Application of Information and
Communication Technologies
Lecture 15
M. Ali Shahid
Department of Computer Science
E-commerce:
Overview
E-commerce Basics
Business Applications
Global Trends; Impacts
Impacts on Market & Retailers
Impact on Supply Chain Management
Impact on Employment
Impact on Customers,
Impact on Environment
Impact on Traditional Retail
Distribution Channels.
E-Commerce Overview
E-commerce refers to the buying and selling of goods and
services via the internet.
Key Features:
Online transactions
Digital storefronts
Internet-based services and digital goods
E-Commerce Basics
Business Models:
B2C (Business to Consumer): Amazon, Walmart.
B2B (Business to Business): Alibaba, wholesale suppliers.
C2C (Consumer to Consumer): eBay, Craigslist.
C2B (Consumer to Business): Stock photo websites, freelance platforms.
E-commerce Platforms:
Shopify, WooCommerce, Magento
Payment Systems:
PayPal, credit cards, mobile wallets (Apple Pay, Google Pay)
Business Applications of E-Commerce
Retailing:
Online stores offering products to consumers.
Digital Goods:
Selling downloadable products (e.g., music, software).
Service Providers:
Freelancers, consultants, digital agencies.
Marketplaces:
Amazon, eBay connecting buyers and sellers.
Global Trends in E-Commerce
Mobile Commerce (M-Commerce): Growth in shopping via mobile
apps.
Social Commerce: Integration of shopping features in social media
platforms.
AI and Personalization: AI-powered recommendations for a
personalized shopping experience.
Omni-channel Retailing: Combining online and offline shopping
experiences.
Subscription Models: Services like Netflix, Spotify, and meal kit
subscriptions.
Sustainability: Increasing focus on green e-commerce, sustainable
practices, and eco-friendly products.
Impact on Market and Retailers
Market Expansion:
Access to global markets for small and large businesses.
Increased Competition:
Pressure on traditional retailers as e-commerce stores dominate.
Lower Overhead Costs:
E-commerce eliminates the need for physical stores, reducing operating costs.
Price Transparency:
Easy price comparison across brands.
Impact on Supply Chain Management
Automation: Use of AI, RFID, and drones for inventory
and logistics.
Faster Fulfillment: Shorter delivery times with next-day
and same-day shipping.
Global Sourcing: Increased access to international
suppliers and vendors.
Impact on Employment
Job Creation: Growth in tech, logistics, digital marketing,
and customer support jobs.
Job Losses in Retail: Decline in jobs in traditional retail
sectors as online shopping grows.
Gig Economy: Increased demand for delivery services
and flexible work arrangements.
Impact on Customers
Convenience: Shop 24/7 from anywhere with
a vast selection.
Informed Decisions: Easy access to reviews,
ratings, and product comparisons.
Personalization: Customized shopping
experiences based on preferences.
Security Concerns: Risks related to fraud, data
privacy, and payment security.
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Impact on Environment
Carbon Footprint: E-commerce's environmental impact
includes packaging waste and transportation emissions.
Sustainability Trends: Adoption of eco-friendly
packaging and carbon-neutral shipping.
Reduced Physical Store Footprint: Fewer physical stores
may reduce energy consumption.
Reverse Logistics: The impact of returns on
transportation and waste generation.
Impact on Traditional Retail
Decline in Foot Traffic: E-commerce's rise leads to
reduced visits to physical stores.
Adaptation: Brick-and-mortar stores integrating e-
commerce and omnichannel strategies.
Competitive Pricing: Traditional retailers pressured to
match online pricing.
E-Commerce Distribution Channels
Direct-to-Consumer (D2C): Businesses sell directly through
websites or apps.
Third-Party Marketplaces: Platforms like Amazon, eBay
enable wider reach.
Retail Partnerships: Collaborations between online and
physical stores (e.g., click-and-collect).
Dropshipping: Retailers sell products without holding
inventory, using third-party suppliers.
