E-COMMERCE Buying and selling over the Internet. ON-LINE SHOPPING Advantages – consumer Advantages...

E-COMMERCEE-COMMERCE

Buying and selling over the Buying and selling over the InternetInternet

ON-LINE SHOPPINGON-LINE SHOPPING

Advantages – Advantages – consumerconsumer

Can shop the world Can shop the world overover

Do not have to leave Do not have to leave homehome

Cost savings in Cost savings in traveltravel

Can shop anytimeCan shop anytime

Advantages – Advantages – retailerretailer

Less sales peopleLess sales people Less investment in Less investment in

physical sitesphysical sites Wider customer Wider customer

basebase

ON-LINE SHOPPINGON-LINE SHOPPING

Disadvantages – Disadvantages – consumerconsumer

Security for payingSecurity for paying Legitimacy of sitesLegitimacy of sites Unsolicited online Unsolicited online

advertisingadvertising

Disadvantages – Disadvantages – retailerretailer

Wholesalers might Wholesalers might sell on their ownsell on their own

UnemploymentUnemployment Loss of personal Loss of personal

touchtouch

So how do Web sites make

AdvertisingAdvertising

IDEA – charge by the number IDEA – charge by the number of visitors to the siteof visitors to the site

PORTAL

The site you use as your guide to the rest of the Internet.

Another idea!!

Get companies to become

They pay a % of the sales made through the site.

Did you know YAHOO has become a PORTAL?

And so isMSNSNAP

EXCITENetscape

AOLGo Network

How to make Web advertising How to make Web advertising EFFECTIVEEFFECTIVE

Use a Use a banner adsbanner ads Remember applets?Remember applets?

Use a Use a live banner adlive banner ad – allows you to – allows you to get more information about the get more information about the product without going to the siteproduct without going to the site

Use Use context-sensitive advertisingcontext-sensitive advertising – – ad is related to the subject matter on ad is related to the subject matter on the screenthe screen

Disadvantages to users:Disadvantages to users:

Takes time to load the graphicsTakes time to load the graphics

Ads load firstAds load first

A little aside:Do you know what Web

analysis software is?

This software runs in the background of a site.

It makes note of everything it – what site you came from_ what time of day you visited_ how long you stayed_ what files you downloaded

It is used by businesses to analyze the

effectiveness of its advertising.

Is it invading your privacy?

Call accountant about

Taxes

INTERNET TAX FREEDOM ACT

1.No taxes on Internet access charges

2.No taxes on out-of-state businesses

Summary – Internet should be free of new taxes for 3 years.

Sales taxes may only have to be added to purchases if company has a physical presence in your state.

SECURE

SOCKETS LAYER (SSL)

Standard for encrypting online transaction payments

Two types of E-Two types of E-COMMERCECOMMERCE

B2C – business to customerB2C – business to customer

B2B – business to businessB2B – business to business

FACTS

• BANDWIDTH – measure of the data transferred

• BACKBONE – major links

• Digital/analogue transmission

• ISDN/DSL – do digital transmission• ISP – does analogue transmission

Downloading active audio, video, and animation content.

REALPLAYERa plug-in which allows streaming

YAHOO!Eventspresents live radio and television

shows

Ways to send information

• Unicasting – sends to each recipient

• Broadcast mode – sends to all

• Multicasting – sends to selected individuals

• Push technology/webcasting – information that is sent to you automatically – with your consent

Intranet/Extranet

Intranet – private Internet-like network

Extranet – An intranet with extra connections (a company and some

selected customers

VPN – virtual private network

Carves out a private passageway through the Internet

PPTPPoint to Point Tunneling Protocol

Allows use of the Internet to transmit data privately