to evaluate or buy.
       Search process may provide
         content based i.e. product description or
          by parameters (above, bellow or between a
          range of values for multiple properties of a
Content and catalog mgt:
   It helps e-commerce companies
    develop, generate, deliver, update
   and archive text data and
    multimedia information at e-
    commerce site.
Workflow mgt:
    Workflow system ensures that
    proper transactions, decisions and
    work activities are performed,
    and correct data and documents
    are routed to the right employees
    customers, suppliers and other
    business stakeholders.
Event notification:
   This software notifies all
    stakeholders (customers, suppliers,
    employees) about all events that
    might affect their status in a
   It uses electronic messaging i.e.
    e-mail, fax communication.
Collaboration and
The process supports the vital collaboration
   arrangements and trading services
  needed by customers, suppliers and
   other stakeholders
  to accomplish e-commerce transactions.
  It is done by e-mail, chat systems and
   discussion group.
 E-commerce Payment
 h.   Most e –commerce system depends on
      credit card payment process.

     Besides these EFT (electronic fund
      transfer), micro payment system like
      cyber gold, Q-pass are also present in e
E commerce process
Payment process follows three steps.
     They are
i. Shopping cart: Customer selects
     products from website catalog
     display and put them temporarily in
     a virtual shopping basket.
ii. Payment method
iii. Payment verification
Desirable Shopping Cart
   You should strongly consider the
    following extra features when
    choosing your shopping cart.
     Upload product database or
      spreadsheet files
     Images of products

     Real-time credit card clearing and
     Customer order status tracking
        Locating a Shopping Cart

    the best solution is to select or move to
    a hosting service with a built-in
    shopping cart. Then, just follow the hosting
    service's directions for loading your cart.
   Commonly used shopping carts with large
    user bases include:
       Zen Cart
       OScommerce
       Miva Merchant
Processing Credit Card
   Using Existing Systems
   The easiest method of processing credit
    card payments for many small businesses
    is to process payments using their
    existing merchant accounts.

   Credit card information from the online
    shopping cart is cleared manually using
    existing VeriFone hardware or software
Automating Payments

   The second option is to hire a company to
    process just the online credit card payments.

   These companies usually charge a 4-5%
    transaction fee and have a minimum monthly
    charge that ranges from $20 to $50.

   This method is ideal for existing businesses with
    a fairly large and regular volume of sales.
   For an average fee of 9%, these companies will clear the
    credit card transaction using their merchant accounts and
    cut you a check for the transaction minus the transaction
    fee. Payments are either deposited in your credit account
    or checks are cut and mailed.
       CCNow –
       ClickBank
       iFulfill –
       NetBanx –
       PayPal
       Verotel –
       Verza –
How customers pay

  •Customers shop on your
  site and click the payment
  •They pay on secure PayPal
  •And return to your site
  after payment
E-commerce       success factors

Key success factors are as follows
i.   Selection & Value
ii. Performance & Service
iii. Look & Feel
iv. Advertising & Incentive
v. Personal attention
vi. Community relationship
vii. Security & Reliability
 Selection and value: Attractive
  product selection, competitive price,
  satisfaction guarantees and
  customer support after sale.
 Performance and service: Fast,
  easy navigation shopping and
  purchasing and prompt shipping and
E-commerce     success factors

 c Look and feel: Attractive web
  storefronts, website shopping areas,
  multimedia product catalog pages
  and shopping features.
 d. Advertising and incentive:
  Targeted web pages advertising e-
  mail promotions, discounts and
  specific offer.
      E-commerce       success factors

   e. Personal attention: personal web pages,
    personalized product recommendations, web
    advertising, and e-mail notice.
   f. Community relationship: Virtual
    communities of customers, suppliers, company
    representative, chat rooms.
   g. Security and reliability: security of
    customer information and website transaction,
    trustworthy product information and reliable
    order fulfillment.
    Web store requirement

   It can be explained by 3 stages. They are
    i.     Developing a web store
    ii.    Serving the customer
    iii.   Managing a web store
Web store requirement

a. Developing   a web store: It
  consists of 2 steps
 i) Build: website design, Web
 ii) Market: Web page advertising, E-
  mail promotions, search engine
 Web store requirement

b. Serving   the customers:
i) Serve: by personalized web page, dynamic
   multimedia catalog, catalog search engine,
   integrated shopping cart.
ii)Transact: Flexible order processing, credit
   card processing, shipping and tax
   calculation and e-mail order notification.
iii) Support: by online help, discussion groups
   and chatting and link to related sites.
Web store requirement

c.   Managing a web store: it consists of 3
    i) Manage: By website usages statistics,
     sales and inventory report and customer
     account management.
    ii) Operate: 24*7 website hosting, online
     technology support, scaleable capacity
     and redundant server and power.
Web store requirement

 iii) Protect: By user password
  protection, encrypted order
 Encrypted website administration
  and network fire wall and security
E-commerce market
 5 major types of E-commerce market
  places. They are as follows;
 a.One to many: Sell side market places.
  One major supplier and many buyers. i.e
  cisco.com, dell.com
 b.Many to one: buy side market place. It
  attracts many suppliers. ie ge.com
E-commerce market
   c.Some to many: Distribution market
    places. Major suppliers combine their
    product catalog and attract many buyers.
    ie works.com
   d.Many to some: procurement market
    places. Many buyers show their
    purchasing catalog to attract suppliers.
   e.Many to many: It is auction market.
    Such as ebay.com
EDI: Electronic data interchange

    EDI involves the electronic exchange of
    business transaction documents over the
    Internet and other networks

    between supply chains trading partner
    (organizations and their trading partner
    and supplier).
   EDI is an example of the almost
    complete automation of an e-
    commerce supply chain process.
Clicks and bricks in e-
 Bridges the physical and virtual
 Benefits and drawbacks of
  separation and integration
 Separation ensures
     Greater focus
     More flexibility
     Access to venture funding
Clicks and Bricks
   Integration ensures
     Established brand
     Shared information

     Distribution efficiency

     Purchasing leverage

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