What Is E-Commerce?

What is electronic commerce (e-commerce)?

  • Financial business transaction that occurs over an electronic network
  • Sometimes called e-business

How are e-commerce transactions conducted?

  • Primarily through desktop computers
  • Wirelessly using handheld Web-enabled devices

What is a bricks-and-mortar business?

  • Company with a physical location, such as Wal-Mart or Kmart
What Is E-Commerce
What Is E-Commerce


What is a clicks-and-mortar business?

  • Company with a bricks-and-mortar location as well as an online presence
  • Some companies have online presence without physical locations – E*Trade and Amazon.com

How has e-commerce grown?

  • Estimates are that by 2005 worldwide e-commerce will exceed $5 trillion

What is business-to-consumer (B-to-C or B2C) e-commerce?

  • Sale of products or services from a business to the general public

How might a B2C e-commerce business operate?

  1. Customers buy products and services online INTERNET
  2. Network contains Web hosting, security, and backup
  3. Warehouse receives and fulfills order

What is disintermediation?

  • Sell products to consumers without using traditional retail channels
  • Enables companies to maximize benefits by eliminating middleman
What Is E-Commerce
What Is E-Commerce

What is consumer-to-consumer (Cto- C or C2C) e-commerce?

  • Individuals using Internet to sell products to other individuals – Online auction, such as eBay

What is peer-to-peer (P2P) e-commerce?

  • Users connect to each other’s hard disks and exchange files directly
  • Consumer can pay another consumer to copy file

What is business-to-business (B-to-B or B2B) e-commerce?

  • Sale and exchange of products and service between businesses
  • Many businesses engage in both B2B and B2C
  • Supply chain creates and distributes products

What is vertical B2B e-commerce?

  • E-commerce site specializing in a particular industry

What is business-to-employee (Bto- E or B2E) e-commerce?

  • Use of intranet technology to handle activities that take place within a business
  • Increases profits by reducing expenses within a company
What Is E-Commerce
What Is E-Commerce

What are some advantages of e-commerce?

  • Global market 24/7
  • Businesses have access to 459 million people with Internet access
  • Customers can conduct price comparisons easily
  • Feedback can be immediate
  • Changing information can be available quickly
  • FAQ (frequently asked questions) pages can provide easy access to customer support
  • Ability to gather customer information, analyze it, and react
  • New and traditional approaches to generating revenue
  • Manufacturers can buy and sell directly, avoiding the cost of the middleman
  • Distribution costs for information reduced or eliminated
  • Options to create a paperless environment

What is a revenue stream?

  • Method a business uses to generate income
  • Single Web site may use more than one method of generating revenue

What is electronic software distribution (ESD)?

  • Sale of digital products such as software, music, movies, books, and photographs
  • Purchase entitles you to download one copy of item

How is revenue generated with software rental?

  • ASP charges a rental fee before you can access and use Web application software
  • Microsoft’s Web applications are called .NET

What is advertisement revenue?

  • Sites earn commissions from advertising sponsor when visitors make purchases as a result of clicking advertisement on Web page

How is revenue generated with an informational Web site?

  • Visitors are required to subscribe to service
  • Provides some information at no cost, but requires a subscription to access content of entire site
What Is E-Commerce
What Is E-Commerce

What is a Web hosting service?

  • Assists people and companies in hosting their Web site
  • Provides hardware, software, and communications required for a Web server
  • Some provide services that include managing payments and tracking inventory

How is revenue generated with Internet access?

  • Some sites, such as MSN and AOL, provide Internet access
  • Many have become portals offering other services

What is an electronic storefront?

  • Web site where e-retailer displays its products
  • Shopping cart allows customer to collect purchases
  • Also called online catalog

What is a secure checkout?

  • Web site where customer enters personal and financial data
  • Transaction and financial data automatically are verified at a banking Web site

What is online banking?

  • Pay bills from your computer
  • Transfer money electronically from your account to a payee’s account

What is online trading?

  • Invest online in stocks, options, bonds, treasuries, CDs, money markets, annuities, and mutual funds without using a broker
  • Transaction fees are less expensive
What Is E-Commerce
What Is E-Commerce

What travel services are available on the Web?

  • Driving directions and maps
  • Airline, hotel, and car reservations

What is a shopping bot?

  • Web site that searches for the best price on a specific product
  • Also called a shopbot

What is e-commerce software?

  • Allows merchant to set up a storefront
  • Includes security
  • Some include statistical tracking features and capability of integrating with other systems

2 thoughts on “What Is E-Commerce?”

Leave a Comment