What is Electronic Commerce?
Electronic business/ electronic commerce:
Business process, or collection of business processes,
conducted using Internet technologies.
Includes all the processes and requirements that
companies do to achieve their objectives.
Benefits of e-commerce
Access to global market
Cutting out the middle man
Greater customer satisfaction
Reduced marketing cost
Better customer information
A participant-based electronic commerce: based on the
types of participants in the process.
Participants might be businesses, consumers, or
Business-to-consumer (B2C) electronic commerce: a
process undertaken by a company to sell goods or services
Business-to-business (B2B) electronic commerce:
process processes selling goods or services to
other business firms.
Business-to-government (B2G): processes of
dealing with government agencies.
Consumer-to-consumer (C2C): processes use by
individuals who are not operating formal
businesses to conduct transactions.
Activity-based electronic commerce classification
scheme: organized by what the business activities
are designed to accomplish.
Business Model: includes the way a company
does business, the sum of its business activities
Revenue Model: the business processes that a
company uses to find new customers, make sales,
and deliver the goods or services that it sells.
Operations Model: the other business processes
in a company, such as purchasing, hiring,
receiving, and manufacturing.
Electronic commerce activities are designed to
improve a company’s revenue processes; to
reduce the cost or increase the efficiency of its
Companies conduct business on the Web should
try to follow the ethical standards as they were
doing business in the physical world.
High ethical standards can establish a company’s
reputation and increase the level of trust of
customers, suppliers, and employees.
Lack of ethical practices can cause immediate
damage to a company’s reputation.
Participants in electronic commerce have two
1. Transaction security
2. Non violation of their privacy
Future of Electronic Commerce
Many businesses, organizations and individuals are
interconnected via the Internet.
The Web provides an easy-to-use interface.
The combination of the Web’s interface and the Internet
computer networking opens new opportunities for e-
Companies use Web strategies to generate
revenues, increase operational efficiency, and
Emergence of new Web-based business models.
E-commerce companies have taken steps to
reassure consumers of their transaction security
and their privacy.
E-commerce operates in an international, legal
and ethical environment.