IT 8309/CS 8308: E-

COMMERCE
Course Facilitator: Ms. Beatrice mayowela
Mob No: 0786888863
What is E-Commerce?
• E-commerce, or electronic commerce, refers to the buying and selling
of goods and services over the internet.
• E-commerce is also known as Electronic Commerce
• It involves the use of electronic platforms, such as websites, mobile
applications, and social media, to conduct transactions between
businesses and consumers or between businesses
What is E-business?
• E-business is the conduct of business on the Internet, not only buying
and selling but also servicing customers and collaborating with
business partners.
• E-business includes customer service (e-service) and intra-business
tasks.
• E-business is the transformation of key business processes through
the use of Internet technologies
• In 2022, the number of internet users worldwide stood at 5.3 billion,
which means that more than half of the global population is
connected to the web. This isn’t just changing consumer behavior;
it’s shaping the world economy at large.
Why E-Commerce
• One of the primary benefits of e-commerce is that it offers a more
convenient and efficient way to conduct business. Consumers can
browse and purchase products from the comfort of their own homes,
while businesses can reach a global audience without the need for a
physical storefront.
• E-commerce has also enabled businesses to streamline their
operations by automating many of the tasks involved in the sales
process, such as inventory management, order processing, and
shipping.
Types of E-commerce model:
• Business to Consumer (B2C): When a good or service is sold to an
individual consumer by a business, e.g., we buy a pair of shoes from an
online retailer.
• Business to Business (B2B): When a good or service is sold by a business to
another business, e.g., a software-as-a-service is sold by a business for
other businesses to use.
• Consumer to Consumer (C2C): When a good or service is sold by a
consumer to another consumer, e.g., we sell our old furniture on eBay to
another consumer.
• Consumer to Business (C2B): When a consumer’s own products or services
is sold to a business or organization, e.g., an authority offers exposure to
their online audience in exchange for a fee or a photographer licenses their
photo for a business to use.
Types E-commerce model…..
• Business-to-government (B2G): In this model, businesses sell
products or services to government agencies through online portals
or marketplaces.
• Government-to-business (G2B): Also known as e-government, In this
model, government agencies sell products or services to businesses
through online portals or marketplaces.
• Government-to-consumer (G2C): Also known as e-government. In
this model, government agencies provide products or services directly
to consumers through online portals or marketplaces.
• Government sites offering information, forms and facilities to conduct
transactions for individuals, including paying bills and submitting official forms
on-line such as tax returns
• The market potential of B2B e-commerce is huge. Globally, the B2B
ecommerce market was worth $12.2 trillion in 2019, having grown
from $5.8 trillion in 2013, according to Statista. Double-digit growth is
predicted for B2B ecommerce sales through 2024.
For B2B e-commerce to fulfill its potential, companies need an
e-commerce platform with these capabilities:
• Robust and flexible: Many companies operate in multiple business
models, from B2C to B2B to B2B2C and various combinations. The
solution should address all such scenarios in a single platform,
providing flexibility to opt for headless commerce and traditional e-
commerce and the ability to scale up without having to upgrade.
• Integration: Easy, seamless and real-time integration with existing
cloud and legacy applications.
• Omnichannel personalization: An omnichannel platform with cloud-
native architecture to provide personalization through context-driven
services to help define customer segments based on intuitive
conditions.
Features E-commerce site
• Product catalog: An e-commerce platform should provide an easy
way to create and manage a product catalog, including adding new
products, editing existing ones, and categorizing them.
• Shopping cart: A shopping cart is a tool that allows customers to add
products they want to purchase and keep track of the items as they
continue to browse the website.
Features E-commerce site…..
• Checkout and payment processing: A reliable checkout and payment
processing system is essential for e-commerce success. Customers
should be able to complete transactions quickly and easily using a
variety of payment methods.
• Shipping and order management: Once a customer places an order,
the e-commerce platform should provide tools to manage the order,
including tracking information, shipping options, and delivery status.
Features E-commerce site……
• Customer accounts and loyalty programs: Many e-commerce platforms
allow customers to create accounts, which can help businesses build
relationships and loyalty. Additionally, loyalty programs can incentivize
repeat purchases and encourage customers to refer others.
• Marketing and analytics: An e-commerce platform should offer tools to
help businesses market their products, such as email campaigns and social
media integration. Additionally, analytics can help businesses track
customer behavior, identify trends, and improve their overall strategy.
• Mobile optimization: With more people shopping on their mobile devices,
it’s essential that e-commerce platforms are mobile-optimized, with a
responsive design that provides an optimal shopping experience on
smartphones and tablets.
Advantages of E-commerce:
• E-commerce enables fast and secure shopping.
• It is making digitalized world.
• E-commerce also enables to choose different goods and services
according to your choice.
• It is a simple way of selling and buying products and services.
• E-commerce replaced the paper work as all transactions are through
internet today.
• It provides better management system, as it has a centralized
database.
• E-commerce via internet covers a large number of customers
worldwide.
• E-commerce has several payment modes.
Disadvantages of E-commerce:
• E-commerce has no universal standard for quality and reliability.
• E-commerce works through internet, it is possible that navigation on
internet itself may be slow.
• Strong security is required in e-commerce as all transactions are
through internet.
• There is high risk of buying unsatisfactory products through e-
commerce.
• It uses public key infrastructure which is not safe.
• Customers also trap in banking fraud which is quite frequent.
• Hackers also try to get access of data or to destroy data in e-
commerce.
Uses of E-commerce
• Online retail: One of the most well-known uses of e-commerce is
online retail, where businesses sell products directly to consumers
through their online store, website, or mobile app.
• Digital products and services: E-commerce is also commonly used for
the sale of digital products and services, such as music, e-books,
software, and online courses.
• Business-to-business transactions: E-commerce can be used for B2B
transactions, where businesses sell products or services to other
businesses.
Uses of E-commerce…..
• Online marketplaces: E-commerce marketplaces, such as Amazon
and eBay, provide a platform for businesses and individuals to sell
their products to a large audience.
• Auction sites: Online auction sites, such as eBay, allow users to bid on
and purchase items from other users.
• Online banking and financial services: E-commerce is used
extensively for online banking and financial services, including
payment processing, bill payment, and money transfers.
Uses of E-commerce……
• Online booking and reservations: E-commerce is used for booking
and reservations of flights, hotels, rental cars, and other travel-related
services.
• Food delivery: E-commerce platforms are used for online ordering
and delivery of food from restaurants.
• Online advertising: E-commerce is also used for online advertising,
where businesses can advertise their products and services to a large
audience.
Three type of goods you can sell online:
• Physical goods
The sale of physical goods is the exchange of monetary value for the
purchase of goods that are tangible and have physical mass, for example,
merchandize. Physical goods include both durable (think: cars, TVs,
furniture) and non-durable goods (e.g., food and beverages).
• Digital goods
The sale of digital goods involves the exchange of monetary value for
purchase of good that are intangible and exist in digital form, such as digital
media like audio files, video files, and e-books.
• Services
The sale of services involves the exchange of monetary value in return for
value to customers that want to achieve specific outcomes. Put another
way, a service is a means of delivering value to customers by facilitating
specific outcomes that customers expect to achieve. Examples of a service
include transportation, healthcare, and education.