Presented By Tamseel

Fatima(170) & Shazia

Imam(175)

Electronic Commerce
Distributing, buying, selling, marketing
and Servicing of products or services
over electronic systems such as
computer and other networks.
It is an electronic business application
aimed at commercial transactions.

Definition of Commerce
The exchange of goods and services for
money
Consists of:
Buyers - these are people with money
who want to purchase a good or service.
Sellers - these are the people who offer
goods and services to buyers.
Producers - these are the people who
create the products and services that
sellers offer to buyers

Distribution Channel
Distribu
tor

Supplier

Supplier

Retailer

Tradition
al
Channels Customer
ECommer
ce

Customer

Elements of Commerce

You need a Product or service to sell

You need a Place from which to sell the
products
You need to figure out a way to get
people to come to your place.
You need a way to accept orders.
You also need a way to accept money.
You need a way to deliver the product or
service, often known as fulfillment.
Sometimes customers do not like what
they buy, so you need a way to accept
returns.
You need a customer service and
technical support department to assist

Characteristics of ecommerce

Exchange of Digitized Information

between Parties
communication, coordination for the
transmission of goods/ services
It is technology enabled (web
browsers, ATM interfaces)
Technology mediated transactions
more than human contact.
Intra and inter organizational
activities that exchange in Business
environment.

Characteristics of ecommerce

Universal Standards shared by all

nations.
Information density with technology
reducing the cost of Information and
raising the quality of information.
Richness of the data: Text, graphic,
Audio, and Video
Dynamic (continuous change)
Customization and interactivity;
sense and respond listening to
customers in a new way.

Advantages of ECommerce

Complements traditional business

24 X 7 operations
Global reach
Relatively less cost of acquiring,
serving, and retaining customers
An extended enterprise including
suppliers, retailers, and customers is
easy.
Disintermediation:Reduced
intermediaries between customer
and supplier

Advantages of ECommerce

A technology based customer interface

with GUI and interactivity which does
not need unnecessary follow ups
Interaction controlled by customer.(Any
time interaction can be closed)
Easy to observe and track customer/
consumer behavior
Network economics: In Information
centric industries gain more mileage.
Financial Institutions can reduce the no.
of branches due to increasing online
transactions.
Friction free commerce

Disadvantages of Ecommerce

Perishable foods, highly expensive

jewellery, antiques may be difficult to
inspect from remote location.
With emerging and dynamic technology
like E-Commerce, it is difficult to
calculate ROI
Micro transactions may include more
transaction charges than product price.
Difficulty in integrating online and offline processes.
Recruitment and retention of technical
people.
Cultural and legal obstacles.(cyber laws
not sufficient enough and security

Disciplines concerned
with E-commerce
Management
science

Computer
science

Economics
Sociology

Finance &
Accounting

Information
System
Marketing

E-Commerce I (1995 2000) Vs E-Commerce II (2001

onwards)

Technology driven
Revenue growth
emphasis
Venture capital
financing
Ungoverned
Entrepreneurial
Disintermediate
Perfect markets
Pure online strategy
First mover
advantage

Business Driven
Earning and profit
emphasis
Traditional financing
Strong regulation and
governance
Large traditional firms
Strengthening
intermediation
Imperfect with
markets, brands,
network effect
Mix of click and
brick
Strategic follower

Challenges for eCommerce

One world, the web world may

expect one price; entrepreneurs
must find ways to show
differentiation in product and
service.
Nearly 65% of transactions stop at
shopping cart level because of
customer uncertainties.
Constantly changing prices not
realistic.
Security concerns among people

Different types of E-Commerce

Business
(organizatio
n)

Customer
(individual)

Business
(Organisatio
n)

Customer
(Individual)

B2B
(e.g TPN)

B2C
(e.g Amazon)

C2B
(e.g Priceline)

C2C
(e.g eBay)

 Business

to Business (B2B) refers to the full

spectrum of e-commerce that can occur
between two organizations.
This includes purchasing and procurement,
supplier management, inventory management,
channel management, sales activities, payment
management &service and support.
Examples: FreeMarkets, Dell and General
Electric

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 and Charles Schwab
& Co

Peer to Peer (C2C) exchanges

involve transactions between and
among consumers. These can
include third party involvement,
as in the case of the auction
website Ebay.
Examples: Owners.com, Craiglist,
Monster
Consumer to Business (C2B)
involves when consumers band

{Feel good and provide

special}
Encourage customer loyalty
Members-only area
E-club with offers/discounts/freebies
Appreciate their business

Keep in touch with your

customers
- e-mail on a regular basis
- Newsletters
- Contests
- Notification of new giveaways

Conclusions
Change is unavoidable
Most e-commerce prerequisites follow
from making the right domestic policy
decisions
Get policy right
Telecom/internet build-out follows

Avoid undue restrictions on internet

Content control
Voice revenue support understandable but
harmful

Government can lead by implementing

e-government
Develops the market
Leads to better government