E-commerce involves conducting business electronically over the internet. There are three main types: business-to-business, business-to-consumer, and consumer-to-consumer. E-commerce allows companies to reach a global market at low cost and speed up information flow. However, threats include security issues, theft of intellectual property, fraud, and invasion of consumer privacy. Businesses must ensure transactions are safe while being aware of legal and taxation implications in different jurisdictions.

1. Chapter 8

2. E-Commerce
 E-Commerce:
 Electronic commerce is conducting of business activities (e.g.
distribution, buying, selling, marketing and servicing of
products and services) electronically over computer networks
such as Internet, Extranets and corporate networks.
 Business to Business(B2B) E-Commerce:
 Sales of goods and services among businesses.
 Ex: Milpro.com, Milacron Inc’s website sells cutting tools, grinding
wheels and metal working fluids to more than 1,00,000 small
machining businesses.

3. E-Commerce
 Business to Consumer(B2C) E-Commerce:
 Retailing products and services to individual shoppers.
 Ex: Berner&Noble.com, which sell books, software and music
to individual consumers.
 Consumer to Consumer(C2C) E-Commerce:
 Consumers sell directly to consumers.
 Ex. Ebay (the giant auction site) allows people to sell their
goods to other consumers by auctioning the merchandise off
to the highest bidder.

4. Mobile Consumers
 M-Consumers:
 Relies on the use of wireless devices, such as personal digital
assistants (PDA), cell phones, and smart phones to place orders and
conduct businesses.
 Cybermall:
 A single website that offers many products and services at one
internet location.
 Meta Tag:
 A meta tag is a special HTML tag not visible on the displayed web
page, that contain keyword representing your site’s content which
search engine to use to build indexes pointing to your web site.

5. Mobile Consumers
 M-Consumers:
 Relies on the use of wireless devices, such as personal digital
assistants (PDA), cell phones, and smart phones to place
orders and conduct businesses.
 Cybermall:
 A single website that offers many products and services at one
internet location.
 Meta Tag:
 A meta tag is a special HTML tag not visible on the displayed
web page, that contain keyword representing your site’s
content which search engine to use to build indexes pointing
to your web site.

6. Electronic and Mobile Commerce
Applications:
 Retail and Whole sale:
 E-commerce is being used in retailing and wholesaling.
 E-tailing: Electronic retailing is the direct sale of product or services
by businesses to consumers through electronic storefronts.
 Manufacturing;
 Manufactures can form an electronic exchange to join with
competitors and suppliers alike using computers and web sites to
buy and sell goods, trade market information and control inventory.
 Marketing:
 Marketing organization can gather information about customer
behavior and preferences.

7. Electronic and Mobile Commerce
Applications:
 Auctions:
 eBay has become synonymous with online auctions for both
private sellers and small companies.
 Anywhere, Anytime Applications of Mobile com:
 Banking customers can use their wireless handheld devices to
access their accounts and pay their bills.
 information services such as financial news, sports
information, and traffic updates can be delivered to people
whenever they want.
 On the move retail consumers can place and pay for orders
instantaneously.

8. Advantage of E-Com and M-Com
 Global Reach:
 Allow manufacturers to buy at a low cost world wide and
offers enterprises to sell to a global market.
 Reduce Cost:
 By eliminating time consuming and labor intensive steps
throughout the order and delivery process more sales
can be completed in the same period and with increased
accuracy.

9. Advantage of E-Com and M-Com
 Speed the flow of Goods and Information:
 Information flow is accelerated.
 Increased Accuracy:
 By enabling buyers to enter their own product specifications
and order information directly, human data entry error on the
part of the supplier is eliminated.

 Improved Customer Service:
 Increased and more detailed information about delivery dates
and current status can increase customer loyalty.

10. Threats to E-Com and M-Com
 Business must deals with threats to ensure that e-
commerce and m-commerce transactions are safe and
consumer are protected.
 Security:
 Organization must provide sufficient security to protect
confidential and important data such as credit card use at the
time of purchase.
 Theft of Intellectual Property:
 Intellectual property includes works of the mind such as
books, films, music, processes and software.

11. Threats to E-Com and M-Com
 Digital Right Management:
 Refers to the use of any of several technologies to
enforce policies for controlling access to digital media
such as movies, music and software.
 Lack of Internet Access:
 The lack of universal internet access makes it impossible
to conduct e-commerce with many of the world’s people.

12. Threats Continue…
 Fraud:
 There are a no. of fraud types.
 Some bogus message are sent to Internet users by
offering something (such as you won ten millions dollar)
to collect their confidential data(credit card no., ID,
address).
 Many people received pleas from desperate Nigerians
trying to enlist their help in transferring funds out of
their country.

13. Threats Continue…
 Invasion of Consumer Privacy:
 Web advertisers records online behavior for the purpose of
producing targeted advertising.
 So online consumers are more at risk today than ever before.
 Legal Jurisdiction:
 Companies engaging in e-commerce must be careful that
their sales do not violet the rules of various country, state or
country legal jurisdiction.
 Taxation:
 Business and consumers must be aware of taxation issues
when conducting e-commerce.