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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