What is E-Commerce??

• It is commonly known as electronic marketing

• It consist of buying and selling goods and services over
an electronic system such as the internet
• E-commerce is the purchasing , selling & exchanging goods
and services over computer network or internet through
which transactions or terms of sale are performed
electronically
DEFINITION:
Sharing business information, maintaining business
relationships and conducting business transactions using
computers connected to a telecommunication network is called
E-Commerce.
 E-commerce vs. E-business:
• As with e-commerce, e-business (electronic business) also has
a number of different definitions and is used in a number of
different contexts. One of the first to use the term was IBM, in
October 1997, when it launched a campaign built around e-
business. Today, major corporations are rethinking their
businesses in terms of the Internet and its new culture and
capabilities and this is what some see as e-business.
• E-business is the conduct of business on the Internet, not only
buying and selling but also servicing customers and
collaborating with business partners. E-business includes
customer service (e-service) and intra-business tasks. E-
business is the transformation of key business processes
through the use of Internet technologies. An e-business is a
company that can adapt to constant and continual change.

E-commerce:
E-commerce include commercial
transactions involving an exchange of value across
organizational boundaries
 Contents
• What is E-Commerce
• E-Commerce vs. E-business
• Process
• Models of E-Commerce
• Advantages
• Disadvantages
• Comparison
Traditional vs. E- Commerce
• Conclusion
• References
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, she provides a bill-to and
ship-to address for purchase and delivery.
• When the credit card number is validated and the
order is completed at the Commerce Server site, the
merchant's site displays a receipt confirming the
Customer’s purchase.

• The Commerce Server site then forwards the order to

a Processing Network for payment processing and
fulfilment.
Different models of E-commerce:
• Business-to-business (B2B)
• Business-to-Consumer (B2C)
• Business-to-government (B2G)
• Consumer-to-consumer (C2C)
• Government to consumer (G2C)
• Government-to-business (G2B)
What is B2B e-commerce?
B2B e-commerce is simply defined as ecommerce
between companies.

Examples:
Intel selling microprocessor to Dell
Heinz selling ketchup to Mc-Donald
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.

Example:
Dell selling me a laptop.
 What is B2G ecommerce?
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 related operations

Example:
Business pay taxes, file reports, or sell goods and services
to Govt. agencies.
What is C2C ecommerce?
Consumer-to-consumer e-commerce
or C2C is simply commerce between private
individuals or consumers.

Example:
Me selling a car to my neighbor.
G2C E-commerce:
• This Model is also a part of e-governance.
• The objective of this model is to provide good and
Effective services to each citizen.
• The Government provides the following facilities to
the citizens through website.
• Information of all government departments,
• Different welfare schemes,
• Different application forms to be used by the citizens.
G2B E-commerce:
• Government-to-business (G2B) is a business model
that refers to government providing services or
information to business organization.

• Government uses B2G model website to approach

business organizations. Such websites support
auctions, tenders and application submission
functionalities.
 COMPARISION
TRADITIONAL E-COMMERCE

• MANUAL • AUTOMATIC
• LIMITED TIME • 24*7*365
• GOODS CAN BE • GOODS CANNOT BE
PHYSICALLY INSPECTED PHYSICALLY INSPECTED
• FACE-TO-FACE • SCREEN-TO-FACE
• LIMITED AREA • WIDE AREA
• INSTANT DELIVERY • TAKES TIME
• No uniform platform • Provides a uniform
for exchange of platform for
information information exchange.
• One way marketing • One-to-one marketing
ADVANTAGES OF E-COMMERCE:
1. Availability for 24 hours of 24 and 7 days of 7:
This availability independent on a certain program represents a major
advantage for the clients who can purchase during night too when they are
not busy with other urgent problems (job, household).
2. Facilities:
Due to the electronic commerce there is no need to go to the commercial
places or to the shop next to corner .Everybody may place orders from
home sitting in front of the PC and thoroughly analyzing and comparing
different products.
3. Access to information:
The apparition of the electronic commerce gave a new meaning
of the term ‘globalization’. For example in order to buy
handcrafted items from Madagascar it is not necessary to travel to
that destination but only to open the browser at the address of a
shop that is trading such items (address that can be found using
the searching motors).
4. Permanent contact with customers:
Comparing with the common employees who need salaries, a working
time table, vacation, with a varying productivity and being subjective a
web site is offering information about the company and her products or
she is taking and processing orders for 24 hours of 24 and 7 days of 7
continuously with minim costs.
5. The decrease of the functioning costs:
These costs may be drastically diminished by the automatics of
the orders process.
DISADVANTAGES:
1. The Fraud:
As in any other activity field, the technology of internet
created new fraudulent possibilities. In the lack of a direct
contact a client may cheat the trader regarding his identity or
his real payment possibilities.

2. Security:
The most important reason for which some persons hesitate to
use internet for purchases-as resulted from most of the opinion
polls – is that of being afraid to supply on line information
regarding the credit card.
3. Absence of human contact:
The human presence to which the buyer may appeal to in case
he has doubts, represents an obstacle in spreading this form of
commerce.
4. Intimacy
Another important problem is the attempt to the personal
intimacy. The potential buyers are afraid that by internet the
traders or a bad will person can collect thorough information and
they will not realize this at all. Unfortunately these worries are the
result of some exaggerations.
5. Launch and integration costs:
Although the launch costs of a virtual shop are much lower in
comparison with those of a real one they may be incorrectly
estimated
CONCLUSION:
• E-commerce is an evolution"
- By using electronic technology through the internet,
it achieved More competitions, more marketplaces,
faster transactions, and more advanced technologies
to make activities between customers and producers
more active.
* We as customers and internet users are responsible
to keep our e-commerce healthy and safe so that e-
business can be more reliable in the future