THE NATURE OF ELECTRONIC

COMMERCE
• BANTOC,AIRA M.
• BESA,LARA YSABEL
• CATAJAY,CRISTENE JAYE V.
• FRUGAL,CLARISE ANNE
• REBOSQUILLO,MARLON
• TALADTAD,CARMELA
• ZABALA,DANICA
NATURE AND CONTEXT OF E-COMMERCE
•ELECTRONIC COMMERCE
-Also known as “E-Commerce”,is the business of buying and
selling goods and services that work using the internet or over
electronic frameworks.
-ECommerce is based on transactions electronically.
 Involves many different types of technologies such as:
• Mobile
• Supply Chain Management
• Point of Sale (POS)
• Electronic Data Interchange (EDI)
• Online transaction Processing (OLTP)
 NATURE AND CONTEXT OF E-COMMERCE
Contextual e-commerce
— implies an integrated approach
The concept of contextual commerce spread far beyond the advertising. It also implies providing
contextual customer experience: Making buying seamless inside of environments that consumers
regularly use.
•|| E-COMMERCE ECOSYSTEM ||•
•ONLINE TRAVEL ,TICKETING ETC
•ONLINE RETAIL
•ONLINE MARKET PLACE
•ONLINE DEALS
•ONLINE PORTAL CLASSIFIED

•|| TYPES OF E-COMMERCE || •

B2B —Business to Business
B2C —Business to Consumer
C2C —Consumer to Consumer
Categories of E-commerce
Five general E-Commerce categories:
Business to Consumer Businesses sell products or services to individual
consumers

Business to Business Businesses sell products or services to other businesses

Business Processes Support selling and purchasing activities

Consumer to Consumer Participants in an online marketplace can buy and sell

goods to each other

Business to Government Businesses sell goods or services to government and

agencies.
 FRAMEWORK OF ECOMMERCE
 The EC Framework, Classification, and Content
• Intranet
An internal corporate or government network that uses
Internet tools, such as Web browsers, and Internet
protocols
• Extranet
A network that uses the Internet to link multiple intranets
 FRAMEWORK OF ECOMMERCE
The EC Framework, Classification, and Content
• EC applications are supported by infrastructure
and by these five support areas:
– People
– Public policy
– Marketing and advertisement
– Support services
– Business partnerships
1. Business-to-consumer (B2C)
2. E-tailing
3. Business-to-business-to-consumer (B2B2C)
4. Consumer-to-business (C2B)
5. Mobile commerce (m-commerce)
6. Location-based commerce (l-commerce)
7. Intrabusiness EC
8. Business-to-employees (B2E)
9. Collaborative commerce (c-commerce)
10. Consumer-to-consumer (C2C)
11. Peer-to-peer (P2P)
12. E-learning
13. E-government

• The Interdisciplinary Nature of EC

-The Google Revolution
-EC Failures
-EC Successes
The Future of EC
- Web 2.0
Dimension of Electronic Commerce
 Traditional Commerce
- The process of buying and selling goods in direct form, this
began with the start of human civilization, namely the barter
system.
 Pure E-Commerce
- Pure E-Commerce is when everything happens on the internet.
Products, transaction are all digital. Also, the delivery.
 Partial E-Commerce
- Is when a company will sell a good through the internet but
the fulfillment of the good will needed to take place in the real
world.
The Electronic Market (e-marketplace)
• An online marketplace where buyers and sellers meet
to exchange goods, services, money, or information.
 2 TYPES OF MARKET
• A vertical market is one in which all of your
customers are in one particular industry, regardless of
where in the food chain they are.
• A horizontal market is one in which all of your
customers use your product to do the same thing,
regardless of what industry they are in.
 
Private e-marketplace
Online markets owned by a single
company;may be either sell-side and/or buy-
side e-marketplaces

Public E-marketplace
• B2B marketplaces, usually owned and/or
managed by an independent third party.
• They are open to the public and are
regulated by the government or the
exchange’s owners.
• They include many sellers and many buyers.
• They also are known as exchanges
ELECTRONIC BUSINESS
OPTIONS
 CONSTEXTUALIZING E-BUSINESS
•UBIQUITY Refers to the quality of being available everywhere .

•GLOBAL CONNECT  Ecommerce effortlessly goes beyond traditional, cultural

and national boundaries and allows companies to access
customers across the globe .

•UNIVERSAL STANDARDS The technical standards of the internet and therefore of

conducting ecommerce ,are shared by all of the nations in
the world.

•INTERACTIVITY Ecommerce technologies facilitate two-way

communication between the merchant and the
consumers using chat ,SMS,Viber Email ,Voicemail over
internet protocol (VIOP)

•INFORMATION DENSITY Ecommerce comprises a wide source of information

,which is available to all the stakeholders .

•PERSONALIZATION CUSTOMIZATION Ecommerce technologies allow merchants to target their

marketing messages to a people based on their interests
and past purchase history.

•SOCIAL NETWORKING  Ecommerce players have partnered with social media

networking sites to allow users to share content and to
deploy the company eMarketings systems. 
 E-COMMERCE -ADVANTAGES AND DISADVANTAGES

ADVANTAGES  DISADVANTAGES 
Provide flexibility to the customer to buy product 24/7 No one can buy during a site crash.
(browsing , buying and selling )

Less Store Set-up Cost and Quick ROI Lack of trust in e-commerce ,e-retailer’s website leads
to unsustainable environment.

No geographic limitations  Susceptible to cyber attacks 

Low operational costs due to low overheads  Low barriers to entry

Wide range of products and services or can sell Customer data susceptible to risk of theft.
Internationally .

Wide choice of payments options (g-cash,paymaya, Highly dependent on technology and needs to be
local banking cards , credit and debit cards ,vouchers continuously updated with the latest web.
etc.)

Low operational costs allowing company to earn on E-commerce  Is Highly Competitive .

higher margins.

Helps consumers compares different products. Late Delivery .

COMPONENTS OF E BUSINESS
 • WHAT IS COMPONENTS OF E BUSINESS?
 The core components of e-business are
information, communication, and transaction.
Business partners use digital networks.
BACK END and FRONT END
• Front End- Operations that deal directly with the
customer.
Includes Marketing, Sales, and Customer support
services.
• Back End- Operations that include all of the internal
support activities that don’t require face to face
interaction with the customer.
Includes Accounting, Distribution and Delivery, Human
Resources, Inventory and Manufacturing.
Types of E-business Models
E-BUSINESS MODEL
A method of doing
business by which a
company can generate
revenue to sustain itself.
Types of E-business Models
• Business to Business
The largest e-business model based on generated revenue is
business to business, or B2B. With the B2B model, both the
seller and buyer are business entities.
• Business-to-Consumer
Another common e-commerce business model is business to
consumer, or B2C. This business model involves a business
that sells products directly to consumers online.
• Consumer-to-Consumer
While B2B and B2C business models are conventional and
straightforward, the consumer to consumer, or C2C, model is
less prevalent. Also referred to as citizen to citizen, the C2C
business model involves transactions between two
consumers. The consumers are the buyers and sellers.
• Consumer-to-Business
The consumer to business, or C2B, e-commerce model is not
as common as the other types, but it is becoming more
prevalent. With the C2B model, consumers create all the
demand and bring value to products that businesses sell.
• THE E-BUSINESS TRANSACTION INDEX (T.I)
Transaction-based indices refer to a mode of
monitoring the performance of the commercial
real estate market. Such indices are rare since the
acquisition of property is a personal endeavor.
Appraisal-based indices are the most common
form of indices since, to some extent,investors are
obliged to revalue assets they hold. Consequently,
the appraisal-based index gives lagged and
smoothed price estimates in the market.
 Types of Transaction-based Indices
• Transactions-based indices can be categorized into two: statistical and ad hoc.
The statistical type is known for optimizing with regard to econometric principles, which minimize
the error level close to zero. The statistical methods can regulate the differences in property
values and between durations. The ad hoc methods cannot optimize according to econometric
principles and cannot control the difference between property values nor the difference between
periods.

• Developing a Transaction-based Index

The easiest method of computing a transaction-based index is by taking the mean of all
accessible assets traded in a particular period. Taking the average means that there is both the
difference in property quality and the market movements in the number of sales in a particular
period. The average, therefore, puts into perspective the market value and the fluctuations in
the value of assets being sold.

• Pros of a Transaction-based Index

There’s no doubt that appraisal-based indices are the most popular form of indices used to
evaluate the performance of the real estate industry. However, transaction-based indices better
express the real estate industry’s performance. It refers to real-time prices, as opposed to
valuation-based indices, which refer to past prices since valuation is done in the past.
.
Again, valuation prices are partially
based on the comparison of
recently sold properties. The
challenge occurs in obtaining recent
transactions on acquisitions.
Properties are sold infrequently
and silently from the public eye.
Appraisal-based indices tend to
draw criticisms due to lagging
transaction prices, which are
developed from previous
valuations.
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