E-business and e-commerce

A. Introduction: Collocations with electronic

What do the following expressions 'electronic' + noun stand for?

e-banking
e-business

e-commerce

e-learning

e-government
e-frastructure

e-tailer

e-cash

e-society

e-living

B. Creating an online shop

Benefits and pitfalls of selling online
Selling online has a number of advantages over selling by conventional methods. However,
many e-commerce websites fail because of basic mistakes that are easily rectified.
In the list below identify advantages (A) of selling online and potential pitfalls (P):

a.

Making savings in set-up and operational costs. You don't need to pay shop assistants,
rent high-street premises, or answer a lot of pre-sales queries. A / P

b. Reducing order-processing costs - customer orders can automatically come straight into
your orders database from the website. A / P
c. Reaching a global audience, thereby increasing sales opportunities. A / P
d. Out-of-date or incorrect information. A / P
e. Poor visual design. A / P
f.

Competing with larger businesses by being able to open 24/7. A / P

g. Being able to receive payment more quickly from online transactions. A / P

h. Attracting customers who would not normally have investigated your type of high-street
outlet. A / P
i.

Difficult site navigation and purchasing processes. A / P

j.

Poor customer fulfilment and late delivery. A / P

k. Lack of customer support. A / P

l.

Lack of business information. A / P

m. Improving your offerings using the data gathered by tracking customer purchases. A / P
n. Using your online shop as a catalogue for existing customers. A / P

Having identified the pitfalls, i.e., potential areas that customers will be put off by, think about
which of the recommendations below refer to each of the problems.
Handout 4, Engleski jezik 2, PITUP; A.K., 2009/10-NP

Creating an online shop: Recommendations

Online selling will work best for you if you have:

well-defined products or services that can be sold without human intervention in the
sales process

fixed prices for all types of potential customers

products or services that can be delivered within a predictable lead time

So it is essential to:

Make sure all information on your website, especially on prices, is up to date.

Monitor the information you provide on a regular basis.

Make it easy to find and purchase products.

Make sure that resources and procedures are in place to support your website. This
will ensure that orders can be processed promptly, emails can be responded to quickly
and helplines are manned by the appropriate staff at reasonable times.

Have your website professionally designed.

e. Poor visual design.

C. Customers online shopping perception

Handout 4, Engleski jezik 2, PITUP; A.K., 2009/10-NP

Among factors which affect consumer acceptance of online shopping, the following items
have been identified: 1) personal innovativeness of information technology; 2) Internet
self-efficacy; 3) perceived Web security; and 4) personal privacy concerns. Their inuence
varies additionally according to product types.

Look at the statements below. Which of the categories 1-4 above do they belong to?

Do they apply to you?

a.

___In general, I am hesitant to try out new information technologies.

b.

___ I could easily use the Web to nd product information on a product/service.

c.

___ I feel safe providing personal information about me to Web retailers.

d.

___ Web is safe environment to provide personal information.

e.

___ Among my peers, I am usually the rst to try out new information technologies.

f.

___ Computer databases that contain personal information should be protected

from unauthorized access no matter how much it costs.

g.

___ It usually bothers me when companies ask me for personal information.

h.

___ I like to experiment with new information technologies.

i.

___ I would be able to use Web on my own to locate retail sites.

j.

___ I feel secure sending personal information across the Web.

k.

___ When companies ask me for personal information, I sometimes think twice
before providing it.

l.

___ I feel comfortable searching with World Wide Web on my own.

m.

___ It bothers me to give personal information to so many companies.

n.

___ Companies should never sell the personal information in their computer
databases to other companies.

D. E-business and e-commerce: Basic concepts

Handout 4, Engleski jezik 2, PITUP; A.K., 2009/10-NP

Find pairs of related words or expressions among the following.

Hint: A word in bold type should go with amother word in italics!

Example: retail wholesale

the new economy

online purchasing

a company/firm

a business

profitable

generate revenue

wholesale

log on to the Web

Internet-retailer/shop

accelerated by

to boost
the target of the exchange

to improve

Internet shopping

successful

a potential customer

fuelled by

to trade

to increase

retail

exchanges

to sell and buy

transactions

Internet-related goods

the Internet economy

music, video, books etc.

make profit
to grow

an Internet-based company
e-tailer

Web/Internet access
a dot-com/a dot.com

1. When the Internet was in its infancy, words like e-business and e-commerce had not
yet been invented. Now the Internet has become such an integral part of the business
world that experts had to create a special phrase the new economy for its
contribution to the economy. The new economy, also known as the Internet economy,
consists of businesses that generate all or some of their revenues from the Internet or
Internet-related goods and services.

Handout 4, Engleski jezik 2, PITUP; A.K., 2009/10-NP

2. Both e-commerce and e-business are parts of the new economy. The exchange
transactions that take place on the Internet (such as buying, selling or trading goods,
services and information) are known as e-commerce. E-business is a broader term
covering the combination of business processes, organizational structures and
technology needed for e-commerce.
3. E-businesses such as Yahoo! and Amazon.com were e-commerce pioneers, attracting
the public imagination with their ingenious presentations and innovative use of Internet
technology. Yet some of today's most successful and profitable e-businesses are not
even dot.coms (Internet-based businesses). IBM and Dell are two of the growing list of
traditional firms that now use the Web to improve internal processes, boost sales and
satisfy customers.
4. What comes to mind when we think of e-commerce? Amazon.com, perhaps? Well, ecommerce is much more than e-tailers (Internet retailers). It is made up of exchanges
among businesses, consumers and government agencies, which can be classified
according to which party initiates and controls the exchange transaction and which
party is the target of the exchange. For instance, there are B2C businesses. That means
'business to customer', which means companies that don't sell to other companies, but
customers only. Furthermore, B2B refers to businesses selling to businesses, whereas
B2G refers to businesses providing service to various public and administrative
institutions. Finally, C2C stands for individual people (customers) selling to each other
online.

5. Not only does this world-wide shopping operate 24 hours a day, 365 days a year, but it
is also convenient because people can browse through online catalogues, compare prices
easily, read reviews etc. There is also less paperwork, so it's cheaper for the retailer.
Needless to say, these savings can be passed onto the consumer.
6. What do e-tail stores need to succeed? First of all, the retailer needs to build consumer
confidence. You need a website that is easy to navigate and it must download quickly.
Handout 4, Engleski jezik 2, PITUP; A.K., 2009/10-NP

The categories should be easy to understand. You also need customer support services,
things like FAQs (i.e.frequently asked questions, pronounced F-A-Q), information about
the order, as well as guarantees about delivery. Finally, a secure server for transactions
using credit cards and a privacy policy are very important too.
7. U.S. consumers, businesses and government buyers have been steadily increasing their
online purchasing since the early 1990s a trend that will only accelerate as more people
and organizations log on to the Web. The top product categories for online purchasing
are computer hardware and software, securities investments, as well as music, video and
books.
8. The monetary value of European e-commerce is not yet at the U.S level, but it is
growing rapidly, fuelled by fast-rising Internet usage, the shift to a single currency (the
euro), and the new wireless methods of Web access. It is predicted that in future e-tail
stores will use virtual reality to sell their goods, which is going to generate billions of
euros.

E. Vocabulary practice
Matching words and definitions
On previous pages, find the words / phrases in each paragraph that fit each definition or
description given in the table.
Paragraphs 1/2
Handout 4, Engleski jezik 2, PITUP; A.K., 2009/10-NP

Word/phrase:

Definition:
to make, produce
the money that an organization receives from its business
childhood; early days
an action that helps make something better
essential part of something
to create
the infrastructure and operations needed for doing business
more general
to buy and sell; to operate as a business
to include

Paragraphs 3/4
Word/phrase:

Definition:
meet one's expectations
creative, original
concerning the company's own affairs
full of clever new ideas
the first people to do something new
however, but
one of two sides taking part in something
to sell through the Internet
a person or business that sells goods to the public
not owned by a private person
to give service
to start
consists of
goal

Paragraphs 5/6
Word/phrase:

Definition:
to work
a customer, client
a report in which someone gives their opinion about a product
practical, handy
to trans'fer
to read, go through, search
warranty
to move through
a set of principles
help desk
safe

Paragraphs 7/8
Word/phrase:

Definition:
to begin using a computer system
without stopping
documents proving that somebody is the owner of shares, etc. in a

Handout 4, Engleski jezik 2, PITUP; A.K., 2009/10-NP

particular company
to speed up
leading, number one
a change
the same system of money used by several countries
adjective related to money
images created by a computer that appear to surround the person
looking at them and seem almost real
to express ideas about future

Collocations - Words that go together

A. Verb-noun collocations
Example:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

satisfy + customers

boost + sales

satisfy
create/invent
generate
log on to
buy, sell and trade
boost
transactions
initiate and control
attract
increase
improve

goods and services

sales
a phrase/term
the public imagination
take place on the Internet
a transaction
processes
the Web
revenue
customers
purchasing

B. Adjective-noun collocations
Example:
1.
2.
3.
4.
5.
6.
7.

innovative + use of technology

integral
wireless
ingenious
online
profitable
single
organizational

Handout 4, Engleski jezik 2, PITUP; A.K., 2009/10-NP

structure
presentation
e-businesses
Internet usage
part of the business world
methods of Web access
use of technology
8

8. traditional
9. fast-rising/increasing
10. innovative

currency
purchasing
firms

Which word fits best?

e-commerce
e-commerce
business-to-consumer

checkout
bricks-and-mortar
electronic cart

clicks-and-mortar

business
e-business

1. A business with no online presence is a ______________________organization. At the opposite

extreme,

few

virtual

businesses exist

only

online.

But

most

businesses

are

_____________________ they have some part of their business on the web, but also physical
premises.
2. The phrase ____________________refers to the part of e-business related to buying and
selling. Retailers set up an electronic storefront (BrE shop front) and shoppers place items they
want to buy in an ____________________ (BrE trolley). When the shopper is ready, they go to
the ________________ where their payment is processed.
3. Whereas in e-commerce, information and communications technology (ICT) is used in interbusiness

or

inter-organizational

transactions

(transactions

between

and

among

firms/organizations) and in ___________________________ transactions (transactions between

firms/organizations and individuals), in e-business ICT is used to enhance ones _____________.
4. ___________________is the use of electronic communications and digital information
processing technology in business transactions to create, transform, and redefine relationships
for value creation between or among organizations, and between organizations and individuals.
5. _________________ is the transformation of an organizations processes to deliver additional
customer value through the application of technologies, philosophies and computing paradigm
of the new economy.

Handout 4, Engleski jezik 2, PITUP; A.K., 2009/10-NP

Translation practice.

Translate the following sentences from the text. Pay special attention to underlined
words:

a.

Yet some of today's most profitable e-businesses are not even dot.coms.

b.

They can be classified according to which party initiates and controls the exchange
transaction and which party is the target of the exchange.

c.

That means 'business to customer', which means companies that don't sell to other
companies, but customers only.

d.

Furthermore, B2B refers to businesses selling to businesses, whereas B2G refers to

businesses providing service to various public and administrative institutions. Finally, C2C
stands for individual people (customers) selling to each other online.

e.

Needless to say, these savings can be passed onto the consumer.

f.

E-tail stores will use virtual reality to sell their goods, which is going to generate billions
of euros.

Noun groups: Word order

Put the items in BLOCK LETTERS in the correct order to form terms frequently used in the
context of e-business and e-commerce. Sometimes it is not necessary to make any changes.

Most B2B applications are in the areas of MANAGEMENT SUPPLIER, especially PURCHASE
ORDER PROCESSING), inventory management, distribution management (especially in the
transmission of shipping documents), channel management (i.e., INFORMATION CHANGES IN
DISSEMINATION ON OPERATIONAL CONDITIONS), and payment management (e.g.,
PAYMENT ELECTRONIC SYSTEMS or EPS).
Three primary processes are enhanced in e-business: 1) Production processes, which include
ORDERING, REPLENISHMENT PROCUREMENT AND of stocks; processing of payments;
Handout 4, Engleski jezik 2, PITUP; A.K., 2009/10-NP

10

electronic links with suppliers; and PRODUCTION PROCESSES CONTROL, among others; 2)
Customer-focused processes, which include promotional and marketing efforts, selling over the
Internet, ORDERS AND PROCESSING OF CUSTOMERS PAYMENTS PURCHASE, and
customer support, among others; and 3) INTERNAL MANAGEMENT PROCESSES, which
include

employee

services,

training,

INTERNAL

INFORMATION-SHARING,

video-

conferencing, and recruiting.

F. Phrasal verbs
Decide what the missing item is in each of the examples below.

Creating an online shop: Defining how the business will develop

"Before setting ____________ our online shop we used to sell our products direct to other
businesses through catalogues and sales representatives. In order to get the most out of our new
sales channel we drew ____________ a brief covering what we wanted to achieve.
"We decided that raising turnover and opening _________________new sales channels were the
key objectives. But we also wanted the website to help us convert more enquiries into sales. We
got so many enquiries by phone and email, which took _____________ a lot of our time to
process. We found that we were losing _________________as we did not have an automated
process to capture these potential customers.
"Having identified these areas the online shop has really helped us to refocus our business plan.
Turnover is up by several hundred thousand pounds a year and we've opened ______________
new sales channels - we got a 70,000 order from South Korea just a week after the site's
launch."

Travel on the Net

Complete this newspaper article by choosing the correct item from those in brackets.
Larry Diller, Chief Executive of E-travel, stepped (1) _________ (down / off / out)
yesterday in a dramatic move for the online travel agency. Revenues of E-travel are
currently 15% down on the same period last yeat, and they've had to cut (2)
_______________ (off / up / back) their advertising budget severely. Earlier in the year
E-travel laid (3) ____________ (off /up / out) a quarter of its staff in a bid to keep costs
(4) ______________ (off / down / out)., but these measures were not enough to make the
company profitable. Diller had been in negotiations with the internet portal YoHo to get
Handout 4, Engleski jezik 2, PITUP; A.K., 2009/10-NP

11

exclusive rights to advertise on their site, but the deal fell (5) _______________ (off /
through / out) at the last minute. It seems that this news finally forced investors to call
for Mr Diller's resignation. E-travel's finance officer Martha Piper will now take (6)
_________ (through / up / on) the task of trying to sort (7) ____________(over / up / out)
their problems, but the most likely outcome is that E-travel will be taken (8)
_____________ (over / up / out) by another company, perhaps another rival HiFly.com.

Sources:
Z. R. Andam: E-business and e-commerce,
http://www.apdip.net/publications/iespprimers/eprimer-ecom.pdf
L. Tzu-Ming Lin, L. Jiunn-Woei: Eects of consumer characteristics on their
acceptance of online shopping: Comparisons among dierent product types, Computers
in Human Behavior 24 (2008) 4865
http://www.businesslink.gov.uk

Handout 4, Engleski jezik 2, PITUP; A.K., 2009/10-NP

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Key:
Creating an online shop
Benefits of selling online
Selling online has a number of advantages over selling by conventional methods, including:

Making savings in set-up and operational costs. You don't need to pay shop assistants, rent high-street
premises, or answer a lot of pre-sales queries.
Reducing order-processing costs - customer orders can automatically come straight into your orders
database from the website.
Reaching a global audience, thereby increasing sales opportunities.
Competing with larger businesses by being able to open 24 hours a day, seven days a week.
Being able to receive payment more quickly from online transactions.
Attracting customers who would not normally have investigated your type of high-street outlet.
Improving your offerings using the data gathered by tracking customer purchases.
Using your online shop as a catalogue for existing customers.

Online selling will work best for you if you have:

well-defined products or services that can be sold without human intervention in the sales process
fixed prices for all types of potential customers
products or services that can be delivered within a predictable lead time

Many businesses can run pilot e-commerce sites without significant investment. However, a fully automated
online shop tailored to meet your precise requirements could be expensive.

Avoid online pitfalls

Many e-commerce websites fail because of basic mistakes that are easily rectified. Customers will be put off by:

out-of-date or incorrect information

difficult site navigation and purchasing processes
poor customer fulfilment and late delivery
lack of customer support
lack of business information
poor visual design

So it is essential to:

Make sure all information on your website, especially on prices, is up to date.

Handout 4, Engleski jezik 2, PITUP; A.K., 2009/10-NP

13

Monitor the information you provide on a regular basis.

Make it easy to find and purchase products.
Make sure that resources and procedures are in place to support your website. This will ensure that
orders can be processed promptly, emails can be responded to quickly and helplines are manned by the
appropriate staff at reasonable times.
Have your website professionally designed.

Vocabulary
1. A business with no online presence is a bricks-and-mortar organization. At the opposite extreme, a few
virtual businesses exist only online. But most businesses are clicks-and-mortar they have some part of their
business on the web, but also physical premises.
2. The phrase e-commerce refers to the part of e-business related to buying and selling. Retailers set up an
electronic storefront (BrE shop front) and shoppers place items they want to buy in an electronic cart (BeR
trolley). When the shopper is ready, they go to the checkout where their payment is processed.
3. Whereas in e-commerce, information and communications technology (ICT) is used in inter-business or interorganizational transactions (transactions between and among firms/organizations) and in business-to-consumer
transactions (transactions between firms/organizations and individuals), in e-business ICT is used to enhance
ones business.
4. E-commerce is the use of electronic communications and digital information processing technology in
business transactions to create, transform, and redefine relationships for value creation between or among
organizations, and between organizations and individuals.
5. E-business is the transformation of an organizations processes to deliver additional customer value through
the application of technologies, philosophies and computing paradigm of the new economy.

Noun groups word order

Most B2B applications are in the areas of supplier management (especially purchase order processing),
inventory management, distribution management (especially in the transmission of shipping documents), channel
management (i.e., information dissemination on changes in operational conditions), and payment management
(e.g., electronic payment systems or EPS).
Three primary processes are enhanced in e-business: 1) Production processes, which include procurement,
ordering and replenishment of stocks; processing of payments; electronic links with suppliers; and production
control processes, among others; 2) Customer-focused processes, which include promotional and marketing
efforts, selling over the Internet, processing of customers purchase orders and payments, and customer support,
among others; and 3) Internal management processes, which include employee services, training, internal
information-sharing, video-conferencing, and recruiting.

Handout 4, Engleski jezik 2, PITUP; A.K., 2009/10-NP

14

Phrasal verbs
Creating an online shop: Defining how the business will develop
"Before setting up our online shop we used to sell our products direct to other businesses through catalogues and
sales representatives. In order to get the most out of our new sales channel we drew up a brief covering what we
wanted to achieve.
"We decided that raising turnover and opening up new sales channels were the key objectives. But we also
wanted the website to help us convert more enquiries into sales. We got so many enquiries by phone and email,
which took up a lot of our time to process. We found that we were losing out as we did not have an automated
process to capture these potential customers.
"Having identified these areas the online shop has really helped us to refocus our business plan. Turnover is up
by several hundred thousand pounds a year and we've opened up new sales channels - we got a 70,000 order
from South Korea just a week after the site's launch."

Handout 4, Engleski jezik 2, PITUP; A.K., 2009/10-NP

15