E-Commerce is taking the World by storm. Why, may you ask? Well before that question can be answered, one must understand commerce in general. According to the Miriam-Webster Collegiate dictionary, commerce is defined as: While the definition is rather broad, it does imply that commerce is the exchange of goods or services, typically for money, where the good or service is often moved from its original location to the buyer. Commerce can occur as simply as having a yard sale, or as complicated as buying groceries.
Regardless of the complexity of commerce, every sale that occurs must have three components. They must have buyers or consumers. These are people who are looking to purchase the goods or services offered for sale. Next they must have sellers. These are the people who are responsible for offering the goods or services for sale. Sellers can fall into two different categories. There are retailers, or sellers who offer their goods and services directly to the consumer, and distributors or wholesalers who sell mostly to businesses. The last category is really a subset of the seller category. Producers are the people that make the products that sellers sell to buyers. Therefore, the producers are in fact sellers as well.
The exchange of goods and services can be very complex as each sale has a number of requirements for completion. The seller is responsible for successfully fulfilling each of the requirements before a sale can be made. Firstly, the seller must have a product or a service to sell. Next, a location from which to sell the product or service must be secured. It is not required that this place be an address. It can be a telephone number or a catalog. Then there comes the process of advertising the good or service for sale. Traditionally the better a product is presented, the higher rate of sales. Next, one has to have a way to accept orders, be it at the checkout line at the grocery store or by mail or telephone, and then one must have a way of accepting payment for said sales. People can be billed, or pay first, and frequently they can pay by way of many methods, cash, check, credit card. After payment is received, and the consumer or buyer receives their product, fulfillment is complete. However not all customers are satisfied with their purchase, so one must have a way to handle returns. In addition to returns, the seller must be prepared to handle warranty claims as well as technical product support. That is commerce. Now onto the real stuff.
E-Commerce has provided a fresh platform for business that has changed the way businesses and consumers think about buying and selling. Increasingly buyers and sellers are turning to their computers to buy and sell products using such websites as eBay. EBay is the world’s online market place enabling trade on a local, national and international basis. With a diverse and passionate community of individuals and small business. EBay offers an online platform where millions of items are traded each day.
History of ecommerce dates back to the invention of the very old notion of “sell and buy”, electricity, cables, computers, modems, and the Internet. Ecommerce became possible in 1991 when the Internet was opened to commercial use. Since that date thousands of businesses have taken up residence at web sites. Ecommerce has a great deal of advantages over “brick and mortar” stores and mail order catalogs. Consumers can easily search through a large database of products and services. They can see actual prices, build an order over several days and email it as a “wish list” hoping that someone will pay for their selected goods. Customers can compare prices with a click of the mouse and buy the selected product at best prices. History of ecommerce is unthinkable without Amazon and EBay which were among the first Internet companies to allow electronic transactions. Thanks to their founders we now have a handsome ecommerce sector and enjoy the buying and selling advantages of the Worldwide Web. History of ecommerce would have never been possible without plastic cards, online shopping carts, secure payment gateways and many other inventions which had their say in the
EBay, a website that began in 1995 that allows buyers and sellers to trade items on the internet. Items are listed by category and anyone with an account can bid on the items of their choice. You can find just about anything you can possibly imagine on ebay, including cars, real-estate, collectibles, concert tickets, cd’s, clothing, dvd’s, and art work. Rare items can sell at very high prices. When you list an item for auction on ebay it can be seen by millions of people all over the world. The very nature of online auctions requires that strangers trust each other. Along with growth as a site for buying and selling, ebay worked hard to make their website a community.
Commerce Introduction to the Way the World Does Business
Commerce <ul><li>“ com.merce n [MF, fr. L commercium, fr. com- + merc-, merx merchandise] (1537) 1: social intercourse: interchange of ideas, opinions, or sentiments 2: the exchange or buying and selling of commodities on a large scale involving transportation from place to place 3: sexual intercourse” </li></ul>
3 Components of a Sale <ul><li>Buyers </li></ul><ul><li>Sellers </li></ul><ul><li>Producers </li></ul>
Requirements for Sale <ul><li>Product </li></ul><ul><li>Location to sell the product from </li></ul><ul><li>Advertising </li></ul><ul><li>A way to accept orders </li></ul><ul><li>Sale fulfillment </li></ul><ul><li>Customer support, warranty claims and general returns </li></ul>
E-Commerce Necessities <ul><li>A product </li></ul><ul><li>A website through which to sell the product </li></ul><ul><li>A way to attract consumers to the website </li></ul><ul><li>An online form to accept orders </li></ul><ul><li>A way to accept payment </li></ul><ul><li>A place to ship orders from </li></ul><ul><li>A way to accept returns, handle warranty claims and provide customer service. </li></ul>
Statistics <ul><li>“ ...the estimate of U.S. retail e-commerce sales for the third quarter of 2005, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, was $22.3 billion, an increase of 5.7 percent (±1.7%) from the second quarter of 2005." </li></ul><ul><li>"2004 online retail sales rose 23.8 percent to $89 billion, representing 4.6 percent of total retail sales. Including travel, online sales also rose 23.8 percent to $141.4 billion. Online retail sales will reach $109.6 billion [in 2005]. Online sales including travel will rise to $172.4 billion this year." </li></ul>
What are popular E-Commerce Items? <ul><li>Computers and electronics </li></ul><ul><li>Books </li></ul><ul><li>Apparel </li></ul><ul><li>Music </li></ul><ul><li>Financial and Travel services </li></ul><ul><li>Toys </li></ul><ul><li>Event tickets </li></ul>
Transition to E-commerce <ul><li>E-Commerce provides a new platform for businesses </li></ul><ul><li>Looking for ease of sales and quick turnover without leaving home </li></ul>
History of E-Commerce <ul><li>Notion of “sell and buy” </li></ul><ul><li>Made possible by invention of electricity, cables, computers modems and the internet </li></ul><ul><li>In 1991 the Internet was opened for commercial use </li></ul><ul><li>First E-Commerce Companies: Amazon.com and E-bay. </li></ul><ul><li>Gave way to a need for credit cards, online shopping carts and secure gateways </li></ul>
eBay <ul><li>Began in 1995 </li></ul><ul><li>Allows auctioning or fast sale of items </li></ul><ul><li>Large variety of items: cars, real-estate, collectibles, concert tickets, CD’s, clothing, DVD’s, art work and rare items </li></ul><ul><li>EBay is not only a site for commerce, but a community </li></ul>
Frequently Asked Questions.. <ul><li>Why is there E-bay? </li></ul><ul><li>Where is E-bay? </li></ul><ul><li>What is E-bay? </li></ul><ul><li>How does it work? </li></ul>
Assets of E-bay & E-commerce <ul><li>When receiving a service online, customers look for specific qualities in an business. </li></ul><ul><li>Comfort </li></ul><ul><li>Languages </li></ul><ul><li>Foreign currencies </li></ul><ul><li>Shipping abilities </li></ul>
Types of E-commerce that E-bay offers… <ul><li>Business to Business </li></ul><ul><li>* Wholesaling </li></ul><ul><li>Business to Customer </li></ul><ul><li>* Retail & Clearinghouse </li></ul><ul><li>Customer to Customer </li></ul><ul><li>* Any format </li></ul>
Outline of E-Bay.. <ul><li>Auction vs. Fixed Price Format </li></ul><ul><li>What is an E-Bay store? </li></ul><ul><li>How can you “Buy it Now” </li></ul><ul><li>AllGoodCauses – E-Bay Store </li></ul>
Conclusion <ul><li>In conclusion, without e-commerce their would be no eBay, without e-commerce there would be no online shopping, which gives consumers an alternative to finding time to go to the store in their hectic days. </li></ul>