INTRODUCTION TO ECOMMERCE

Brief History

1970s: Electronic Funds Transfer (EFT) Used by the banking industry to exchange account information over secured networks Late 1970s and early 1980s: Electronic Data Interchange (EDI) for e-commerce within companies Used by businesses to transmit data from one business to another 1990s: the World Wide Web on the Internet provides easyto-use technology for information publishing and dissemination Cheaper to do business (economies of scale) Enable diverse business activities (economies of scope)

E- Commerce VS

E - Business

E - Commerce
buying and selling of products or services over electronic systems

such as the Internet and other computer networks

E - Business
E-business involves business processes spanning the entire value chain:

electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners

Advantages and Disadvantages

Ware housing Inventory Handling costs Soft products

Trust and Reliability No Physical presence Network security issues Payment Frauds

Sample E Commerce Applications

Supply chain management Procurement and purchase Video on demand Home shopping ebay, Future bazaar. Remote banking SBI, HDFC Online marketing google, yahoo Interactive games zapaak Information on demand send space Ticket booking bus, movie, train IRCTC

Types of e-commerce
business-to-business (B2B) business-to-consumer (B2C) business-to-employee (B2E) business-to-government (B2G) government-to-business (G2B)

government-to-government (G2G)
government-to-citizen (G2C) consumer-to-consumer (C2C)

consumer-to-business (C2B)

 Business-to-Business (B2B) is a term commonly used to describe commerce transactions between businesses like the one

between a manufacturer and a wholesaler or a wholesaler and a retailer i.e both the buyer and the seller are business entity
Business-to-consumer (B2C) describes

activities of businesses serving end consumers with products and/or services.

 Consumer-to-consumer (or C2C) electronic

commerce involves the electronicallyfacilitated transactions between consumers through some third party. A common example is the online auction.
Business-to-employee (B2E) electronic

commerce uses an intrabusiness network which allows companies to provide products and/or services to their employees. Typically, companies use B2E networks to automate employee-related corporate processes. - Online insurance policy management

 Government-to-Business (abbreviated G2B)

is the online non-commercial interaction between local and central government and the commercial business sector. For example govt auctions.
Government-to-Citizen (abbreviated G2C) is

the online non-commercial interaction between local and central Government and private individuals, rather than the commercial business paying tax etc

 Government-to-Government (abbreviated

G2G) is the online non-commercial interaction between Government organisations, departments, and authorities and other Government organisations, departments, and authorities. Internal facing - joining up a single Governments departments, agencies, organisations and authorities External facing - joining up multiple Governments IS systems

 Consumer-to-business (C2B) is an electronic

commerce business model in which consumers (individuals) offer products and services to companies and the companies pay them. This business model is a complete reversal of traditional business model where companies offer goods and services to consumers

Internet Usage and Population Statistics

Building a e-business

Learn what it means to join e-business revolution Find your unique place in the e-business market Shape your e-business idea Investigate your e-business competition Formalize and conceptually test business idea Build a fast and functional website Market your e-business Find a trading community support syour e-business Continuous improvement