1. E-Commerce:
A Revolution in the Way
We Do Business

2. There is no finish line…
– Nike Corporate Motto

3. What is electronic
commerce (e-commerce)?
 Financial business
transaction that occurs
over an electronic
network
 Sometimes called
e-business

4. How are e-commerce transactions
conducted?
 Primarily through desktop
computers
 Wirelessly using handheld
Web-enabled devices
M-commerce
E-commerce that
takes place using
mobile devices

5. What is a bricks-and-mortar business?
 Company with a
physical location,
such as Wal-Mart or
Kmart

6. What is a clicks-and-mortar business?
 Company with a bricks-and-mortar
location as well as an online presence
 Some companies
have online
presence
without physical
locations
• E*Trade and
Amazon.com

7. What is an electronic storefront? add to cart
 Web site
where e-
retailer
displays its
products
 Shopping cart
allows
customer to
collect
purchases
 Also called
online catalog

8. What is a shopping bot?
 Web site that
searches for
the best price
on a specific
product
 Also called a
shopbot

9. What is business-to-consumer
(B-to-C or B2C) e-commerce?
 Sale of
products or
services from
a business to
the general
public

10. What is consumer-to-consumer
(C-to-C or C2C) e-commerce?
 Individuals
using Internet
to sell
products to
other
individuals
• Online
auction, such
as eBay

11. What is business-to-business
(B-to-B or B2B) e-commerce?
 Sale and exchange of products and service
between businesses
 Many businesses engage in both B2B and B2C
 Supply chain creates and distributes products

12. E-Commerce Stats

13. What is business-to-employee
(B-to-E or B2E) e-commerce?
 Sale and exchange of products and service
between a business and its employees
 Usually through an intranet

14. What are some advantages of e-commerce?
• Global market 24/7
• Businesses have access to 459 million people with Internet
access
• Lower operating costs
• Customers can conduct price comparisons easily
• Feedback can be immediate
• Changing information can be available quickly
• FAQ (frequently asked questions) pages can provide easy
access to customer support
• Ability to gather customer information, analyze it, and react
• New and traditional approaches to generating revenue
• Manufacturers can buy and sell directly, avoiding the cost of
the middleman
• Distribution costs for information reduced or eliminated
• Options to create a paperless environment

15. Revenue Streams
 Sales
 Subscriptions
 Banner ads
 Pop ups
 Web searches
• Paid listings
• Paid inclusion
• Search engine
optimization
http://www.zetetic.com/domain-name-sales.html

16. Building Traffic
 The 3Cs Approach
• Content, community, and commerce
 Keywords and Search Engines
• Choose name and product names that best
describe business purpose and features
• Select descriptive domain names
• Business-related keywords can be listed in
the HTML meta tag
16

17. Building Traffic (continued)
 Marketing
• Online advertising methods include
banner ads, pop-up ads, and e-mail
• Offline advertising methods include
magazines, newspapers, radio, and
television
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18. Electronic Payment Systems
 Electronic cash (e-cash or digital cash)
• Provides a private and secure method of
transferring funds
• PayPal
– Best-known e-cash provider
 E-cash benefits
• Privacy - hides account information from vendors
• Convenient if seller cannot process a credit card
 Smartcards
• Credit cards with embedded microchips
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19. Ecommerce Spending Trends
 At the end of 2008, worldwide e-commerce
is expected to exceed $470 brillion.
 By 2010:
- 71% of US consumers will use the Internet to
shop
- 50% of ALL retail sales will be influenced by the
Internet

20. Consumer Concerns
 A recent poll of Americans Found that
• 13% had no fears about E-Commerce
• 53% had concerns of privacy and security
• 20% cited the inability to inspect products
closely over the Internet
• 3% do not like to wait for delivery

21. Limitations
 Bandwidth or data capacity
 Comfort Factor
 Security
 Privacy

22. What factors lead to customer loyalty?
 Best storefronts are
efficient and easy to
use
 Customers who
must wait more than
eight seconds for a
page to download
usually will click to
another site

23. Fun thought…
 People are more violently opposed
to fur than leather because it's safer
to harass rich women than
motorcycle gangs.