4. WHAT IS E-COMMERCE?
• E-Commerce can be defined as …
• It is commonly known as electronic marketing.
• Commerce is a division of trade or production which deals with the
exchange of goods and services from producer to final consumer.
• E-commerce (electronic commerce or EC) is the buying and selling of goods
and services, or the transmitting of funds or data, over an electronic network,
primarily the internet.
• These business transactions occur either as business-to-business, business-to-
consumer, consumer-to-consumer or consumer-to-business. The terms e-
commerce and e-business are often used interchangeably.
6. HISTORY OF E-COMMERCE
• History of ecommerce dates back to the invention of the very old notion of "sell and
buy", electricity, cables, computers, modems, and the Internet.
• Ecommerce became possible in 1991 when the Internet was opened to commercial
use. Since that date thousands of businesses have taken up residence at web sites.
• At first, the term ecommerce meant the process of execution of commercial
transactions electronically with the help of the leading technologies such as Electronic
Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an
opportunity for users to exchange business information and do electronic transactions.
The ability to use these technologies appeared in the late 1970s and allowed business
companies and organizations to send commercial documentation electronically.
• Although the Internet began to advance in popularity among the general public in
1994, it took approximately four years to develop the security protocols (for example,
HTTP) and DSL which allowed rapid access and a persistent connection to the
Internet. In 2000 a great number of business companies in the United States and
Western Europe represented their services in the World Wide Web.
8. USAGES OF E-COMMERCE:
• Faster buying/selling procedure, as well as easy to find products.
• Buying/selling 24/7.
• More reach to customers, there is no theoretical geographic limitations.
• Low operational costs and better quality of services.
• No need of physical company set-ups.
• Easy to start and manage a business.
• Customers can easily select products from different providers without
moving around physically.
• Access to the global market.
10. THE PROCESS OF E-COMMERCE
• A consumer uses Web browser to connect to the home page of a
merchant's Web site on the Internet.
• The consumer browses the catalog of products featured on the site
and selects items to purchase. The selected items are placed in the
electronic equivalent of a shopping cart.
• When the consumer is ready to complete the purchase of selected
items, he provides a bill-to and ship-to address for purchase and
11. E-COMMERCE VS. E-BUSINESS
• Ecommerce involves commercial transactions done over internet.
• Ebusiness is conduct of business processes on the internet.
• Ecommerce is use of electronic transmission medium that caters for buying
and selling of products and services.
• In addition, Ebusiness also includes the exchange of information directly
related to buying and selling of products.
• Example- Buying of pen drive from Amazon.com is considered Ecommerce.
• Example- Using of Internet by Dell, Amazon for maintaing business
processes like Online customer support, email marketing, supply chain
13. DIFFERENT TYPES OF E-COMMERCE
• Business-to-business (B2B)
• Business-to-Consumer (B2C)
• Business-to-government (B2G)
• Consumer-to-consumer (C2C)
• Mobile commerce (m-commerce)
14. WHAT IS B2B E-COMMERCE?
• B2B e-commerce is simply defined as ecommerce between companies. About
80% of e-commerce is of this type.
• Intel selling microprocessor to Dell
• Heinz selling ketchup to Mc Donald's.
15. WHAT IS B2C ECOMMERCE ?
• Business-to-consumer e-commerce, or commerce between companies and
consumers, involves customers gathering information; purchasing physical
goods or receiving products over an electronic network.
• Dell selling me a laptop.
16. WHAT IS B2G E-COMMERCE?
• Business-to-government e-commerce or B2G is generally defined as
commerce between companies and the public sector. It refers to the use of the
Internet for public procurement, licensing procedures, and other government-
• Business pay taxes, file reports, or sell goods and services to Govt.
17. WHAT IS C2C E-COMMERCE?
• Consumer-to-consumer e-commerce or C2C is simply commerce between
private individuals or consumers.
• Mary buying an iPod from Tom on eBay
• Me selling a car to my neighbour.
18. WHAT IS M-COMMERCE?
• M-commerce (mobile commerce) is the buying and selling of goods and services
through wireless technology-i.e., handheld devices such as cellular telephones
• Mobile Ticketing
• Information Services
• Mobile Banking.
19. SELLING ON THE WEB
• Selling goods and services
• Catalogs on the Web (e.g., Dell, LLBean)
• Digital content (LexisNexis, mp3 sites?)
• Advertising supported
• Make $ via advertising (like TV)
• Difficult to measure, gauge support, attract repeat visitors
• Examples: Yahoo, news sites, other portals
20. DISADVANTAGES OF E-COMMERCE
• Unable to examine products personally
• Not everyone is connected to the Internet
• There is the possibility of credit card number theft
Mechanical failures can cause unpredictable effects on the total processes.