INTRODUCTION TO ECOMMERCE

INTRODUCTION TO ECOMMERCE

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  UNIT-2 [INTRODUCTION TOE INFORMATION TECHNOLOGY FOR BUSINESS INFORMATION TECHNOLOGY FOR BUSINESS INTRODUCTION TO E HISTORY OF ECOMMERCE • Ecommerce actually goes back to the 1960s when companies used an electronic system called the Electronic Data Interchange to facilitate the transfer of documents. But it wasn't until 1994 that the very first between friends through an online retail website called NetMarket • The industry has gone through so many changes since then, resulting in a great deal of evolution. Traditional brick-and in order to stay afloat as companies like Alibaba, Amazon, eBay, and Etsy became household names. • These companies created a virtual marketplace for goods and ser easily access. • New technology continues to make it easier for people to do can connect with businesses through apps to make purchases. The introduction of free shipping, which reduces costs for consumers, has also helped increase the popularity of the MEANING OF E-COMMERCE • Ecommerce stands for electronic commerce and refers to a digital platform and a business model where you can buy or sell products online. • Every time you purchase a product online, you’re participating in the eco economy. DEFINITION OF ECOMMERCE "E-Commerce comprises core business processes of buying and selling, goods, services and information over the internet". RODUCTION TO E-COMMERCE] INFORMATION TECHNOLOGY FOR BUSINESS - II INFORMATION TECHNOLOGY FOR BUSINESS UNIT-2 RODUCTION TO E-COMMERCE HISTORY OF ECOMMERCE Ecommerce actually goes back to the 1960s when companies used an electronic system called the Electronic Data Interchange to facilitate the transfer of documents. But it wasn't until 1994 that the very first transaction. took place. This involved the sale between friends through an online retail website called NetMarket. has gone through so many changes since then, resulting in a great deal of and-mortar retailers were forced to embrace new technology er to stay afloat as companies like Alibaba, Amazon, eBay, and Etsy became These companies created a virtual marketplace for goods and services that consumers can New technology continues to make it easier for people to do their online shopping. People can connect with businesses through smartphones and other devices and by downloading apps to make purchases. The introduction of free shipping, which reduces costs for consumers, has also helped increase the popularity of the ecommerce industry. COMMERCE Ecommerce stands for electronic commerce and refers to a digital platform and a business model where you can buy or sell products online. Every time you purchase a product online, you’re participating in the eco DEFINITION OF ECOMMERCE Commerce comprises core business processes of buying and selling, goods, services and Mr.Chethan.S Page 1 INFORMATION TECHNOLOGY FOR BUSINESS - II Ecommerce actually goes back to the 1960s when companies used an electronic system called the Electronic Data Interchange to facilitate the transfer of documents. But it wasn't transaction. took place. This involved the sale of a CD has gone through so many changes since then, resulting in a great deal of mortar retailers were forced to embrace new technology er to stay afloat as companies like Alibaba, Amazon, eBay, and Etsy became vices that consumers can their online shopping. People and other devices and by downloading apps to make purchases. The introduction of free shipping, which reduces costs for ecommerce industry. Ecommerce stands for electronic commerce and refers to a digital platform and a business Every time you purchase a product online, you’re participating in the ecommerce Commerce comprises core business processes of buying and selling, goods, services and -P.T. Joseph
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  UNIT-2 [INTRODUCTION TOE INFORMATION TECHNOLOGY FOR BUSINESS RODUCTION TO E-COMMERCE] INFORMATION TECHNOLOGY FOR BUSINESS - II Examples of Ecommerce Mr.Chethan.S Page 2
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  UNIT-2 [INTRODUCTION TOE INFORMATION TECHNOLOGY FOR BUSINESS WHAT IS AN E COMMERCE FRAMEWORK? An E-commerce framework is a software used to develop e frameworks provide all the requirements regarding the development in every category of e commerce web application or online shop. • With the increased demand for online s developers has also increased. Here we have briefly discussed frameworks in different domains. RODUCTION TO E-COMMERCE] INFORMATION TECHNOLOGY FOR BUSINESS - II WHAT IS AN E COMMERCE FRAMEWORK? is a software used to develop e-commerce stores or sites. These frameworks provide all the requirements regarding the development in every category of e commerce web application or online shop. With the increased demand for online stores, the demand for e-commerce framework has also increased. Here we have briefly discussed top e in different domains. Mr.Chethan.S Page 3 commerce stores or sites. These frameworks provide all the requirements regarding the development in every category of e- commerce framework top e-commerce
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  UNIT-2 [INTRODUCTION TOE INFORMATION TECHNOLOGY FOR BUSINESS E-COMMERCE FRAMEWORK DEVELOPERS E-COMMERCE PROJECT PROCESS BY DEVELOPERS RODUCTION TO E-COMMERCE] INFORMATION TECHNOLOGY FOR BUSINESS - II COMMERCE FRAMEWORK DEVELOPERS PROJECT PROCESS BY DEVELOPERS Mr.Chethan.S Page 4 PROJECT PROCESS BY DEVELOPERS
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  UNIT-2 [INTRODUCTION TOE-COMMERCE] Mr.Chethan.S INFORMATION TECHNOLOGY FOR BUSINESS - II Page 5 BACK-END E-COMMERCE TECHNOLOGIES An E-commerce website cannot survive in the competitive market if the back-end does not support well. In the back-end, the technologies are boring and pretty complex. But developers should know what makes the development process more interesting, and that is using the right technology to perform functions rightly. Some back-end programming languages and databases include: • PHP • Python • Java • MySQL, • ASP.NET, etc. • To learn the e-commerce framework, you first need to learn basic scripted and programming languages like HTML, XML, and CSS and then learn the back-end programming languages. Then take the training courses of your framework to fast track the progress. • You can also enroll in online e-commerce framework training courses where you can directly learn from the e-commerce framework developers with massive experience. • Some popular online sites to learn e-commerce framework development include: o Udacity o Coursera o Khan Academy o Udemy etc.,
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  UNIT-2 [INTRODUCTION TOE-COMMERCE] Mr.Chethan.S INFORMATION TECHNOLOGY FOR BUSINESS - II Page 6 E-COMMERCE FRAMEWORK MODEL
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  UNIT-2 [INTRODUCTION TOE-COMMERCE] Mr.Chethan.S INFORMATION TECHNOLOGY FOR BUSINESS - II Page 7 KEY REQUIREMENTS TO ECOMMERCE WEBSITES • USER-FRIENDLY DESIGN: When users cannot find what they need quickly, they need to go through the pages for a long time, which demotivates purchasing in general. The longer customers search for the items, the less likely they are to buy the item they want and need. • OPTIMIZED FOR MOBILE: Today, more than half of the customers buy things using their mobile devices. As a result, online stores should be ready and prepared for use from mobile devices. It requires optimization for mobile devices with a responsive design. Responsive designs adjust to the screen that the customer browses. • SECURITY: When it comes to a secure website, it means that your customers need to be sure that their personal and financial data are protected. It signifies establishing adequate security policies and using security technologies to ensure that the data of customers are not stolen from the website. Financial and legal risks also increase when you forget your security. To enhance security, you might: • Purchase a Secure Sockets Layer (SSL) certificate • Use an address verification system (AVS) at checkout • Use credit card verification value (CVV) at checkout 10 IMPORTANT FEATURES OF ECOMMERCE WEBSITES
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  UNIT-2 [INTRODUCTION TOE INFORMATION TECHNOLOGY FOR BUSINESS ESSENTIALS | ELEMENTS OF E The basic elements: • An e-shop on server • User (customer) with a web browse • An Internet Connection Additional issues: • Visibility • Ease of Use | Response Desig • User-Friendly Purchasing | Order Processin • Online Payments • Security • Delivery Systems • After-Sales • Options for Customer Car FUNCTIONS OF ECOMMERCE • Marketing, • Finance, • Supply chain RODUCTION TO E-COMMERCE] INFORMATION TECHNOLOGY FOR BUSINESS - II ESSENTIALS | ELEMENTS OF E-COMMERCE User (customer) with a web browser Ease of Use | Response Design Friendly Purchasing | Order Processing Options for Customer Care FUNCTIONS OF ECOMMERCE Mr.Chethan.S Page 8
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  UNIT-2 [INTRODUCTION TOE-COMMERCE] Mr.Chethan.S INFORMATION TECHNOLOGY FOR BUSINESS - II Page 9 ADVANTAGES OF E-COMMERCE • It operates 24 hours a day, 7 days a week • Provides a global reach • Fast Buying Process • Eliminates Operating Cost • Connects far and wide • Buyers can meet almost anytime, • Anywhere without intermediaries, • Personal Shopping Experience • Gives users more options for comparison. DISADVANTAGES OF E-COMMERCE • Choose the cheapest and best option • Significantly reduce paperwork • Lack of Personal Touch • Lack of Tactile Experience • Security and Site crash: malware, theft • Some items are difficult to buy online • Price and Product Comparison • Credit Card Fraud and Legal issues
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  UNIT-2 [INTRODUCTION TOE-COMMERCE] Mr.Chethan.S INFORMATION TECHNOLOGY FOR BUSINESS - II Page 10 TYPES OF E-COMMERCE MODELS Electronic commerce can be classified into four main categories. The basis for this simple classification is the parties that are involved in the transactions. So the four basic electronic commerce models are as follows, 1. Business to Business (B2B) 2. Business to Consumer (B2C) 3. Consumer to Consumer (C2C) 4. Consumer to Business (C2B)
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  UNIT-2 [INTRODUCTION TOE INFORMATION TECHNOLOGY FOR BUSINESS 1. Business to Business (B2B) This is Business to Business transactions. Here the companies are doing business with each other. The final consumer is not involved. So the online transactions only involve the manufacturers, wholesalers, retailers etc 2. Business to Consumer (B2C) Business to Consumer. Here the company will sell their goods and/or services directly to the consumer. The consumer can browse their websites and look at products, pictures, read reviews. Then they place their order and the company ships the goods directly to them. Popular examples are Amazon, Flipkart, Jabong etc 3. Consumer to Consumer (C2C) Consumer to consumer, where the consumers are in direct contact with company is involved. It helps people sell their personal goods and assets directly to an interested party. Usually, goods traded are cars, bikes, electronics etc. OLX, Quikr etc follow this model. RODUCTION TO E-COMMERCE] INFORMATION TECHNOLOGY FOR BUSINESS - II This is Business to Business transactions. Here the companies are doing business with each other. The final consumer is not involved. So the online transactions only involve the manufacturers, wholesalers, retailers etc. 2. Business to Consumer (B2C) to Consumer. Here the company will sell their goods and/or services directly to the The consumer can browse their websites and look at products, pictures, read reviews. Then they place their order and the company ships the goods directly to them. Popular examples are Amazon, Flipkart, Jabong etc. 3. Consumer to Consumer (C2C) Consumer to consumer, where the consumers are in direct contact with each other. No company is involved. It helps people sell their personal goods and assets directly to an interested party. Usually, goods traded are cars, bikes, electronics etc. OLX, Quikr etc follow Mr.Chethan.S Page 11 This is Business to Business transactions. Here the companies are doing business with each other. The final consumer is not involved. So the online transactions only involve the to Consumer. Here the company will sell their goods and/or services directly to the The consumer can browse their websites and look at products, pictures, read reviews. Then they place their order and the company ships the goods directly to them. each other. No company is involved. It helps people sell their personal goods and assets directly to an interested party. Usually, goods traded are cars, bikes, electronics etc. OLX, Quikr etc follow
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  UNIT-2 [INTRODUCTION TOE INFORMATION TECHNOLOGY FOR BUSINESS 4. Consumer to Business (C2B) This is the reverse of B2C, it is a consumer to business. So the consumer provides a good or some service to the company. Say for example an IT freelancer who demos and sells his software to a company. This would be a C2B transaction Example: • writing reviews for the personal blog or website • sharing posts on social networks • creating photos and videos Apart from these, there are five more models • Business-to-Administration (B2A) • Consumer-to-Administration (C2A) • Business-to-government (B2G) • Government-to-Consumer (G2C) • Government-to-Business (G2B) MOBILE COMMERCE M-commerce (mobile commerce) is wireless handheld devices such as smartphones and tablet commerce enables users to access online shopping platforms without needing to use a desktop computer. RODUCTION TO E-COMMERCE] INFORMATION TECHNOLOGY FOR BUSINESS - II 4. Consumer to Business (C2B) This is the reverse of B2C, it is a consumer to business. So the consumer provides a good or some service to the company. Say for example an IT freelancer who demos and sells his software to a company. This would be a C2B transaction. ews for the personal blog or website; sharing posts on social networks; creating photos and videos. Apart from these, there are five more models Administration (B2A) Administration (C2A) government (B2G) Consumer (G2C) Business (G2B) commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as smartphones and tablets. As a form of e-commerce, m commerce enables users to access online shopping platforms without needing to use a Mr.Chethan.S Page 12 This is the reverse of B2C, it is a consumer to business. So the consumer provides a good or some service to the company. Say for example an IT freelancer who demos and sells his selling of goods and services through commerce, m- commerce enables users to access online shopping platforms without needing to use a
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  UNIT-2 [INTRODUCTION TOE INFORMATION TECHNOLOGY FOR BUSINESS DIFFERENCE BETWEEN TRADITIONAL COMMER RODUCTION TO E-COMMERCE] INFORMATION TECHNOLOGY FOR BUSINESS - II DIFFERENCE BETWEEN TRADITIONAL COMMER AND E COMMERCE Mr.Chethan.S Page 13 DIFFERENCE BETWEEN TRADITIONAL COMMERCE
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  UNIT-2 [INTRODUCTION TOE-COMMERCE] Mr.Chethan.S INFORMATION TECHNOLOGY FOR BUSINESS - II Page 14 DIFFERENCE BETWEEN E COMMERCE AND M COMMERCE ECOMMERCE REVENUE MODELS 1. Sales Revenue Model The most common of all ecommerce revenue models, here profits are achieved by selling products or providing services online versus, or in addition to, brick-and-mortar stores. Any business selling items through the internet, regardless of their business model, is following the sales revenue model. While they may have other revenue streams, this tends to be their bread-and-butter.
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  UNIT-2 [INTRODUCTION TOE-COMMERCE] Mr.Chethan.S INFORMATION TECHNOLOGY FOR BUSINESS - II Page 15 2. Advertising Revenue Model Is Bob’s Bait & Tackle ever going to get the type of traffic as, say, Facebook or Google? Of course not. But they can advertise on those sites! The advertising revenue model is when popular platforms allow others to advertise with them for a fee. Media sites, such as magazines, newspapers, and TV channels also frequently use this model. While they may charge a flat fee for advertising, generally cost is based on pay-per-click (PPC), which is the number of people who click on the ad. 3 Subscription Revenue Model When it comes to the subscription revenue model, a lot of people think of Netflix or Spotify. However, there are also many popular subscription box brands like Bark Box, Hello Fresh, Ipsy, and Harry’s. Regardless of the offering, with this model users are charged a recurring fee (monthly or annual) for using services or having existing products replenished and delivered regularly. Today, there are an estimated 7,000 subscription box services operating globally!
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  UNIT-2 [INTRODUCTION TOE-COMMERCE] Mr.Chethan.S INFORMATION TECHNOLOGY FOR BUSINESS - II Page 16 4. Transaction Fee Revenue Model This model charges a fee every time a transaction is made through their platform. For example, eBay charges sellers a fee whenever an item is sold; PayPal charges users a fee for transferring money; eTrade gains a transaction fee whenever a stock is sold; and so on. While fees tend to be minimal, if people are making thousands of transactions per day, the revenue can be substantial!
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  UNIT-2 [INTRODUCTION TOE INFORMATION TECHNOLOGY FOR BUSINESS 5. Affiliate Revenue Model Last but not least is affiliate marketing. With this model, businesses earn revenue just by promoting and selling another person’s (or company’s) product on their site (as opposed to the advertising revenue model, which doesn’t allow for purchase on the host’s site). T concept of affiliate marketing is based on revenue sharing. If a business has a product and wants to earn more, you can promote complementary products or services of another company that will, in turn, pay you for your referrals. It’s a win affiliate gains a new, passive revenue stream, and the merchant gains new customers! Learn more about affiliate marketing here RODUCTION TO E-COMMERCE] INFORMATION TECHNOLOGY FOR BUSINESS - II least is affiliate marketing. With this model, businesses earn revenue just by promoting and selling another person’s (or company’s) product on their site (as opposed to the advertising revenue model, which doesn’t allow for purchase on the host’s site). T concept of affiliate marketing is based on revenue sharing. If a business has a product and wants to earn more, you can promote complementary products or services of another company that will, in turn, pay you for your referrals. It’s a win-win for both affiliate gains a new, passive revenue stream, and the merchant gains new customers! Learn more about affiliate marketing here. ***** Mr.Chethan.S Page 17 least is affiliate marketing. With this model, businesses earn revenue just by promoting and selling another person’s (or company’s) product on their site (as opposed to the advertising revenue model, which doesn’t allow for purchase on the host’s site). The concept of affiliate marketing is based on revenue sharing. If a business has a product and wants to earn more, you can promote complementary products or services of another win for both parties; the affiliate gains a new, passive revenue stream, and the merchant gains new customers! Learn