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Benghazi University

Faculty of Information Systems

E-COMMERCE

Lecturer:
Ghada EL-Sherif 1930
Mr.Ahmed Zohdi
Mariam El_Sohbi 2148
TOPICS
• What is E-Commerce?
• History of E-Commerce
• What is E-Business?
• E-Commerce VS E-Business
• Types of E-Commerce & E-Business
• E-Commerce Applications
• E-Commerce Issues
• Advantages & Disadvantages
• Top E-Commerce websites
• Distributed Commerce, Thinking outside the Box
• Future of E-Commerce
WHAT IS E-COMMERCE
WHAT IS E-COMMERCE

• short for “electronic commerce”


• is the buying and selling of goods and services, or the transmitting of funds or data,
over an electronic network, primarily the internet
• allows consumers to electronically exchange goods and services with no barriers of
time or distance
• Unlike the physical store, in E-Commerce, there is no need for the buyer and the
seller to meet with each other in order to do the whole selling and buying process
HISTORY OF E-COMMERCE
HISTORY OF E-COMMERCE

1960s E-commerce was first introduced via an electronic data interchange (EDI)
on value-added networks (VANs). organizations began to use Electronic
Data Interchange (EDI) to transfer documents of their business back and
forth.

1990s and early The medium grew with the increased availability of internet access and the
2000s advent of popular online sellers

1990s saw the emergence of online shopping businesses, which is quite a


phenomenon today. It has become so convenient and easy, that anyone can shop
for anything right from a living room, with just a few clicks.

1995 Amazon began operating as a book-shipping business


WHAT IS E-BUSINESS?
WHAT IS E-BUSINESS?

• E-Business or Electronic Business refers to the use of internet, extranet, and intranet
to conduct businesses. E-Business is quite similar to E-Commerce, but it is more than
just a simple act of buying and selling products and services online.

• E-Business includes a wider kind of business processes. It includes buying and


selling products, supplies and services; servicing customers; processing payments;
sharing information; and more.
E-COMMERCE VS E-BUSINESS
E-COMMERCE VS E-BUSINESS

The Differences Between E-Commerce and E-Business


• Buying and selling things via the internet is known as E-Commerce.
• E-Business is all the business activities that conducted via the internet
• E-Commerce is a main part of E-Business
TYPES OF E-COMMERCE & E-BUSINESS
E-COMMERCE HAS 4 MAJOR TYPES:
BUSINESS-TO-BUSINESS (B2B):

• Electronic transactions of goods and services between companies.


BUSINESS-TO-CONSUMER (B2C):

• Electronic transactions of goods and services between companies and consumers


CONSUMER-TO- CONSUMER (C2C):

• Electronic transactions of goods and services between consumers, mostly through a


third party. Examples: eBay and Etsy
CONSUMER-TO-BUSINESS (C2B):

• Electronic transactions of goods and services where individuals offer products or


services to companies.
THERE ARE TWO E-BUSINESS TYPES:

1. Pure play
• This refers to a company that focuses on one particular kind of product or service,
instead of various kinds at once.

2. Brick and click


• This term is suitable for a company that runs their business in both online and offline
way. That is mean, while they have a website and offer their products or services
online, at the same time they also have a physical store and sell their products or
services there.
COMPARISON CHART

E-commerce E-Business

people make transactions by buying and


Function selling of goods and services on the The business is done on the internet
internet

Types Includes b2b, b2c, c2c and c2b Pure-play and brick and click

Involves relationship building with


Requires the use of website for
Requirement customers, suppliers and
representing the business
distributors through CRM, Website.

Transaction Limited monetary transactions Unlimited monetary transactions


E-COMMERCE APPLICATIONS
Online Shopping
• Buying and selling goods on the Internet is one of the most popular examples of
ecommerce.
• Sellers create storefronts that are the online equivalents of retail outlets.
• Buyers browse and purchase products with mouse clicks.

Electronic Payments
• When you are buying goods online, there needs to be a mechanism to pay online too.
That is where payment processors and payment gateways come into the picture.

• Electronic payments reduce the inefficiency associated with writing and mailing
checks.
Online Auctions
• Physical auctions predate online auctions, but the Internet made auctions accessible to
a large number of buyers and sellers.
• Online auctions are an efficient mechanism for price discovery.
• Many buyers find the auction shopping mechanism much interesting than regular
storefront shopping.

Internet Banking
• Interfacing of websites with bank accounts, and by extension credit cards, was the
biggest driver of ecommerce.
Online Ticketing
• Air tickets, movie tickets, train tickets, play tickets, tickets to sporting events, and just
about any kind of tickets can be booked online.
E-COMMERCE ISSUES
SECURITY

• A business web site must be secure if it is going to handle financial transactions.


• A standard option is SSL (Secure Sockets Layer) using public key encryption , one of the
strongest encryption methods available. SSL ensures that private information—such as
passwords, credit card numbers, and customer profile data—is secure and encrypted as it
is transmitted.
• Consumers will know they are using secure sites when they see closed padlock icons on
the status bars of their web browsers.
• Another security protocol is called SET (Secure Electronic Transactions). SET encodes the
credit card numbers on a business server. Created by Visa and MasterCard, SET is very
popular in the banking community.
SHOPPING CARTS

• The electronic shopping cart is a popular feature that allows consumers simply to
click on a button to select one or more products for purchase. When the customer has
finished shopping, the cart system allows the consumer to "check out."
PAYMENTS

• Various payment options exist to facilitate business-to-consumer e-commerce. These


include digital or electronic cash, electronic wallets, and micropayments.
DIGITAL OR ELECTRONIC CASH (E-CASH).

• With digital cash, a consumer can pay for goods or services by transmitting a
number.
• The numbers, similar to those on a dollar bill, are issued by a bank and represent
specific sums of real money.
• Key features of digital cash are that it is anonymous and it can be reused, just like real
cash.
• Various forms of e-cash have been around for awhile but consumers seem to prefer
to use their credit cards.
ELECTRONIC WALLETS.

• These "wallets" store credit card numbers on personal computers in encrypted


forms.
• Consumers can make purchases using their credit cards at web sites that support one
of these wallets. A secure transaction is created by the electronic wallet company's
server.
MICROPAYMENTS.

• These transactions are in amounts up to $10, usually made in order to download or


gain access to games or graphics.
• This method of paying for online content is not as widespread as others.
MARKETING

• Because e-commerce allows businesses to reach a worldwide market and to compete


around the globe, creative marketing and promotion of a web site is crucial to the
success of an Internet-based business.
ADVANTAGES & DISADVANTAGES OF
E-COMMERCE
ADVANTAGES OF ECOMMERCE

• 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.
DISADVANTAGES OF ECOMMERCE

• Any one, good or bad, can easily start a business. And there are many bad sites which
eat up customers’ money.
• There is no guarantee of product quality.
• Mechanical failures can cause unpredictable effects on the total processes.
• As there is minimum chance of direct customer to company interactions, customer
loyalty is always on a check.
• There are many hackers who look for opportunities, and thus an ecommerce site,
service, payment gateways, all are always prone to attack.
TOP E COMMERCE WEBSITES
AMAZON
• Amazon (Amazon.com) is the world’s largest
online retailer and a prominent cloud services
provider. The company was originally a book
seller but has expanded to sell a wide variety of
consumer goods and digital media as well as its
own electronic devices, such as the Kindle e-book
reader, Kindle Fire tablet and Fire TV, a streaming
media adapter
EBAY
• eBay is the world's online marketplace; a place for buyers and sellers to come
together and buy or sell almost anything!
ALIBABA

• Alibaba The website helps to connect exporters


in China (and other countries) with companies in
over 190 countries around the world.
• The system allows a business in the UK to find a
manufacturer in China and have a range of goods
produced and shipped
ETSY

Etsy is an e-commerce website focused


on handmade items and supplies, as well
as unique factory-manufactured items.
These items cover a wide range, including
art, photography, clothing, jewelry, food,
bath and beauty products, and toys. Many
sellers also sell craft supplies such as
beads, wire and jewelry-making tools.
DISTRIBUTED COMMERCE:
THINK OUTSIDE THE BOX
This new way of using “distributed commerce” to sell requires
companies to expand beyond their current ecommerce activities to
include:
• Selling from apps, social networks, games, and shopping aggregators.
THE FUTURE OF E-COMMERCE
• Many analysts believe that e-commerce will reshape the business world.

• A small company with a higher quality product and better customer service can use
these communities to challenge larger competitors—something it might not be able to do
in the traditional world of commerce.
• Non-business organizations are using lessons learned in the early years of e-commerce.
• An example of what the future may hold is "eduCommerce," a concept combining online
course offerings with advertising content.

• Some experts believe that universities may eventually face stiff competition from
organizations that offer their courses at no charge, counting on sales generated from ads
to make their profits and draw new customers.
THANK YOU!