INTRODUCTION TO BUSINESS ORGANIZATION

1. E-commerce
Course: BBA I
Subject : Introduction to Business Organization
Unit: 5

2. E-Commerce
• A type of business model which enables a
firm or an individual to transact online.
• Buying and selling of products or services is
conducted over electronic systems such as the
Internet.

3. What is e-commerce?
Includes:
• Online business to business transactions
• Online business to consumer transactions
• Digital delivery of products and services
• Automated telephone transactions eg phone
banking
• Automated transfer systems
• Online marketing
• Electronic data interchange
• Data collection

4. Types of E-commerce
• B2B (Business to Business):
– E-commerce between
companies
– 80% of e-commerce are B2B
(wikipedia)
• B2C (Business to consumers)
– Between companies and
consumers
– 2nd largest form of e-
commerce
– Information gathering
• B2G (Business to government)
– Between companies and
public sector
• C2C (Consumer to consumer)
– Eg. Olx and ebay
Distribution channel:
• Pure-Click companies are those that have launched a website
without any previous existence as a firm.
• Bricks-and-Clicks companies are those existing companies that
have added an online site for e-commerce.

5. Different types of E-Commerce
Business
(organization)
Customer
(individual)
Business
(organization)
Customer
(individual)
B2C
(e.g Amazon)
C2B
(e.g Priceline)
C2C
(e.g eBay)
B2B
(e.g TPN)

6. Advantages
• You can buy products at anytime.
• You can save money by not travelling.
• You can shop from your own home.
• There are no heavy bags to carry.
• You don’t have to deal with crowds.
• You can get discounts on prices.
• You can access variety of products
• Saves time

7. Disadvantages
• Security concerns with peoples personal details which includes
credit card details.
• The quality of the product may not be the same as in the shop.
• The appearance of the product on the website might be
different to the product shown that the customers receives.
• The shop might not send the product you ordered.
• It can be expensive to return the goods.
• You need to be present at home to receive the product.
• Consequences on breach of the contract of sale.
• Problem in storing electronic data and preventing alteration.
• Identity and capacity of seller or buyer
• Problem in understanding terms and conditions

8. References
1. Fundamentals of Business Organization and
Management by Y.K.Bhushan- Sultan Chand
publications
2. Principles & Practices Of Management by L M
Prasad – Himalaya Publishing House

9. Thank You