E-commerce is an emerging concept that describes the process of buying and selling or exchanging of
products, services, and information via computer networks including the internet.
Definition of E-Commerce from Different Perspective
1. Communications Perspective. the delivery of information, computer networks or any other electronic
means.
2 .Business Process Perspective. the application of technology toward the automation of business
transactions and work flow.
3. Service Perspective: E-commerce is a tool that addresses the desire of firms, improving the quality of
goods and increasing the speed of service delivery.
4. Online Perspective: E-commerce provides the buying and selling products and information on the
internet and other online services.
Unique Features of E-commerce Technology
Ubiquity:- In traditional commerce, a marketplace is a physical place you visit in order to transact. E.g,
television and radio .
Global Reach:- The potential market size for e-commerce merchants is roughly equal to the size of the
world’s online population.
Universal Standards:- One strikingly unusual feature of e-commerce technologies is that the technical
standard of the internet, an
Richness:- Information richness refers to the complexity and content of a message. Traditional markets
have great richness.
Information Density:- Information density is the total amount and quality of information available to all
market participants, consumers, and merchants alike.
Personalization/Customization:- E-commerce technologies permit personalization. M
There are a number of different types of E-Commerce:-
B2B - Business to Business.-----> -esteel.com
B2C - Business to Consumer------>Amazon.com
C2C - Consumer to Consumer.------>-eBay.com
P2P – Peer to Peer------>Gnutella
Mobile commerce------->PDAs(personal digital assistants) or cell phones
There are several limitations( disadvantage )of e-commerce
Expensive Technology:- Using the internet requires a $500 PC (minimal) and a $10/month connect
charge.
Complex Software Interface:- Using the web requires installation of a complex operating system and
application suite that is far more difficult to operate than a television or telephone.
Sophisticated Skill Set:- The skills required to make effective use of the internet and e-commerce
capabilitie, say, for television or newspapers.
Cultural Attraction and Social Event:- For many, shopping is a cultural and social event where people
meet directly with merchants and other consumers.
Limited Access of Technology:- Most of the world’s population does not have telephone service, PCs, or
cell phones.
There are several basic steps you will need to accomplish before becoming Commerce Enabled.
Getting a Merchant Bank Account
Web Hosting
Web Design Considerations
Registering a Domain Name
Obtaining a Digital Certificate
Business Model:- It is a set of planned activities(sometimes referred to as business process)designed to
result in a profit in a marketplace.
✓ is at the center of the business plan. A business plan is a document that describes a firm’s business
model.
An e-commerce business model aims to use and leverage the unique qualities of the Internet and the
World Wide Web.
Eight Key Components(Ingredients) of A Business Model
1. Value Proposition:- It defines how a company’s product or service fulfils the need of customers.
2. Revenue model
3. Market opportunity
4. Competitive environment
5. Competitive advantage
6. Marke strategy
7. Organizational development ---
8. Management team ----->
Revenue model example. Revenue sources
1. Advertising ----->Yahoo.com.
2. Subscription --->WLS.com,cosummere.org,sportline.com
3.Transaction fee----->eBay.com.E-Trade.com
4.Sales--->amazon.com,lLBean.com,Gap.com,sears. com,sears.com & JCPenny.com
5. Affiliate -->MyPoint.com
