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E-CommercePresentation By

Rajesh, Sandip & Sameer

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Definition :

Electronic commerce, commonly known as

e-commerce or eCommerce, or e-business

consists of the buying and selling of

products or services over electronic

systems such as the Internet and other

computer networks.

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Objectives After completing this lesson,

you will able to:

Understand the basis of classification of

e-commerce.Differentiate the types of e-commerce.

List websites of the different e-

commerce types.

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Introduction

E-commerce is more than just buying and sellingproducts online.

Instead, it encompasses the entire online processes of

developing, marketing, selling, delivering, and paying forproducts and services purchased by internet worked,

global market places of customers, with support of

worldwide network of business partners.

In using the web as links between the buyers and

sellers, they can use internet, extranet and intranets.

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Classification of e-commerce

The classification of ecommerce is

based:

who orders, the goods and services

to be sold,

who sold those goods and services

and the nature of transactions.

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Classification of e-commerce (cont)

Based on the above criteria, e-commerce

are classified as;

I. Business-to-Business (B2B) e commerce

II. Business-to-Consumer (B2C) e commerce

III. Consumer-to-Business (C2B) e commerce

IV. Consumer-to-Consumer (C2C) eV. commerce Peer-to-Peer (P2P)e

commerce

VI. M-commerce

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Classification of e-commerce

(cont)

VII. Businessto-Employee

VIII. E-GovernmentIX. E-Learning

X. None-Business e-commerce

XI. Business-to-Business-to-CustomerXII. Intra-business e commerce

XIII. Exchange-to-Exchange

XIV. Collaborative commerce

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Business-to-Business (B2B) e-commerce

It is the largest form of ecommerce

In this form the buyers and sellers are both business

entities and do not involve and individual consumer.

It is commonly known as EDI (Electronic Data

Interchange).

According to the European model EDI Agreement

Article 2.1, EDI is the electronic transfer from computer

to computer, of commercial and administrative data

using an agreed standard to structure an EDI message.

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1.Business-to-Business (B2B) e-commerce

(cont)

From the above definition;

the EDI transitions are composed of:

Codes and values (structured data) Standard format and pieces of texts (agreed message

standards)

Message to be sent between two computers (from

computer to computer) by networks (by electronicmeans).

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1.Business-to-Business (B2B) e-commerce

(cont)

The companies include in the B2B ecommerce

are manufacturers, wholesalers rather than

retailers only.

Pricing is based on quantity of orders and is often

negotiable.

This type of ecommerce is privately held, since

only business companies can qualify as potential

buyers.

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Advantages of B2B e-commerce

Some advantages of B2B ecommerce are;

Direct interaction with customers.

Focused on sales promotion.

Building customer loyalty.

Scalability Savings in distribution costs

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Websites that are engaged in B2B

ecommercecommodityindia.com

Indiaconstruction.com

clickforsteel.com

Transora.com

etc.

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2.Business-to-Consumer (B2C)e-commerce

In this e-commerce type, business and consumers areinvolved.

Business sell to the public typically through catalogs

utilizing shopping cart software.

In Business-to Consumer (B2C) e commerce, business

must develop attractive electronic market places to

entice and sell products and services to the consumer.

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Business-to Consumer (B2C) e-commerce

transaction process

Business-to Consumer (B2C) e commercetransaction process includes;

Customer identifies a need.

Searches for the product or services to satisfy the need.

Selects a vendor and negotiates a price.

Receives the product or services (delivery logistics, inspection and acceptance).

Makes payment.

Gets service and warranty claims.

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Websites that are engaged in

(B2C) e-commerceAmazon.com,

llbean.com,

CompUSA.com,Travelocity.doc,

hotels.com,

chow.net,

rediff.com,

jaldi.com,

indiatimes.com,

indiaballs.com,

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3. Consumer-to-Business (C2B) e-commerce

Also called demand collection model.

It enables buyers to name their own price, often

binding, for a specific good or services generating

demand

A consumer posts his project with a set budget online

and within outs; companies review the customers

requirements and bids out the project.

Then the customer will review the bids and selects the

company that will complete the project.

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C2B e-commerce (cont)

Generally, in the C2B ecommerce, the customer requests

a specific service from the business.

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EXAMPLE:

Mr. Leta, an Ethiopian, needs to travel Indiafor his personal case. He requires a flight

on the first day of January and he is willing

to pay Br 500 only. Here this requisitionwill display in C2B webs. In addition, the

Ethiopian Air Lines can be interested to

take him to New Delhi, even the normaltrip costs more than Br 500 rather than of

flying with empty seats.

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Websites engaged in C2B e-

commercerazerfinish.com,

ReverseAuction.com,

priceline.com,

etc.

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4. Consumer-to-Consumer (C2C) e-

commerce

It facilitates the online transaction of goods or services between

two peoples.

However, there is not visible intermediary involved, but the parties

cannot carry out the transactions without the platform, which is

provided by the online market such as eBay.

Examples:

Advertisement of personal services over the internet.

Selling of knowledge and experts online.

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C2C e-commerce (cont)

In the C2C e-commerce, the consumer lists items for sale with

commercial auction site.

The participants in C2C ecommerce are unknown, not trusted

parties to sell goods and services to another one.

Example of C2C ecommerce web is eBay, where consumers sell

their goods and services to other consumers;

And PayPal (instead of purchasing goods and services directly from

the unknown, entrusted seller, the buyer can send money to thePayPal.

Then the PayPal notifies the seller that they will hold the money for

them until the goods have been shipped and accepted by the

buyer).

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Websites engaged in C2C

baazee.com I

CQ.com

MSN.com

ek.com.au

careeron.com.au

bidorbuy.com

etc.

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5. Peer-to-Peer (P2P) e-commerce

It is a technology in itself that helps people to directly

share computer files and computer resources without

having a central web server.

To use this, both the peers should have to install thesoftware so that they can communicate on the common

platform.

Examples:Sharing of musics, videos, and other digital files

electronically

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6. M-commerce

It refers to the use of mobiles devices for conducting the

transactions.

The mobile device holder can connect each other and can

conduct the business. This is not really a type of e commerce

but a mechanism in transaction.

Many M-Commerce applications involve internet enabled

mobile devices.

If such transactions are targeted to individual, to specific

location, at specific times, they are referred as location base

ecommerce (L- Ecommerce).

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7. Businessto-Employee

This is the subset of the inter-business category in which

the business organization delivers goods, services,

information to individual employees.

Examples:

Mobile employee in field representatives (B2ME).

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8. E-Government

In E-Government a government departments buys or

sells goods, services or information to business (G2B) or

to the individual citizens (G2C) or to other government

entity (G2G).

In E-Government; intranets, extranets and the internet

all are applied.

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9. E-Learning

When educations, training or examination are provided

online, it is called E-Learning.

It is practiced in Universities and organizations,

government departments.When organizations give training to their employees, it is

called E-Learning.

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10. None-Business e-commerce

The users of this e-commerce are academic institutions,

religious institutions, social organizations, government

agencies and non-for profit organizations.

Those none-business organizations use e-commerce to

reduce their expenses, to improve their general operation

and customer services.

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11. Business-to-Business-to-Customer

In this a business provides some product or service to aclient business.

The client by maintaining its own customers, which can

be own employees, to whom the product or service isprovided with out adding any value to it.

Here the client customer acts as intermediate.

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12. Intra-business e-commerce

Includes all internal organizational activities that involvethe exchange of goods, services or information among

various units and individual in that organization.

It is usually performed using intranets with in the

organization (business).

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13.Exchange-to-Exchange

It describes a public electronic market with many buyersand sellers.

Also, it is a formal system that connects exchanges to

one another.

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14. Collaborative commerce:

This is the process of communicating online

between individuals or groups.

Examples:designing a product together using screen

sharing, forecasting demand of products.

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Limitations of e-Commerce

Technical Limitations

Non-Technical Limitations

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Non-Technical Limitationscustomer fear of personal information being used wrongly

privacy issuescustomer expectations unmet

rules and regulations (ie. Jan 2004 Bill C6 - new privacy law)

security and privacy

vulnerability to fraud and other crimes

lack of trust and user resistance

fear of payment information being unsecure

tactile limitations

Schnieder, 3rd ed. added "many businesses face cultural and legal

obstacles"

legal issues outstanding such as jurisdiction

legal environment has many new and conflicting lawscultural obstacles

linguistic challenges

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Technical Limitations

costs of a technological solutionsome protocols are not standardized around the world

reliability for certain processes

insufficient telecommunications bandwidth

software tools are not fixed but constantly evolving (ie.

Netscape 3,4,4.7,4.75 etc.)

integrating digital and non-digital sales and production

information

access limitations of dial-up, cable, ISDN, wireless

some vendors require certain software to show featureson their pages, which is not common in the standard

browser used by the majority

Difficulty in integrating e-Commerce infrastructure with

current organizational IT systems

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CONCLUSION

The classification is based on orders in the weband the transaction partners. By this, when an

individual orders to sites for selling of certain

goods and services, and one company, by looking

on the web lets to buy those goods and services,

then this can be considered as Consumer-to-

Business (C2B) e commerce. Examples of such

webs are ebay,

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CONCULISION

When educations, training or examination are

provided online, it is called E-Learning. And

Business-to Business (B2B) e commerce is also

called the EDI, which is commonly used andlargest form of e commerce. In this, both the

buyers and sellers are companies such as

manufacturers and wholesalers

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THE END

THANK YOU!!!