Buying and selling of products or services over
electronic systems such as the Internet and other
The entire online process of developing, marketing,
selling, delivering, servicing and paying for
products and services.
Conducting e-commerce with individuals outside a
Establishing an electronic presence in the virtual
This is done by creating a website.
These pages contain the information that a
company wishes to share with others.
Includes catalogue of goods and services for sale.
Some of the successful elements of an e-commerce
website are -
displaying product information/pictures clearly
offering multiple payment options
providing telephone support
including postage & taxes in purchase price
giving a money back guarantee
working on a secure platform.
Figure : Transaction process
Customers typically need to:
generate and approve purchase orders
accept and verify deliveries
receive and approve invoices
link purchases into accounting, inventory
management, production control and/or other
Track status of orders, delivery dates and invoices
The portal proposes different articles from different brands offering the
consumer a large choice of products.
iTunes and Harvard Business Review
www.apple.com/itunes/store and www.hbsp.harvard.edu
User pays to get the entertainment content provided by the site.
The Content Providers
The user sells to the user by auctions.
THE E-AUCTION SITE
Inexpensive way to help customers and suppliers
find one another
Enhanced and simplified product selection
Consistent pricing in industries
Improved information transfers between customers
Improved post-sale service
Ex: Dell Computer now achieves around half its
sales from the Internet.
B2B E-Commerce is the electronic exchange of
business documents between businesses for the
purpose of conducting commerce.
Electronic Data Interchange (EDI) is a standard
format for exchanging business data between
The company sells computers to other companies via the internet. The
interaction can also be done via the phone.
Example 1: The e-auctions site
Wholesale retailers get in touch with business buyers and bargain over the
internet over the products. They can also enter in contact via the phone.
Example 2: The wholesale portal
Meet defined needs perceived as important by
Perform all activities in sales and distribution
process that are expected by customers
Provide additional value to customers as compared
to other competitors