4. Topics
Electronic Commerce
Electronic Commerce Categories
Development & Growth of Electronic Commerce
The Dot-Com Boom, Bust, and Re-birth
5. Electronic Commerce
To many people, the term “electronic commerce” means
shopping on the part of the Internet called the World Wide
Web (the Web).
However, electronic commerce (or e-commerce) also
includes many other activities, such as businesses trading
with other businesses and internal processes that
companies use to support their buying, selling, hiring,
planning, and other activities.
Some people use the term electronic business (or e-
business) when they are talking about electronic
commerce in this broader sense.
7. Categories (Cont’d)
Business-to-Consumer
It is also called B2C.
Business-to-consumer or B2C e-commerce consists of the sale
of goods and services to the general public.
In this type, customers or consumers can visit the website and
purchase goods online using credit cards.
Example
Dell selling me a laptop
Icson.com
9. Categories (Cont’d)
Consumer-to-Business
It is also called C2B.
Consumer-to-business e-commerce consists of the sale of
goods and services to the business organization via the website.
Example
Naukri.com
Priceline.com
11. Categories (Cont’d)
Business-to-Business
It is also called B2B.
Business-to-business or B2B takes place between two
businesses where one business provides services to other
businesses.
The business organization, also known as the manufacturer of
the products, sells products to wholesaler, and the wholesaler
re-sells them.
Example
Alibaba.com
13. Categories (Cont’d)
Consumer-to-Consumer
It is also called C2C.
Consumer-to-consumer or C2C e-commerce takes place
between two consumers where one consumer sells an item
through an online auction while the other consumer purchases
the item by offering the highest bid.
Example
eBay
OLX.com
15. Categories (Cont’d)
Business-to-Administration
It is also called B2A.
Business-to-administration or (B2A) takes place between
companies, public administration, or government agencies.
In this e-commerce business model, there are dealings between
companies and public administration using the internet.
Example
An excellent example of a B2A model is Accela; it’s a software
company that provides government software solutions and
public access to government services for permitting, planning,
licensing, public health, and so on.
17. Categories (Cont’d)
Consumer-to-Administration
It is also called C2A.
Consumer-to-consumer or C2A e-commerce business model
encompasses electronic transactions online between the
individuals and the public administration.
Example
Some of the examples of C2A are disseminating information,
distance learning, distribution of information through social
security, electronic tax filing, payment of health services, etc.
19. Development & Growth of E-Commerce
Electronic funds transfer
It is also called EFT.
Electronic funds transfer is the electronic transfer of money
from one bank account to another, either within a single
financial institution or across multiple institutions, via
computer-based systems, without the direct intervention
of bank staff.
20. Development & Growth of E-Commerce
(Cont’d)
Electronic data interchange
It is also called EDI.
Electronic Data Interchange is the electronic interchange of
business information using a standardized format; a process
which allows one company to send information to another
company electronically rather than with paper. Business entities
conducting business electronically are called trading partners.
21. Development & Growth of E-Commerce
(Cont’d)
Trading Partner
Electronic data interchange (EDI) occurs when one
business transmits computer-readable data in a standard
format to another business.
Businesses that engage in EDI with each other are called
trading partners.
22. Development & Growth of E-Commerce
(Cont’d)
Value-added Network
It is also called VAN.
VAN is third party link in EDI communication system.
A value-added network (VAN) is an independent firm that offers connection
and transaction-forwarding services to buyers and sellers engaged in EDI.
VANs provided the connections between most trading partners charged a
fixed monthly fee plus a per-transaction charge.
23. The Dot-Com Boom, Bust, and Re-birth
Dot-Com Boom
Between 1997 to 2000
Internet related businesses were started with more than $100
billion investors’ money
Dot-Com Bust
More than 5000 of the companies went out the business or were
acquired in the downturn that began 2000.
Dot-Com Rebirth
Between 2000 to 2003
More than $200 billion was invested in purchasing E-commerce
businesses that were in trouble & starting new online ventures.
24. The Dot-Com Boom, Bust, and Re-birth (Cont’d)
The Second Wave
Between 2000 and 2003:more than $200 billion was invested
in purchasing electronic commerce businesses that were in
trouble and starting new online ventures.
This second wave of financial investment has not been reported
extensively in either the general or business media, but it is
fueling a rebirth of growth in online business activity
Between 2008 and 2009 : Although the recession devastated
many traditional retailers, online sales continued to grow
during that period.B2C and B2B increasing growth rates
continue.
Driving force: people with Internet access increasing.