Introduction: What do you need to build an E-commerce Site?

M A El-Affendi

PSU

What are E-commerce Systems?

• A Special type of WEB application that makes it possible to perform business transactions on the Internet.

• Many types: B2C, B2B, G2C, C2C

• A fast growing area: billions of dollars are now invested in building e-bus systems.

Requirements:

• Vision and Motivation

• A digital certificate.

• A domain name.

• Merchant account.

• A private server or a hosting site.

Software Development Requirements

• You need to build the site and test it on your local machine.

• For this purpose you need a local WEB server (For this course we will use IIS 5 or later).

• Visual Studio.Net.

• SQL database server.

Bypass proxy

Visual Studio.Net

• Full support of ASP.NET.

• Many Languages.

• Visually Building your WEB pages.

• The Codebehind concept.

• Creating and accessing databases.

• Use F5 to test your site.

Server controlsToolbox SolutionExp.

Properties

Server Explorer

SQL server (MSDE)

WEB Business Models

• Business models the on the Web include:– The Storefront Model– The Auction Model– The Portal Model– The Name-Your-Price Model– The Comparison Pricing Model– The Demand Sensitive Pricing model– The B2B Exchange Model

E-business

• An e-business can be defined as a company that has an online presence.

• E-commerce businesses allow customers to sell, trade, barter over the Web

• The company’s policy, operations, technology and ideology define its business model

Storefront Model

• Storefront model enables merchants to sell products on the Web– transaction processing, security, online payment, information

storage

• E-commerce allows companies to conduct business 24-by-7, all day everyday, worldwide

• An e-commerce storefront should include – online catalog of products, order processing,

secure payment, timely order fulfillment.

Shopping Cart Technology

• Shopping Cart– An order-processing technology allows customers to

accumulate lists of items they wish to buy as they continue to shop.

• The shopping cart is supported by – the product catalog, merchant server, database

technology

• Many companies combine a number of purchasing methods to give their customers a wide array of options.

Online Shopping Malls

• Online Mall– A collection of online retailers that offer their products and

services on a single site.

• In an online mall, consumers can use the mall’s shopping cart technology to purchase items from many stores in a single transaction.

• Online malls act as shopping portals directing traffic to the leading shopping retailers for a specific product.

• Online malls offer speed and added convenience to a customers shopping experience.

Auction Model

• Online auction sites act as forums through which Internet users can log-on and assume the role of either bidder or seller.

• Sellers post items they wish to sell and wait for buyers to bid.

• Auction sites collect a commission on every successful auction.

Portal ModelPortal Model

• Portal sites give visitors the chance to find almost everything they are looking for in one place.

• horizontal portals– portals that aggregate information on a broad range of

topics.– Yahoo!, AltaVista, Google

• vertical portals – portals that offer more specific information within a

single area of interest.– WebMD, IMDB, FirstGov

Dynamic Pricing Models

• The Web has changed the way products are priced and purchased

• Comparison pricing model– Comparison pricing Web sites use shopping bot

technology to find the lowest price for a given item

• Demand-sensitive pricing model– Group buying reduces price as volume sales increase

• Name-your-price model – Name-your-price for products and services.

Dynamic Pricing Models

• Bartering Model– Individuals and business trade unneeded items for items

they desire.– Ubarter.com, isolve.com

• Rebate Model– Sites offer rebates on product at leading online retailers in

return for commission or advertising revenues.– eBates

• Free offering model– Free products and services generate high traffic– Freemerchant, Start Sampling, FreeSamples.com

B2B Exchanges

• B2B exchanges – businesses buy, sell, auction, barter, distribute

and ship products and services online

• B2B e-commerce – buying, selling, partnering, bartering or trading

conducted between two or more businesses

Online Trading Models

• Online trading empowers the average investor to handle their own investments

• Trading sites offer– Research– Investments analysis– Stock history– Simple buying and selling

• Online Trading sites include:– E*TRADE– Ameritrade– CharlesSchwab– Fidelity.com

Recruiting on the Web

• Resume tutorials, cover letter help, and free job searching available on the Web

• Employers can find new employees from a global pool of applicants

• Earn rewards for referring new hires to recruiters• Examples:

– Guru.com– Dice.com– Refer.com– Sixfigurejobs.com– Monster.com

Online News Services

• Internet and Web offer a 24-by-7 news source• It is important to check the information source as

rumors are often passed online• Independent and freelance content creators

compete with large scale industry players– CNN.com– ESPN.com– Drudge Report– Boston.com– Salon.com

Online Travel Services

• Customers now have the power to bypass a travel agent

• Discounts and low fares available online• Name-your-price for tickets, hotels and car rentals• “Last minute” fares often lower online• Examples:

– Expedia.com– Travelocity– Cheaptickets.com

Online Entertainment

• The Web is a form of entertainment• Interactive television will use the Internet to offer

interactivity to the world• MP3 and file-transfer technology threaten

copyright law• Examples:

– IMDB– Farmclub.com– MP3.com– Ain’t It Cool News

Online Automotive Sites

• Consumers access automobile information empowering them to make an informed buying decision

• Dealers use the Web to showcase vehicles• Online auto auctions give buyers more options• Examples:

– Auto.com– Autobytel.com– Autoparts.com

Selling Brainpower

• Unused patents and trademarks can be sold online• Outsourcing

– Hiring outside contractors or companies to complete projects and offer consulting.

• Contractors can find projects to match their needs on the Web

• Examples:– Hellobrain– Yet2.com– Question Exchange

Education Online

• E-learning is changing the way people learn.• Web-based training and education give the world

access to continuing education form their home• Many colleges and universities offer distance

learning and degree programs online• Examples:

– Click2learn– Saba– Smartforce– Varsitybooks.com

Click-and-Mortar Businesses

• Brick-and-mortar– Companies that operate solely offline with traditional

business practices

• Click-and-mortar– Companies operating with both an online and offline

presence

• Click and mortar companies have brand recognition, and an established customer base

• Examples:– Barnesandnoble.com– Bestbuy.com