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  1. 1. E - Commerce© Ramakrishna Kongalla,Assistant ProfessorRtist @ Tourism
  2. 2. E - commerce• E-commerce, in the popular sense, can be defined as:– the use of the Internet and the Web to conduct businesstransactions.• A more technical definition would be:– e-commerce involves digitally enabled commercialtransactions between and among organizations andindividuals.• E-commerce differs from e-business in that no commercialtransaction, an exchange of value across organizational orindividual boundaries, takes place in e-business.• E-business is the digital enablement of transactions andprocesses within a firm and therefore does not includeany exchange in value.Rtist @ Tourism
  3. 3. • E-commerce and e-business intersect at thebusiness firm boundary at the point whereinternal business systems link up with suppliers.– For instance, e-business turns into e-commerce whenan exchange of value occurs across firm boundaries.• information asymmetry– Information asymmetry refers to any disparity inrelevant market information among the partiesinvolved in a transaction. It generally applies toinformation about price, cost, and hidden fees.Rtist @ Tourism
  4. 4. The unique features of e-commerce technology include:– Ubiquity: It is available just about everywhere and at alltimes.– Global Reach: the potential market size is roughly equalto the size of the online population of the world.– Universal standards: The technical standards of theInternet, and therefore of conducting e-commerce, areshared by all of the nations in the world.– Richness: Information that is complex and content richcan be delivered without sacrificing reach.– Interactivity: E-commerce technologies allow two-waycommunication between the merchant and theconsumer.Rtist @ Tourism
  5. 5. – Information density: The total amount andquality of information available to all marketparticipants is vastly increased and is cheaperto deliver.– Personalization/Customization: E-commercetechnologies enable merchants to target theirmarketing messages to a person’sname, interests, and past purchases. Theyallow a merchant to change the product orservice to suit the purchasing behavior andpreferences of a consumer.– Social technology: User content generationand social networking technologiesRtist @ Tourism
  6. 6. a marketspace:• A marketspace is a marketplace that isextended beyond traditional boundariesbecause it is removed from the restrictions ofgeography and time. The ubiquity of e-commerce technologies liberates the marketfrom these limitations.Rtist @ Tourism
  7. 7. • Web 2.0 is a set of applications and technologies thatallows users to create, edit, and distribute content;share preferences, bookmarks, and online personas;participate in virtual lives; and build onlinecommunities.• Web 2.0 is the set of new, advanced applications thathave evolved along with the Web’s ability to supportlarger audiences and more involved content.• Like Facebook, MySpace, YouTube, Photobucket,Google, Wikipedia, Second Life, Digg, and WordPressetc.Rtist @ Tourism
  8. 8. B2C: E-tailers:• Bluefly••••• REI.comB2C: Service Providers:• Expedia• TravelocityB2C: Portals:• YahooB2C: Content Providers:•• Consumerreports.comB2B:•• Ariba• PerfectCommerce• QuadramC2C:•• Velvetbazaar• Ubid• Oldandsold• EwantedP2P:• Streamcast Networks•• FrostwireRtist @ Tourism
  9. 9. Evolution of e-commerce• The three stages– Innovation took place from 1995 and was characterizedby excitement and idealistic visions of markets in whichquality information was equally available to both buyersand merchants. However, e-commerce did not fulfillthese visions during its early years.– After 2000, consolidation : In this stage, moretraditional firms began to use the Web to enhance theirexisting businesses. Less emphasis was placed oncreating new brands.– In 2006, though, e-commerce entered its currentstage, reinvention, as social networking and Web 2.0applications reinvigorated e-commerce and encouragedthe development of new business models.Rtist @ Tourism
  10. 10. major limitations on the growth of e-commerce:– the price of personal computers.– the need for many people to learn complicatedoperating systems– The unlikelihood that the digital shoppingexperience will ever replace the social and culturalexperience that many seek from the traditionalshopping environment.– persistent global income inequality will excludemost of the world’s population, who do not haveaccess to telephones or PCs.– Social and cultural limitations are likely to betougher to overcome than technological limitations.Rtist @ Tourism
  11. 11. The five primary revenue models used by e-commerce firms are:– advertising model derives its profit by displaying paidadvertisements on a Web site. The goal is to convince advertisersthat the site has the ability to attract a sizeable viewership, or aviewership that meets a marketing niche sought by the advertiser.– the subscription model offer users access to some or all oftheir content or services for a subscription fee.– the transaction fee model derive profit from enabling or executingtransactions. For instance, transaction fees are paid to eBay whena seller is successful in auctioning off a product, and E*Tradereceives a transaction fee when it executes a stock transaction fora customer.– the sales revenue model, companies draw profit directly from thesale of goods, information, or services to consumers.– the affiliate model, sites receive referral fees or a percentage ofthe revenue from any sales that result from steering business tothe affiliate.Rtist @ Tourism
  12. 12. Thank You…!!!©Ramakrishna Kongallae-mail: artist.ramakrishna@gmail.comRtist @ Tourism