E-commerce involves digitally enabled commercial transactions between organizations and individuals. It includes transactions mediated by digital technology and the exchange of value for products or services across boundaries. E-commerce has unique features like ubiquity, global reach, and personalization that have helped its growth. However, e-commerce also faces challenges like impersonal interactions and potential technology barriers. The document discusses various aspects of e-commerce such as definitions, features, drivers, and common misconceptions.
2. Slide 1-2
E-commerce involves digitally enabled
commercial transactions between and among
organizations and individuals
Digitally enabled transactions include all
transactions mediated by digital technology
Commercial transactions involve the
exchange of value across organizational or
individual boundaries in return for products or
services
3. Slide 1-3
Debate among consultants and academics
about meanings and limitations of terms e-
commerce and e-business
We use the term e-business to refer primarily
to the digital enablement of transactions and
processes within a firm, involving information
systems under the control of the firm
E-business does not include commercial
transactions involving an exchange of value
across organizational boundaries
5. E-commerce technology is different and more
powerful than any of the other technologies
that we have seen in the past century.
E-commerce has challenged much traditional
business thinking
E-commerce has a number of unique features
that help explain why we have so much
interest in e-commerce
6. E-commerce definitely enjoys some unique
features, which sets it apart from traditional
retail business model; these unique features
have also immensely helped in the growth of
e commerce business around the world.
14-Jun-14 ITM 3232.1 E Business 6
7. 1. Ubiquity
2. Global reach
3. Universal standards
4. Information richness
5. Interactivity
6. Information density
7. Personalization/customization
8. Social technology
14-Jun-14 ITM 3232.1 E Business 7
8. Breaks geographical barrier:
Unlike traditional retail business, e-commerce
is not bounded by geographical barriers.
Today an e commerce company can easily sell
its products to consumers residing in any part
of the country.
14-Jun-14 ITM 3232.1 E Business 8
9. Saves precious time:
Ecommerce helps in saving the most
important thing in today’s modern world:
‘Time’. Consumers from the comfort of their
home, office and even café can buy any
product they wish to buy. Thanks to e-
commerce, consumers save lot of precious
time that is otherwise wasted if they opt for
traditional shopping.
14-Jun-14 ITM 3232.1 E Business 9
10. Accurate information: Today e commerce
companies across the world are doling out
product information’s that are accurate & to the
point, which eventually helps consumers to make
better buying decision. These information’s are
free from all the inaccuracy & hidden facts that
are very much used by traditional retail models
as their selling strategy. Besides, e commerce
companies also provide accurate information to
customers about billing payment & shipping.
14-Jun-14 ITM 3232.1 E Business 10
11. Ubiquity: Ubiquity means state of being
everywhere at once. With unprecedented
growth in the sales of tablets & smart phones,
laptops and other internet related gadgets, e
commerce companies literally follow their
consumers wherever they go. E commerce
shopping can be done even when consumer is
walking or jogging.
14-Jun-14 ITM 3232.1 E Business 11
12. Impersonal interaction: Since e commerce
technology completely depends on internet &
web to reach to its customers, the interaction
with consumers will always be impersonal in
nature; as in it is not face-to-face interaction.
14-Jun-14 ITM 3232.1 E Business 12
13. Customers are truly king in the e
commerce world: Today every month
literally hundreds of e commerce companies
are popping up in every corner of the
world. This intense among E commerce
companies is only befitting customers, who
today have more choices to choose from and
discount vouchers to avail – for instance
Littlewoods Voucher Codes.
14-Jun-14 ITM 3232.1 E Business 13
14. Power of accessibility: Since today e
commerce is so easily accessible by the virtue
of power of internet, consumers can buy
anything & everything as and when they
desire for. In fact a mere impulsive desire or
slight craving for a product can lead to
expensive shopping, this is all thanks to
accessibility to shopping that is possible only
via e commerce technology.
14-Jun-14 ITM 3232.1 E Business 14
15. Cuts supply chain: E commerce technology
has immensely helped in cutting the
cumbersome supply chain of wholesale &
retail and also overreliance on sales force
team. This only helps in reducing the cost of
the product, which eventually benefits the
customer.
14-Jun-14 ITM 3232.1 E Business 15
16. Ever changing nature of business: Since
today technology is changing at lightening
speed by every passing day, the nature of e
commerce business will also change along
with it. Who knows technology development
in coming years will make e commerce more
customer friendly, or there can be other
fundamental changes to the e commerce
business too.
14-Jun-14 ITM 3232.1 E Business 16
17. Technology can equally be barrier: Technology
has helped e commerce companies to break
geographical & other barriers. However
overreliance on technology & complete absence
of face to face interaction has created immense
trust barrier between e commerce companies and
customers. This is especially true in the case of
conservative country like India where even today
people don’t completely trust e commerce
companies, especially when it comes to on line
payment
14-Jun-14 ITM 3232.1 E Business 17
18. Drivers that promote e-Commerce are:
Digital Convergence
Anytime, Anywhere, Anyone
Changes in Organization’s Make-up
Widespread Access to IT
Increasing Pressure on Costs & Profit Margins
Demand for Customized Products & Services
Speed or Time Reduction
14-Jun-14 ITM 3232.1 E Business 18
20. Digital convergence:
Digital devices can now communicate with
one another. The Internet made it all possible.
14-Jun-14 ITM 3232.1 E Business 20
21. The term "digital convergence" means the
ability to view the same multimedia content
from different types devices and thanks to the
digitization of content (movies, pictures,
music, voice, text) and the development of
connections methods.
14-Jun-14 ITM 3232.1 E Business 21
22. Anytime, anywhere, anyone:
This means that anyone can communicate
with the e-merchant or shop online 24 hours a
day from anywhere in the world.
14-Jun-14 ITM 3232.1 E Business 22
23. Changes in organizations:
Knowledge workers at the lower level in the
organization can now take on responsibilities
were once were relegated to lower or junior
managers. The focus is on empowerment.
14-Jun-14 ITM 3232.1 E Business 23
24. Widespread access to IT:
Globalization and surge in the demand for
information and communication for business
and pleasure placed IT in the frontline.
14-Jun-14 ITM 3232.1 E Business 24
25. Increasing pressure on operating costs and
profit margins:
E-Commerce addresses these concerns
quickly (efficiently), effectively and at low
cost.
14-Jun-14 ITM 3232.1 E Business 25
26. Demand for customized products and
services:
Today’s customers are expecting higher
quality and better performance regarding
products and services.
14-Jun-14 ITM 3232.1 E Business 26
27. 1. It’s Easy. Undoubtedly, there are
infomercials on after I go to bed that tout how
easy e-commerce is for anyone. But in reality,
there will be obstacles to overcome: customer
service fires that need to be put out, charge
backs that will require attention, and technical
issues you need to get help to solve. So it’s
not easy but is doable with persistence.
14-Jun-14 ITM 3232.1 E Business 27
28. 2. It’s Free. You get what you pay for and
nothing is free. You may be able to save
money doing many of the tasks yourself, such
as writing product descriptions, taking
product photos, and marketing. You will still
have a hosting bill, cost of goods, and fees for
processing credit cards.
14-Jun-14 ITM 3232.1 E Business 28
29. 3. No Experience needed. You may not need
e-commerce experience; however, experience
in starting a business, marketing,
merchandising and branding will all help you
succeed.
14-Jun-14 ITM 3232.1 E Business 29
30. 4. It’s not a business. E-commerce is e-
business which means this IS a business. You
need products or services, marketing,
company policies, accounting, IT, fulfillment,
customer support and more.
14-Jun-14 ITM 3232.1 E Business 30
31. 5. Manufacturer pictures will work. Stock
images show you as a copycat whenever
someone is searching for a specific product.
Take your own pictures and stand out from
the crowd.
14-Jun-14 ITM 3232.1 E Business 31
32. 6. Only price matters. Competing on price
has been successful for the few, but unrealistic
for the majority since it requires that you
generate a massive volume of sales for
substantial profit. Setting yourself apart as a
leader and authority, or offering stellar
customer service and ease of shopping, can
allow you to command a higher price.
14-Jun-14 ITM 3232.1 E Business 32
33. 7. Build it and they will come. Just like any
store, an online store needs traffic. And since
there is no foot traffic in the online world, you
need to get your internet marketing hustle on
to drive traffic to your online store.
14-Jun-14 ITM 3232.1 E Business 33
34. 8. Fraud. In the beginning you need to check
everything for potential fraud. Fraudulent
orders cut your profits and could put you out
of business; especially if you leverage drop
shipping.
14-Jun-14 ITM 3232.1 E Business 34
35. 9. Competition. Know who your competition
is before you open up shop. Like a hawk,
watch every move they make, so you don’t
get caught by surprise on anything. Google
alerts on company names is a good place to
start.
14-Jun-14 ITM 3232.1 E Business 35
36. 10. One year, one million dollars. I would
love to know where people get this one from.
It is possible to build a million dollar online
business in a few years; previous experience
in other e-commerce businesses is a huge
predictor of success though.
14-Jun-14 ITM 3232.1 E Business 36
