Introduction to eCommerce

eCommerce
Introduction to eCommerce
Luis M Cordeiro
Visiting Professor at University Saint Joseph
prof@luismcordeiro.net

Luis M Cordeiro prof@luismcordeiro.net eCommerce Lectures

What do you need to know?
Introduction to eCommerce

Internet Basic Concepts
Internet Protocols
Type of Websites
eBusiness vs eCommerce
Advantages and Disvantages of eCommerce


Internet Basics
Introducution tu eCommerce

World Wide Web

Webservers

Media Servers

HTML/XML

Databases

Intranet/Extranet

Backend/FronEnd

Front Office/Backoffice


Network Depths

Internet:
A collection of computers that speak a common language – protocol
Intranet:
Private version of the Internet
Main purpose to share company information and computing resources among
employees
Extranet:
Private network that users outside the company can access
Requires security and privacy
Collaborate with other companies


Internet Protocols

TCP/IP

IPv4 / IPv6

DNS

HTTP / HTTPS

FTP

SMTP / IMAP / POP

TELNET


Webpage Types

Search Engines
Directories
Microsite
Blogs/Forums
Informative Website
Institutional Website
Corporative Website
Marketing Website
eCommerce Website


The Myth

Is it so simple to
have a commerce
in internet?


Needs on Commerce

• You need a Product or service to sell
• You need a Place from which to sell the
products
• You need to figure out a way to get people to
come to your place.
• You need a way to accept orders.
• You also need a way to accept money.


Needs on Commerce

• You need a way to deliver the product or
service, often known as fulfillment.
• Sometimes customers do not like what they
buy, so you need a way to accept returns.
• You need a customer service and technical
support department to assist customers with
products.


Needs on eCommerce

Almost the same needs
as a traditional
Commerce but…
They are put together
in a different way!

eCommerce Definition

Exchange of digitized information
Technology-enabled transactions
Technology-mediated relationships
Intra and inter-organizational activities


eCommerce History

1970
First eCommerce Application - Electronic funds transfer (EFT).
Limited to large corporations, financial institutions, and
some big business;


eCommerce History

1983
Boston Computer Exchange claims the first public ecommerce
systems


eCommerce History

http://www.youtube.com/watch?v=wan896ZO4aY


eCommerce History

1994
First Big Wave: eBay and Amazon


eCommerce History

1998
Supporting this big wave


eCommerce vs eBusiness

eBusiness is an online tool that offers support for business
management but don’t need to complete any sale. It’s just a
tool available in internet that help managers and marketeers
running a business. Ex: online budget/bills systems, content
management systems, …

VS.
eCommerce is an online tool that offers support for business
management with the main goal of selling services and/or
products.
Ex: Any site where you can buy online


Advantages for Sellers

• eCommerce can increase sales and decrease costs.
• The online advertising reaches a large amount of potential
customers throughout the world.
• There are virtual communities and social networks in
internet that can segment your market for specific products or
services.
• A business can reduce its costs by using eCommerce in its
sales support and order-taking processes.
• Electronic commerce increases sale opportunities for the
seller.


Advantages for Sellers

• It’s easy to expand your market to other countries;
• Paper free industry!
• Your product database can be used by thirty party to
generate resources like directories, promotions, …
• You can have an overall control of who’s accessing your
business;
• You can use statistical data generate offers and promotions;
• You can manage marketing strategies with objective data.


Advantages for Consumers

• Enables customers to shop or do other transactions 24 hours a day,
all year round from almost any location;
• Can provide customers more options;
• Provides customers less expensive products and services;
• Provides customers comparisons tools;
• Can provide a lot of payment method;
• Makes it possible to participate in virtual auctions;
• Makes it possible to interact with other users and exchange ideas
and reviews about products and services;
• Users can have access rankings and indexes produced by the
community, helping the customer choosing the right product.


Advantages for Society

• More peple can work at home;

• People from rural areas can access to the same products like
people in urban areas;

• People from some underdeveloped countries can access to
the same products as people from developed ones;

• eGovernment systems reduced the time spent by people in
managing some administrative tasks;


eCommerce Disvantages

• Some business processes are difficult to be implemented
through electronic commerce. (ex: Lawyers)
• Return-on-investment is difficult to apply to electronic
commerce.
• Businesses face cultural and legal obstacles to conducting
electronic commerce.


eCommerce Evolution

http://www.youtube.com/watch?v=rtahCi3KhZI&feature=related


Discussion
Introducution tu eCommercec

• Who have never bought any product by internet? And Why?
• How much costs an ecommerce System?
• Who have a paypal account?
• Is anyone selling something by internet?
• Is anyone earning money using advertising systems in blogs
and websites (ex: AdSense)


Contacts
My contact information

E-mail
You can contact me at
prof@luismcordeiro.net

On the web
twitter.com/luismcordeiro
linkedin.com/luismcordeiro
skype: luis_marco_cordeiro


Introduction to eCommerce

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