Lesson 1 for Ebiz subject

1. E-COMMERCE
DOING BUSINESS ONLINE
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2. Learning Goals
By the end of this courseware, the student is expected to:
1. Apply fundamentals of entrepreneurship in relation to
e-commerce;
2. Understand essential requirements to do business
and transact over the Internet;
3. Gain skills in using basic tools online to sell products
and services online;
4. Develop basic SEO skills in connection with setting up
an online store; and,
5. Learn marketing techniques and skills used by
business people online.
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3. LESSON 1
WHAT IS E-COMMERCE?
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4. LESSON 1: What is E-commerce?
At the end of this lesson, the student will be able
to:
1. Explain what e-commerce is and how it works.
2. Know the milestones and critical events in the
history of e-commerce.
3. Recognize the present and possible future
prospects for e-commerce.
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5. LESSON 1: What is E-commerce?
1. Defining E-commerce
2. E-commerce Timeline
3. The Changing Landscape
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6. LESSON 1: What is E-commerce?
Defining E-Commerce
E-commerce
• Refers to all forms of business transactions
conducted electronically over computer
networks, the Internet in particular
• While e-commerce typically means buying and
selling online, it is not limited to the basic
exchange of goods and services
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7. LESSON 1: What is E-commerce?
Defining E-Commerce
• It also involves many other activities and
procedures that are necessary to facilitate,
validate or consummate a given transaction.
• This includes the efficient interaction among
producers, consumers and their
intermediaries, and the swift flow of business-related
data across networks.
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8. LESSON 1: What is E-commerce?
Defining E-Commerce
Business Processes
• Create online store with automated systems
for accepting payment, shipping the product,
and providing customer service
• Implement an effective marketing strategy
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9. LESSON 1: What is E-commerce?
Defining E-Commerce
Business Models
All business activities in e-commerce can be
categorized into four major models, based on
which parties are engaged in the transaction
and based on the direction of the trade
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10. LESSON 1: What is E-commerce?
Defining E-Commerce
Business Models
1. Business to Business (B2B)
• refers to electronic trade that takes place between
companies
• consumers are not involved
• Ex. : producers buying components from suppliers and
manufacturers selling finished goods to distributors
• primarily responsible for keeping the supply chain intact
• constitutes the bulk of business transactions in e-commerce
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11. LESSON 1: What is E-commerce?
Defining E-Commerce
Business Models
2. Business to Consumer (B2C)
• simplest and most recognizable form of e-commerce
• online businesses sell goods and services to the general
public
• refers to the direct trade between companies and
consumers
• B2C is what the average person thinks of when “e-commerce”
is mentioned
• It is characterized by a line of shops which customers can
visit to purchase goods, just like in the traditional sense.
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12. LESSON 1: What is E-commerce?
Defining E-Commerce
Business Models
3. Consumer to Business (C2B)
• C2B is a rapidly growing trend in e-commerce.
• Consumers are now empowered to demand specific
goods and services from online businesses.
• Rather than passively choose a product from a given
catalog, customers can directly tell marketers their exact
requirements.
• Using this model, clients may even bid out a projected
sale to different sellers—the seller which can best satisfy
the given requirements gets the sale. Through C2B, e-commerce
has become a two-way street.
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13. LESSON 1: What is E-commerce?
Defining E-Commerce
Business Models
4. Consumer to Consumer (C2C)
• C2C showcases the egalitarian side of e-commerce.
• consumers are given a venue to trade among themselves
• It is not required to set up a proper business to sell. It’s
not even necessary to put up an online store. Anybody
can sell anything.
• All the seller has to do is post whatever it is that he or she
has for sale. People can negotiate and haggle, but in most
instances the buyer with the best bid gets to purchase
the product. Otherwise, prices are fixed and products are
sold on a first-come, first-served basis.
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14. LESSON 1: What is E-commerce?
Defining E-Commerce
Business Models
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15. LESSON 1: What is E-commerce?
Defining E-Commerce
Business Models
Peer to Peer (P2P)
• the most preferred mode of sharing information because it
allows computer terminals in a network to hook up without
having to go through a central web server
• not popular among online entrepreneurs because it is not
suitable for income generation.
• Because P2P was intended to be a means for the free
exchange of data, it lacks the necessary safeguards to
prevent piracy. As a result, a lot of people use P2P to share
music files and movies illegally.
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16. LESSON 1: What is E-commerce?
Defining E-Commerce
Business Applications
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ONLINE SHOPPING
ELECTRONIC PAYMENTS
ONLINE AUCTIONS
INTERNET BANKING
ONLINE BOOKING & TICKETING

17. LESSON 1: What is E-commerce?
E-Commerce Timeline
Electronic Data Interchange (EDI)
• facilitated the exchange of data—invoices,
purchase orders, shipping confirmations—
from one computer to another
Electronic Funds Transfer (EFT)
• used by banks to move huge amounts of
money digitally
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18. LESSON 1: What is E-commerce?
E-Commerce Timeline
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19. LESSON 1: What is E-commerce?
E-Commerce
Timeline
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20. LESSON 1: What is E-commerce?
The Changing Landscape
Emerging Trends
• Group buying or collective buying
• Social Commerce
• Private sample sale
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21. LESSON 1: What is E-commerce?
The Changing Landscape
Shifting Balance
The evolution of e-commerce is driven not
only by technology. More importantly, it is
fueled by how many people actually use it,
and the extent with which they have
embraced it as a part of their daily lives.
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22. LESSON 1: What is E-commerce?
Summary
E-commerce refers to all forms of business
transactions conducted electronically over
computer networks, the Internet in particular. It
has many different applications, the most
common of which include online shopping, online
auction and Internet banking. It continuously
evolves as technological advances are made and
new business trends emerge.
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23. LESSON 1: What is E-commerce?
Word Bank
E-commerce
short for electronic commerce; refers to all forms of business transactions
conducted electronically over computer networks
P2P
Peer to Peer; an e-commerce business model where data is exchanged
freely between computer terminals in a network without having to go
through a central web server programming language
M-commerce
Mobile commerce; electronic business transactions which are carried out
using a portable device, like a cellular phone
E-tailing
short for electronic commerce; refers to all forms of business transactions
conducted electronically over computer networks
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24. LESSON 1: What is E-commerce?
Word Bank
EDI
Electronic Data Interchange; a networking technology predating the
Internet that facilitated the exchange of data from one computer to
another
Browser
a computer interface used to access the Internet
World Wide Web
a system of linked hypertext documents
Group buying
also known as collective buying; a new business model where prices
are reduced when a minimum number of buyers make the purchase
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