Communication Technology Topic: E-Commerce Platform What is Electronic Commerce? E- Marketplaces Components and participants in E-Marketplaces EC Platform Electronic Commerce Requirements Revenue Models

1. Communication Technology
The Effective E-Commerce Platform

2. OVERVIEW
• What is Electronic Commerce?
• E- Marketplaces
• Components and participants in E-
Marketplaces
• EC Platform

3. OVERVIEW
• Electronic Commerce Requirements
• Revenue Models

4. What is Electronic Commerce?
• Electronic Commerce (EC) is the process of
buying, selling, transferring, or exchanging
products, services, and/or information via
computer networks, mostly the Internet and
the Intranet.

5. Technology and E-Commerce
Electronic commerce draws on technologies
such as mobile commerce, electronic funds
transfer, supply chain management, Internet
marketing, online transaction processing,
electronic data interchange (EDI), inventory
management systems, and automated data
collection systems.

6. E- Marketplaces
• An online market, usually B2B in which buyers
and sellers exchange goods and services: the
examples types of e-marketplaces are private
and public.
• Electronic market is a major place for
conducting EC transactions.
• E-marketplace also known as e-market, virtual
market or space-market.

7. Components and participants in E-
Marketplaces
Customer Seller
Product and
services
Infrastructure Front end Back end
Intermediaries

8. Types of E-Marketplaces
Private E-Marketplaces
Owned and operated by a single company. For
example, Dell, HP and Air Asia sell from their
websites.
Public E-Marketplace
Public E-Marketplace usually B2B markets. They
often are owned by third party (not seller or buyer)
or by a group of buying or selling companies, and
serve many seller and buyers.

9. E-Commerce Question
• If you've made a purchase on the Web before,
then you're likely no stranger to an ecommerce
platform.
• The ease and convenience that this software
brings is great for consumers, but as a small-
business owner, do you know how it works?
• The facade of systems are often bright, colourful
and easy to use, but on the back end, ecommerce
software is a multifaceted and complex machine.

10. What is it exactly?
• Ecommerce developed in correlation with the
mainstream growth of the Internet at the turn
of the century. Major companies like eBay and
Amazon took what traditional brick-and-
mortar companies have done for so long and
turned retail into a digital marketplace.
E-Commerce Simple Video

11. Electronic Commerce Requirements
• A catalog display
• Shopping cart capabilities
• Transaction processing

12. Catalog Display
• A small commerce site can have a simple
catalog, which is a static listing of goods and
services.
• Larger catalog has photos of items,
descriptions, and a search feature.
• For example, “MP3.com” is a large commerce
site and “Women in Music” is a small site.

13. Shopping Cart
• Online forms were used for online shopping.
• A new way of online shopping is through
shopping carts.
• QuickBuy is one company that makes this type
of shopping cart software.
• Cookies are bits of shopping information
stored on a client computer.

14. Transaction Processing
• Transaction processing occurs when the
shopper proceeds to the virtual checkout
counter.
• Software needs to calculate price, volume
discounts, sales tax, and shipping costs.
• Sales tax may vary in different states.

15. Ecommerce Software
Ecommerce is no longer just an online catalogue
and a shopping cart. You need ecommerce
software that enables you to provide a
seamless, cross-channel, multi-tier shopping
experience across all digital and physical touch
points.

16. Example of EC Software
• IBM WebSphere Commerce
• Netscape’s Netscape CommerceXpert
• Oracle’s iStore
• BigCommerce
• Shopify
• Vendio

17. Revenue Models
• Mail order or catalog model
– Proven to be successful for a wide variety of
consumer items
• Web catalog revenue model
– Taking the catalog model to the Web

18. Digital Content Revenue Models
Firms that own intellectual property have
embraced the Web as a new and highly efficient
distribution mechanism
• Lexis.com
– Provides full-text search of court cases, laws,
patent databases, and tax regulations
• ProQuest
– Sells digital copies of published documents

19. Advertising-Supported Revenue
Models
• Broadcasters provide free programming to an
audience along with advertising messages
• Success of Web advertising is hampered by
– No consensus on how to measure and charge for
site visitor views
• Stickiness of a Web site: the ability to keep visitors and
attract repeat visitors

20. Advertising-Subscription Mixed
Revenue Models
Subscribers
– Pay a fee and accept some level of advertising
– Typically are subjected to much less advertising
Used by
– The New York Times and The Wall Street
Journal

21. Communication Technology
The Effective E-Commerce Platform