E commerce

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Introduction to e-commerce
11/10/2012 at ITS Volterra Elia (Ancona)
Comenius Project New Ideas Factory
http://www.istitutovolterraelia.it/index.php?option=com_content&view=article&id=373&Itemid=342

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E commerce

  1. 1. New Ideas Factory - Italian Meeting E-commerce and online shoppingLayout by orngjce223, CC-BY Carlo Vaccari (University of Camerino , ISF , MZ , ...) vaccaricarlo@gmail.com http://vaccaricarlo.wordpress.com 1 Ancona, October 11 2012
  2. 2. Layout by orngjce223, CC-BY This material is distributed under the Creative Commons "Attribution - NonCommercial - Share Alike - 3.0", available at http://creativecommons.org/licenses/by-nc-sa/3.0/ Ancona, October 11 2012
  3. 3. index e-commerce: definition, characteristics, pros and cons Websites for e-commerce: make or buy Buy: Amazon EBay Make: Zen CartLayout by orngjce223, CC-BY Tips and threats 3 Ancona, October 11 2012
  4. 4. e-commerce definition Distributing, buying, selling and marketing products and services over electronic systems E-business for commercial transactions Involves supply chain management, e-marketing, online marketing, Electronic Data InterchangeLayout by orngjce223, CC-BY Uses electronic technology such as Internet 4 Ancona, October 11 2012
  5. 5. Traditional vs. e-commerce Traditional e-commerce Face to Face No personal contact Printed / written documents Documents on the web / multimedia Telephone communication E-mail communication Postal mail Social Network communicationLayout by orngjce223, CC-BY Ads: printed, radio, tv Ads: online, radio, tv Payment: cash, check or CC Payment: CC, direct, fund transfer Customer takes product home Deliver home 2-5 days 5 Ancona, October 11 2012
  6. 6. e-commerce and the internet The Internet is the perfect vehicle for e-commerce because of its open standards and structure No other methodology or technology has proven to work as well as the Internet for distributing information and bringing people together It’s cheap and relatively easy to use it as a mediumLayout by orngjce223, CC-BY for connecting customers, suppliers, and employees of a firm The only way that allow organizations to reach out to everyone 6 Ancona, October 11 2012
  7. 7. e-commerce categories Business originated from Business Customer Business B2B C2B And selling toLayout by orngjce223, CC-BY Customer B2C C2C 7 Ancona, October 11 2012
  8. 8. e-commerce categories Business to Business (B2B) refers to the full spectrum of e-commerce that can occur between two organizations (purchasing and procurement, supplier management, inventory management, channel management, sales activities, payment management &service and support) Examples: AirClic, SalesforceLayout by orngjce223, CC-BY Business to Consumer (B2C) refers to exchanges between business and consumers, activities tracked are consumer search, frequently asked questions and service and support Examples: Amazon, Yahoo 8 Ancona, October 11 2012
  9. 9. e-commerce categories Peer to Peer (C2C) exchanges involve transactions between and among consumers. Can include third party involvement, as in the case of Ebay Examples: Craigslist, Tinypay.me Consumer to Business (C2B) involves when consumers band together to present themselves as aLayout by orngjce223, CC-BY buyer in group Example: www.planetfeedback.com Now m-commerce (mobile) → shop anywhere anytime issues: devices – network speed - security 9 Ancona, October 11 2012
  10. 10. e-commerce pros Lower transaction costs Larger purchases per transaction Integration into the business cycle People can shop in different ways: build an order over several days configure products and see actual pricesLayout by orngjce223, CC-BY easily build complicated custom orders compare prices between multiple vendors easily Larger catalogs (Long tail!) Improved customer interactions - company 10 Ancona, October 11 2012
  11. 11. e-commerce potential cons To organizations: lack of security, reliability, standards, changing technology, pressure to innovate, competition, old vs. new technology To consumers: equipment costs, access costs, knowledge, lack of privacy for personal data, relationship replacementLayout by orngjce223, CC-BY To society: less human interaction, social division, reliance on technology, wasted resources, JIT manufacturing 11 Ancona, October 11 2012
  12. 12. e-marketing Website Online ads and promotions - banners, interstitials, sponsorship, viral marketing (buzzwords → word of mouth: video clips, images, texts: examples) Web communities - social networks (Facebook fan pages, Twitter lists), work-related communitiesLayout by orngjce223, CC-BY Email - problems: too many emails, spam See: http://www.emarketingassociation.com/ 12 Ancona, October 11 2012
  13. 13. how to sell online Make or buy choice Criteria/issues: Customers / Market Product standardization (+) LogisticsLayout by orngjce223, CC-BY Payment (CC, PayPal, others) Delivery: download, shipping, store pick-up Privacy / Security 13 Ancona, October 11 2012
  14. 14. Amazon model Started with books (paper and then e-books), then MarketPlace Selling on Amazon: see Guided process to 1. List your itemsLayout by orngjce223, CC-BY 2. Get orders 3. Ship 4. Get paid 5. Process refunds and returns Now also Amazon Webstore as a product you can install 14 Ancona, October 11 2012
  15. 15. EBay model Started with auction model (C2C) now also B2C and shops online Selling on EBay: see Set up a seller account Create your listing Manage your listingLayout by orngjce223, CC-BY Conclude with your buyer Now EBay store : see example From EBay started PayPal 15 Ancona, October 11 2012
  16. 16. Make choice Now many opensource tools available: see Example: Zen Cart (the art of Ecommerce): Open-source software: GPL license LAMP or WAMP platform: PHP - Apache – MySQLLayout by orngjce223, CC-BY on Linux or Windows server Many free templates available: see and here A lot of documentation, also on youtube 16 Ancona, October 11 2012
  17. 17. Zen Cart features - 1 Easy to install - our helpful installation program Template system using stylesheets and images. Sale options: percentage-off, fixed amount off, new price, etc. Products can be marked as free or Call for Price. Quantity discounts can be configured per-product for varying pricing levels or quantity levels.Layout by orngjce223, CC-BY Store layout can be controlled in great detail simply by switching settings (columns/box widths, sideboxes to appear where on the page, enable/disable links, ...) Sort order of products easily controlled Integrated with phpBB (forum) 17 Ancona, October 11 2012
  18. 18. Zen Cart features – 2 Site offline for maintenance, with notices and dedicated page, Override maintenance and access the site for testing. Multiple images to each products, in small/medium/large format. Popups available if desired for larger images Agreement to the Terms of Service Credit Card verification number support availableLayout by orngjce223, CC-BY Multiple shipping carriers supported Search options for products: name, description, metatags, price, .. Intelligent generation of metatags content for search engines. Built in WYSIWYG page editor for modifying pages Advanced Email management for marketing and audit trail 18 Ancona, October 11 2012
  19. 19. Zen Cart features – 3 Estimator for shipping costs prior to checkout Newsletter and product notification systems Tax rates, tax zones, etc easily configured in the Admin area PayPal™ and other popular merchant services supported Customers can write product reviews (moderated) Low stock notifications to administrator (level can beLayout by orngjce223, CC-BY configured) Scalable from small shops to larger shops with hundreds of thousands of products Track whos online interactively Multiple language/currency support 19 Ancona, October 11 2012
  20. 20. Supply Chain organizationLayout by orngjce223, CC-BY Not only a website: from the organizational point of view, the company/business has to plan many aspects! 20 Ancona, October 11 2012
  21. 21. Five tips to sell online 1. Build an effective shopping cart : shopping carts allow for more customization and the potential to provide more product information. 2. Recommend related products: use a "Recommendation engine" to suggest complementary products, upgrades and additional services 3.Optimize your site for search engines: a website cantLayout by orngjce223, CC-BY sell if it cant be found. (see) 4. Start a contest or promotion: an online contest or promotion can help attract attention in social media channels and in potential customers 5.Develop a shipping strategy: define clear prices strategy, between free and costly 21 Ancona, October 11 2012
  22. 22. Threats to e-commerce Digital divide: many consumers not ready Intellectual property issues: Patents - Copyright - trademarks Fraud: PhishingLayout by orngjce223, CC-BY Online auction fraud Spam Invasion to Customers privacy: Online profiling Clickstream data 22 Ancona, October 11 2012

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