2. Table of Contents
1. E-Commerce overview
1.1 Definition of e-commerce
1.2 Brief history of e-commerce
2. E-Commerce categories
2.1 Two major categories
2.2 Other categories
3. Benefits of e-commerce
3.1 Benefits to organizations
3.2 Benefits to consumers
4. Business applications
5. Online shopping
6. Interesting facts and figures
7. Summary and Conclusion
8. References
4. Definition of E-Commerce
E-Commerce or Electronic commerce is a
process of buying, selling, transferring, or
exchanging products, services, and/or
information via electronic networks and
computers
5. 5
‘Formulating commercial transactions at a
site remote from the trading partner and
then using electronic communications to
execute that transaction.’
The definition includes business to
business and business to consumer
transactions.
Definition of E-Commerce
6. Brief History of E-Commerce
1970s
E- commerce meant the facilitation of
commercial transactions electronically, using
technology such as Electronic Data
Interchange (EDI) and Electronic Funds
Transfer (EFT), allowing businesses to send
commercial documents like purchase orders
or invoices electronically.
7. Brief History of E-Commerce (cont)..
1980s
The growth and acceptance of credit cards
Automated teller machines (ATM)
Telephone banking
Airline reservation system
2
8. Brief History of E-Commerce
(cont)..
1990s
The Internet commercialized and users
flocked to participate in the form of dot-coms,
or Internet start-ups
Innovative applications ranging from online
direct sales to e-learning experiences
9. Brief History of E-Commerce
(cont)..
2000s
Many European and American business
companies offered their services through the
World Wide Web.
Since then, People began to associate a word
“e-commerce”
11. Two Major Categories
Business-to-consumer (B2C) :
Online transactions are made between
businesses and individual consumers. E.g.
Amazon.com, eBay.com.
Business-to-business (B2B):
Businesses make online transactions with other
businesses.
15. Benefits to consumers
More products and services
Cheaper products and services
Instant delivery
Information availability
Participation in auctions
16. Business applications
Email
Instant messaging
Online shopping and order tracking
Online banking
Shopping cart software
Teleconferencing
Electronic tickets
17. Online Shopping
Online shopping is the process of buying
goods and services from merchants who
sell on the Internet
Online consumers are evenly split
between men and women and tend to be
better educated, younger, and more
affluent than the general population
21. Interesting Facts and Statistics
Every 1.2 seconds, a Canadian makes a
purchase with their PayPal account
Almost 20 per cent of Canadians make three or
more online purchases per month (comScore
2009).
8
22. Interesting Facts and Statistics
(cont..)
Ninety per cent of Canadians do their
online shopping exclusively from home
and only one per cent of Canadians shop
online exclusively from work (comScore
2009).
Experts predict that online sales will reach
US$328 billion by 2010
23. 23
E-Commerce technologies
The three e-Commerce technologies
are:
Electronic Markets
Electronic Data Interchange
Internet Commerce
Electronic
Markets
Internet
Commerce
EDI
24. 24
Electronic markets
The use of information and
communications technology to present a
range of offerings available in a market
segment and hence enable:
the purchaser to compare the prices (and
other attributes);
make a purchase decision.
The usual example of an electronic market
is an airline booking system.
25. 25
Electronic markets
There is the potential for new electronic
markets to be created using Internet
technologies.
26. 26
Electronic Data Interchange (EDI)
EDI provides a standardised system
for coding trade transactions so that
they can be communicated directly
from one computer system to another.
EDI removes the need for printed
orders and invoices and avoids the
delays and errors implicit in paper
handling.
27. 27
Electronic Data Interchange (EDI)
EDI is used by organisations that
make a large number of regular
transactions. Examples are the large
supermarket chains and the vehicle
assemblers which use EDI for
transactions with their suppliers.
28. 28
Internet commerce
Information and communications
technologies can also be used to advertise
and make once-off sales of a wide range
of goods and services.
This type of e-Commerce is typified by the
commercial use of the Internet. The
Internet can, for example, be used for the
purchase of books that are then delivered
by post or the booking of tickets that can
be picked up by the clients when they
arrive at the event.
29. 29
Internet commerce
It is to be noted that the Internet is not the
only technology used for this type of
service and this is not the only use of the
Internet in e-Commerce.
30. 30
The trade cycle
Conducting a commercial transaction involves
the following steps:
Pre-Sale:
Search - finding a supplier
Negotiate – agreeing the terms of trade
Execution:
Order
Delivery
Settlement:
Invoice
Payment
After-sales, e.g. warrantee and service