The document provides an overview of e-commerce, including:
- Defining e-commerce as commercial transactions of products/services between individuals and organizations that occur digitally over the internet.
- Discussing unique features of e-commerce like ubiquity, global reach, interactivity, and personalization.
- Outlining different business models for e-commerce, including internet-only businesses, offline businesses that transitioned online, and offline-only businesses.
- Comparing "clicks" online commerce with "bricks" physical commerce and the advantages of each.
- Describing different types of e-commerce like B2C (business to consumer), B2B (business to business
2. CONTENTS
• Definition of e-commerce
• Unique features of e-commerce
• Business models (regarding e-commerce)
• Clicks VS Bricks
• Types of e-commerce
• Building online commerce
4. DEFINITION OF E-COMMERCE
• Commercial transactions
• Products and services
• Individuals and organisations
Adapted from Laudon & Traver, 2011
5. DEFINITION OF E-COMMERCE
• Commercial transactions
• Products and services
• Individuals and organisations
...wait, isn’t that just commerce?
Adapted from Laudon & Traver, 2011
6. DEFINITION OF E-COMMERCE
• Commercial transactions
• Products and services
• Individuals and organisations
...wait, isn’t that just commerce?
• Digitally enabled
• Occur over the internet and the web
Adapted from Laudon & Traver, 2011
7. WHY IS E-COMMERCE
IMPORTANT?
• By 2014:
• Consumers will spend USD$358 billion
• Business will spend USD$5.2 trillion
• In 2020 is expected that e-commerce will be the 20% of ALL retail
sales
9. 1. UBIQUITY
• Internet technology is everywhere
• PCs, laptops, mobile devices, slates, cars, fridges
• Is your company ready to handle orders placed in Dec 25th at
11:00PM?
10. 2. GLOBAL REACH
• Everywhere
• Bills, invoices, deliveries, taxes...
• Is your supply chain ready to handle international deliveries? At
what cost?
11. 3. UNIVERSAL STANDARDS
• One set of standards
• Can be conveyed to all screens
• Truth or fiction?
12. 4. RICHNESS
• Video, audio, text messages...
• Tools to deliver more information to consumers
• Decreases search costs
• Increases sales promotion expenditures?
13. 5. INTERACTIVITY
• Technology works through interaction with the user
• Two-way communication
• Do you have CUSTOMER SERVICE?
14. 6. INFORMATION DENSITY
• Reduced information costs
• Prices and costs become more transparent
• Updated and accurate information
• Can you afford a price war?
15. 7. PERSONALIZATION/
CUSTOMIZATION
• Personalization of messages
• Customization of orders/products
• Is your supply chain ready?
16. 8. SOCIAL TECHNOLOGY
• User content generation
• Peer reviews and ratings
• Is your company ready to manage
improper messages?
• Can your company turn the situation
around?
17. 8 UNIQUE FEATURES
1. Ubiquity
2. Global reach
3. Universal standards
4. Richness
5. Interactivity
6. Information density
7. Personalization/Customization
8. Social technology
29. COMPATIBILITY OF PRODUCTS
WITH ONLINE MARKETING
Category
Books Shoes Toothpaste DVD Player Flowers Food items
Acceptance 0.904 0.769 0.886 0.787 0.792 0.784
Adapted from Kacen, J., Hess, J., Chiang, W.K., 2002
30. COMPATIBILITY OF PRODUCTS
WITH ONLINE MARKETING
Category
Books Shoes Toothpaste DVD Player Flowers Food items
Acceptance 0.904 0.769 0.886 0.787 0.792 0.784
Adapted from Kacen, J., Hess, J., Chiang, W.K., 2002
31. COMPATIBILITY OF PRODUCTS
WITH ONLINE MARKETING
Category
Books Shoes Toothpaste DVD Player Flowers Food items
Acceptance 0.904 0.769 0.886 0.787 0.792 0.784
Adapted from Kacen, J., Hess, J., Chiang, W.K., 2002
32. COMPATIBILITY OF PRODUCTS
WITH ONLINE MARKETING
Category
Books Shoes Toothpaste DVD Player Flowers Food items
Acceptance 0.904 0.769 0.886 0.787 0.792 0.784
Adapted from Kacen, J., Hess, J., Chiang, W.K., 2002
33. COMPATIBILITY OF PRODUCTS
WITH ONLINE MARKETING
Category
Books Shoes Toothpaste DVD Player Flowers Food items
Acceptance 0.904 0.769 0.886 0.787 0.792 0.784
Adapted from Kacen, J., Hess, J., Chiang, W.K., 2002
34. COMPATIBILITY OF PRODUCTS
WITH ONLINE MARKETING
Category
Books Shoes Toothpaste DVD Player Flowers Food items
Acceptance 0.904 0.769 0.886 0.787 0.792 0.784
Adapted from Kacen, J., Hess, J., Chiang, W.K., 2002
35. COMPATIBILITY OF PRODUCTS
WITH ONLINE MARKETING
Category
Books Shoes Toothpaste DVD Player Flowers Food items
Acceptance 0.904 0.769 0.886 0.787 0.792 0.784
Adapted from Kacen, J., Hess, J., Chiang, W.K., 2002
36. ADVANTAGES OF DIGITAL
• Rich product information • Price comparison and special deals
• Broadest selection • Social engagement and two-way
dialogue
• Customer reviews and tips
• Convenience of anything, anytime,
• Convenient and fast checkout anywhere access
• Editorial content advice •
CLICKS
Source: Darrell, R. (2011) HBR
37. ADVANTAGES OF DIGITAL
• Rich product information • Price comparison and special deals
• Broadest selection • Social engagement and two-way
dialogue
• Customer reviews and tips
• Convenience of anything, anytime,
• Convenient and fast checkout anywhere access
• Editorial content advice •
CLICKS
Source: Darrell, R. (2011) HBR
38. ADVANTAGES OF PHYSICAL
• Edited assortment • Ability to test, try on, or experience products
• Convenient returns • Help with initial setup or ongoing repairs
• Shopping as an event and an experience • Personal help from caring associates
• Instant access to products • Instant gratification of all senses
BRICKS
Source: Darrell, R. (2011) HBR
39. ADVANTAGES OF PHYSICAL
• Edited assortment • Ability to test, try on, or experience products
• Convenient returns • Help with initial setup or ongoing repairs
• Shopping as an event and an experience • Personal help from caring associates
• Instant access to products • Instant gratification of all senses
BRICKS
Source: Darrell, R. (2011) HBR
43. 1. PORTAL
• Content and social network services
• Search engines
• Seeks to be a user’s home base
REVENUE MODEL:
Advertising
Subscription fees
Transaction fees
Adapted from Laudon & Traver, 2011
44. 2. E-TAILER
• Distribution channel
• Web version of a mail catalog
• Complement to physical stores
REVENUE MODEL:
Sales of goods
Adapted from Laudon & Traver, 2011
45. 3. CONTENT PROVIDER
• Specialised content
• Special interest
• News/Sports/Economics/Business
information
REVENUE MODEL:
Advertising
Subscription fees
Affiliate referral fees
Adapted from Laudon & Traver, 2011
46. 4. TRANSACTION BROKER
• Processors of online sales transaction
• Brokers and travel agents (middlemen)
• Aim to increase customers’ productivity
REVENUE MODEL:
Transaction fees
Adapted from Laudon & Traver, 2011
47. 5. MARKET CREATOR
• Bring buyers and sellers together
• Creation of markets
REVENUE MODEL:
Transaction fees
Adapted from Laudon & Traver, 2011
48. 6. SERVICE PROVIDER
• Sales of services
• Cloud computing, sharing services, Saas
REVENUE MODEL:
Sales of services
Adapted from Laudon & Traver, 2011
49. B2B BUSINESS-TO-BUSINESS
• E-distributor
• Sales of goods
• E-procurement
• Sellers and buyers meet
• Industry consortium
• Industry-owned vertical digital market for select suppliers
• Private Industrial Network
• Supply chain coordination
50. OTHER BUSINESS MODELS
• Consumer-to-consumer
• Helps consumers to connect with other consumers
• Peer-to-peer
• Share files, services and content via web
• No use of a common server
• M-commerce
• Through mobile devices
• Sandboxed commerce
• Within platforms
• AppStores, Facebook pages
51. TYPES OF E-COMMERCE
2. B2B
1. E-distributor
1. B2C
2. E-procurement
1. Portal
3. Industry consortium
2. E-tailer
4. Private industrial network
3. Content provider
3. Other business model
4. Transaction broker
1. Consumer to consumer
5. Market creator
2. Peer to peer
6. Service provider
3. M-commerce
4. Sandboxed commerce
66. • Having a web-shop is not “different” to having a physical shop
• E-commerce has different metrics than physical retail
• In e-commerce everything can be measured and tracked. Thus, there
is no excuse for not having on-going improvement
• E-commerce implies challenges in logistics, customer service,
accounting, marketing...