...CHAPTER 1 Introduction to Electronic Commerce © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a . license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. INYM 225 Study Unit 1 Introduction to Electronic commerce Ms Tumelo Nthutang Learning Objectives In this chapter, you will learn: • What electronic commerce is and how it has evolved in three waves of development • Why companies concentrate on revenue models and the analysis of business processes instead of business models when they undertake electronic commerce initiatives • How to identify opportunities for and barriers to electronic commerce initiatives • How economic forces have led to the development and continued growth of electronic commerce • How businesses use value chains and SWOT analysis to identify electronic commerce opportunities • How the international nature of electronic commerce affects its growth and development 3 3 Introduction Introduction • Electronic commerce began in the United States – China the leader in online retail sales since 2013 – More and more sales being made on smartphones • China is the world’s largest potential online market – Active Internet users and upward economic growth – Buyers use U.S. and domestic sites and are influenced by online reviews and discussions...
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...ELECTRONIC COMMERCE Name of the Student Institution Date ELECTRONIC COMMERCE Introduction The global transition from the analogue era to the digital era has brought along significant transformation. The introduction and use of the internet have made the world to be like a small village. This wave of migration from analogue to digital has seen the major field of different disciplines embraced the use of technology today.1 Commerce, being a major player in the field of trade and marketing has not lagged behind. The application of technology in this field resulted in the inception of Electronic commerce (e-commerce). E-commerce involves all the business activities that use the internet technologies.2 In general; e-commerce can be referred to as the sales aspect of e-business. The idea of integrating technology into sales and marketing field began in the 1980s. The application of internet technology in trade began in the mid 1990’s and grew rapidly up to the year 2000. In this year, the electronic commerce suffered a serious hitch-up that literal threatened to end its lifespan. However, in 2003, the e-commerce came back to life with companies that survived the turn-down showing growth in sales. This phase saw e-commerce grows rapidly and it became part of the larger total economy. The stable recovery saw ecommerce experience a less damage in the 2008 economic recession compared to the larger economy.3 Currently, ecommerce has advanced in its technological use and many customer...
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...process of Electronic Commerce software would be size of the company, and the traffic and sales on the site. Small and mid-size companies can use a Basic Commerce service provider as oppose to a large company. If the company is just starting the business they may not want to invest a lot into Electronic Commerce software. Free or low cost sites can benefit them if they are not going to sale a lot of items. Since software is already built into the free sites they have the benefit of immediately building their store front. With large business they are not able to use the free sites because of the traffic and volume of sales. They would have too many customers to use free or low cost software. There are all types of software that large companies can use one being Enterprise Class Electronic Commerce software. It provides tools necessary for B2B and B2C commerce. Along with web server systems and the necessary firewalls needed for security. Open Market, Customer Relationship Management, Supply Chain Management, Content Management and Knowledge Management software are choices that large and mid-size companies can choose. Unlike smaller companies who may not have the revenue to invest in these software. Because they may not have the customers needed that would require them to invest. In my opinion I would think that the large companies would have to worry about which software to choose when speaking of B2B and B2C commerce. Because they...
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...Types of Electronic Commerce Paul Hartness June 18, 2012 University of Phoenix BIS 220 Keyaan Williams Business to consumer ecommerce is the practice of a large number of buyers purchasing goods or services from a small number of sellers. It is considered to be the second largest division of ecommerce. It is probably the first thing that comes to mind when thinking about ecommerce. There are many different facets of business to consumer ecommerce. First, there is the most obvious: electronic storefronts and malls. These are businesses such as Amazon, Dell, and Walmart.com. Consumers can purchase the same products that the company would have in a store, but without actually having to visit the store. Electronic malls, such as shopping.yahoo.com, allow you to purchase products from different stores, but combine them into one purchase (Ranier 2011). Online service industries are also categorized under business to consumer ecommerce. These services range from online banking to securities trading and from online job search services to travel services. Business to consumer ecommerce is a very complex operation. It entails everything in the buying process beginning with advertising the product and making sure it is seen and known to the target audience, then to ensuring the products are easily and conveniently listed and accessible, as to not confuse the buyer and lead them away from the purchase, then to accepting payment and arranging the shipping process to the buyer. The...
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...MINI CASE-3 Networking can be a huge help in getting new sales, keeping in touch with current customers, and learning important information about the market your business is in. Identifying the reason for Betty to network: She needs to build new relationships with buyers on the eBay auction site. When selling on eBay you get rated and buyers look at those reviews to make sure they can trust you as a seller. She can spend her time networking to focus on finding new customers, and contacts or possibly developing internal relationships if she needs employees. Identifying the type of buyers to network with: Online Betty can choose different categories to list her figurines under and she will need to make sure and choose the right one to get the right buyers looking at that type of item. Betty also needs to keep in mind that there are mixed- revenue and fee for service social networking sites which can charge fees for advertising. She needs to be careful of any extra fees, due to the fact that she is slow in the summer months and does most of her selling online, she doesn’t have a lot of income flowing in from sales in the store, therefore she doesn’t need to spend money that isn’t necessary. By Betty using a social media to participate in the environment of an industry or product, she can interact with her customers or suppliers in many ways that are different from and more expansive than the roles traditionally taken in buyer-seller relationships. ...
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...three factors that would cause a company to continue doing business in traditional ways and avoid electronic commerce. Three factors that would cause a company to continue doing business the traditional way could be the type of products a company is selling, cultural and legal hindrances, and also if a company places an emphasis on low value transactions. The products a company sells can be a determining factor in their avoidance of the use of electronic commerce. For example, if a company was selling perishable foods or unbranded clothing, their customer base would want to examine the products before they buy to determine the quality of the item they are purchasing. Also if a company sells used or unbranded products it would be difficult for them to really sell significantly over the internet. Cultural and legal difficulties can cause a problem as well because many consumers are not at ease or comfortable with spending their information over the Internet to different businesses. Plus, the legal aspect is unclear when it comes to electronic commerce. If a company’s sales are primarily low value transactions then it would make no sense for them to switch into an electronic commerce business model because the cost of shipping would be prohibitive to its customers. RQ3. Choose one major difference between the first wave and the second wave of electronic commerce. Write a paragraph that describes this difference to a person who is not familiar with either business...
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...E-commerce is a promising and profitable sphere of the economy. But due to its specific nature, it faces many development problems. For example, buyers and sellers highly appreciate the convenience and simplicity of transactions, using the Internet. But along with the comfort for honest subjects of electronic commerce, these characteristics give rise to a powerful platform for the successful operation of dishonest entrepreneurs. As an example, there are many expensive products sold through the Internet store, which in fact are fake. There are also a number of problems that slow the development of electronic commerce. E-commerce involves the implementation of various trade transactions, both intra-national and foreign trade. But the implementation...
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...Electronic Commerce Decisions The decision to take up electronic commerce should be a strategic one, which is informed by the broad objectives of the firm. Whether or not electronic commerce will build value, reduce costs, or simply result in an extra layer of IT infrastructure that requires on-going support, are still issues for debate. Haag, S., & Cummings, M. (2008, pg. 227), in their case study of America Online (AOL) imply that AOL is "inching" toward becoming an Internet bank. In this posting, I discuss the recommendations I would make to AOL management, and the advice I would make to them, on the processes and outcomes they should expect from implementing the recommendations. Furthermore, recommendations on whether to follow the B2B or B2C model would be made for a small office supply company, with a small budget for IT, whose customers are local businesses, but does have a big need to be able to manage materials, delivery schedules, and build customer loyalty. The critical factors that would come into play in making this decision will also be discussed, as supported by documentary evidence and research. E-commerce processes According to Duffy, G., & Dale, B. G. (2002), it is not easy to find a generally accepted definition of Electronic commerce (e-commerce). Haag, S., & Cummings, M. (2008), state that e-commerce is commerce accelerated and enhanced by Information technology (IT), in particular the internet, enabling customers, consumers, and companies...
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...Electronic Commerce Research and Applications 3 (2004) 389–404 www.elsevier.com/locate/ecra Analysis of E-commerce innovation and impact: a hypercube model Jen-Her Wu a a,b,* , Tzyh-Lih Hisa a,c Department of Information Management, National Sun Yat-Sen University, 70 Lien-Hai Road, Kaohsiung 80424, Taiwan b Institute of Health Care Management, National Sun Yat-Sen University, Kaohsiung, Taiwan c Department of Information Management, Chinese Navel Academy, Kaohsiung, Taiwan Received 17 February 2004; received in revised form 19 April 2004; accepted 19 May 2004 Available online 2 July 2004 Abstract Electronic commerce (E-commerce) innovating applications have posed novel, technical, organizational and commercial challenges. This study uses a hypercube model to investigate these innovative changes and focuses on their impacts on E-commerce stakeholders: providers, E-commerce companies, customers, and complementors. The results indicate that mobile commerce (M-commerce) differs substantially from Web-based commerce in some technological components, yet both share common business model. However, from Web-based to M-commerce, innovation is architectural for customers and E-commerce companies, but a radical change for complementors. From M-commerce to Ucommerce, innovation is modular to customers, architectural to complementors and radical to E-commerce companies and providers. Thereafter, the critical impacts of E-commerce innovations on the stakeholders are identified...
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...Definition of Electronic commerce (EC) The process of buying, exchanging products, selling, services, or information via computer networks. Analyze the various types of EC activities Business-to-Business (B2B) An interaction between the business people and other organizations is known as Business-to-Business (B2B). For example www.walmart.com and www.Sams club.com Business-to-consumer (B2C) Business selling to individual shoppers is known as Business-to-consumer (B2C). For example www.Barnes&Nobles.com. E-tailing Online shopping having access to products of interest for the consumers, by visiting their website directly is called E-tailing. For example Amazon, e-Bay. Business-to-Business-to-consumer (B2B2C) Business providing some product or service to a client business that maintains its own customers is known as (B2B2C). Consumer-to-Business (C2B) A consumer uses internet to sell products or services to organizations or individuals seeking sellers, to bid on products or services they need. For example e-Bay. Business-to-employees (B2E) Organization delivers services, information, or products to its individual employees. For example www.asics.com Consumer-to-consumer (C2C) Consumer sells the product directly to other consumer. For example www.craigslist.com List of advantages and disadvantages of Electronic Commerce Advantages - 24/7 services for buying or selling products - Readily available to customers - Easy to manage a business - Faster and user...
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...development from traditional commerce and marketing methods to the electronic commerce people can easily buy or sell both material and virtual products such as, software, books, music, movies on the Internet. Products are purchased through the Internet by electronic payment system. People can purchase products by using credit or debit card. However, for several small value products such as, a song in iTunes music store only cost 0.99$ or a mobile game only cost 3.99$, it could be hard to using credit or debit cards to purchase those products because of the fixed minimum transaction could be cost too expensive for small transactions (Turban, King, Lee & Liang, 2010). Therefore, a micro payment system is designed to handle those small payments. There are many online micropayment systems such as, PayPal, Millicent, Digicash, Cybercoin, Internet Dollar and many more. However, not all these companies succeed in handling micropayment and some companies were bankrupt for example, Millicent, Digicash. The aim of this paper is to compare several main characteristics of some popular micro payment systems then evaluate the success of micropayment system. This paper will begin with a definition of micro payment system, the characteristic of micropayment system. Next section is to describe how different micropayment systems work. The final section will evaluate the aspects deciding the success of micropayment system. Definition of micropayment system Electronic micro payments are small...
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... Types of Electronic Commerce Activity Electronic Commerce has really taken It’s place in history. Millions of electronic transactions are taking place daily all across this world of ours. This is even happening as we sleep in our beds at night. As the demand rises for more Transactions at a higher rate of speed, the cost itself goes up as we have to purchase new and improved hardware and software systems. These new systems will handle the extra amount of supplies that are being manufactured, sent, sold and auctioned not only here in the United States but across this world of ours. Some of these transactions are when a consumer, such as my wife orders something from Walmart or QVC and it is sent directly to our home. Another would be like when the US NAVY buys parts for their ships from a company like Honeywell, and they send these parts to the Navy. We also find consumer’s selling online to other consumer’s via the auction, or businesses purchaseing traveling discounts for their employees. My favorite electronic activity is when my mom recieves her social security benefit payment in her account so I can pay her bills for her on time. This is a chart showing how some of the E-Commerce transactions go from one activity to the end user, or recipient. Finally,...
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...Emerging Trends in Electronic Commerce and Internet Marking Emerging Trends in Electronic Commerce and Internet Marking Over the past couple of years, electronic commerce and internet marking has taken huge strides in the average life of an everyday person. In recent years, the number of consumers purchasing items online as taken a heavy rise, it is without a doubt, one of the fastest growing industries. Online shopping has been a booming trend, particularly in the United States, “Americans spent more than $200 billion on online shopping in 2011 and are expected to shell out $327 billion on Internet stores by 2016”. (Indivik, 2013) Internet marketing has a direct effect the billions of dollars that online websites makes. The more advertisements you have on the World Wide Web, the more people are going to stop and visit for sight and probably make a purchase. Since Electronic commerce is a huge thing in recent years, companies have been working to make your online shopping experience better and there are a couple of emerging trends geared towards the improvements of e- commerce and internet marking. Note Adapted from Forrester: U.S. Online Retail Sales to Hit $370 Billion by 2017,” by Lauren Indvik, 2013. One of the trends that probably anybody can predict in the future is using mobile and android apps for transactions. With mobile technology getting more advance year by year and the climbing number of people who can’t stay off their phones, I would have say, and this is...
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...The “Electronic Signatures in Global and National Commerce” Act and eCommerce The “Electronic Signatures in Global and National Commerce” Act went into effect October 1, 2000. This act will have a profound impact on online business by establishing the legal validity of electronic contracts between legal or commercial entities. The new level of enforceability the act gives to online transactions extends from retail purchases to Business-to-Business to almost any contract two parties would like to execute online. The act, on a national level, specifically makes “electronic signatures” binding and enforceable by superceding most existing state and federal laws requiring hard copies of many types of documents to exist. Electronic records may now serve in place of these hard copies and the act even provides for electronic Notary Publics where required. A seller can now reasonable be assured that they have a purchaser’s electronic signature on a contract of sale if the purchaser is made aware they are entering into the contract and completes a definitive and unambiguous process that signals the intention of the purchaser to be bound to the terms and conditions of the sale. At this point, the purchaser has given their electronic signature to the contract of sale and is legally bound by the terms and conditions of the contract. The seller has also completed the process of offering the contract of sale. These actions demonstrate the parties’ intention to be bound by the...
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...E-COMMERCE – IT430 VU Lesson 01 Course outline E-COMMERCE E-Commerce and its types, Internet and WWW Basics, Internet standards and protocols, IP addressing, Data communication on internet, Domain name system Networking devices – Bridges, Switches, Routers etc., Role of ISP’s on Internet, Getting Domain name and IP addresses, Understanding electronic mail Markup languages and the Web, Web designing using HTML, CSS and Java Scripting Client side & server side processing, Cookies, Maintaining state in a stateless environment, two tier/ntier architecture Security issues on the internet, Firewalls, Proxy Server, Virtual Private Network Cryptography and Public key infrastructure (PKI), Certification Authorities and Digital Certificates, Digital signatures Technology Electronic Payment Systems – Virtual Pin payment system, Centralized account system, Electronic Check, E-Cash, SSL and SET based payment systems E-business– advantages/disadvantages, Paper and electronic catalogues Electronic Data Interchange (EDI) E-business models Internet marketing Data mining and knowledge discovery Process, OLAP, Types and business application of data mining E-business strategy, supply chain/value chain analysis and Porter’s model, role of e-commerce in competitive strategy E-banking, ERP Legal/policy issues in e-commerce –salient features of Electronic Transactions Ordinance, 2002 in Pakistan Territorial jurisdiction and conflict of laws, online contracts, online defamation, Copyright in...
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