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INTRODUTION TO
E-COMMERCE By producer:
Jhoan Reina
Jhony
Julian Martinez
Paola martinez
In 1994, e-commerce as we now know it did not exist. In 2005, just ten years later around 110 million American consumers are expected to spend about $142–$172 billion
ONLINE CONSUMER
e-commerce technologies allow for interactivity,meaning they enable two-way communication between merchant and consumer.Television, for instance, cannot ask viewers any questions or enter into conversations
HOUSEHOLDSTHE GROWTH OF THE INTERNET, MEASURED BY NUMBEROF INTERNET HOSTS WITH DOMAIN NAMES
In traditional commerce, a marketplace is a physical to make a purchase. E-commerce, in contrast, is characterized by its ubiquity: it is available just about everywhere, at all times. It liberates the market from being
restricted to a physical space and makes it possible to shop from your desktop, at home.
UBIQUITY
B2B BUSINESS TO BUSINESS
e-commerce—use of the Internet for business-to-business commerce— expanded about 30% in 2005 to more than $1.5 trillion (U.S. Department of Commerce, 2005). The most commonly discussed type of e-commerce is Business-to-Consumer (B2C) e-commerce, in which online businesses attempt to reach individual consumers.
Even though B2C is comparatively small ($140–$170 billion in 2005), it has grown exponentially since 1995, and is the type of e-commerce that most consumers are likely to encounter. Within the B2C category, there are many different types of business models.
https://youtu.be/fyjST6Uwjww
Chapter 2 has a detailed discussion of seven different B2C business mod. Business-to-Business (B2B) e-commerce, in which businesses focus on selling to other businesses, is the largest form of e-commerce, with over $1.5 trillion in transactions in the United States in 2005. There was an estimated $13 trillion in business-to-business exchanges of all kinds, online and offline, in 2002, suggesting that B2B e-commerce has significant growth potential (eMarketer, Inc., 2003
The ultimate size of B2B e-commerce could be huge. There are two primary business models used within the B2B arena : Net marketplaces, which include e-distributors, e-procurement companies, exchanges and industry consortia, and private industrial networks, which include single firm networks and industry-wide networks
BUSINESS TO CONSUMER B2C
The most commonly discussed type of e-commerce is Business-to-Consumer (B2C) e-commerce, in which online businesses attempt to reach individual consumers. Even though B2C is comparatively small ($140–$170 billion in 2005), it has grown exponentially since 1995, and is the type of e-commerce that most consumers are likely to encounter. Within the B2C category, there are many different types of business models. Chapter 2 has a detailed discussion of seven different B2C business models: portals, online retailers, content providers, transaction brokers, market creators, service providers, and community providers
While most companies that sell directly to consumers can be referred to as B2C companies, the term became immensely popular during the dotcom boom of the late 1990s, when it was used mainly to refer to online retailers, as well as other companies that sold products and services to consumers through the Internet. Although numerous business to consumer companies fell victim to the subsequent dotcom bust as investor interest in the sector dwindled and venture capital funding dried up, B2C leaders such as Amazon.com and Priceline.com survived the shakeout and went on to rank among the most successful companies in the world.
CONSUMER-TO-CONSUMER (C2C)
e-commerce provides a way for consumers to sell to each other, with the help of an online market maker such as the auction site eBay. Given that in 2005, eBay generated more than $44 billion in gross merchandise vol¬ume around the world, it is probably safe to estimate that the size of the global C2C market in 2006 will be over $50 billion (eBay, 2006).
In C2C e-commerce, the consumer prepares the product for market, places the product for auction or sale, and relies on the market maker to provide catalog, search engine, and transactionclearing capabilities so that products can be easily displayed, discovered, and paid for
SPIDERWEB
The World Wide Web conjures up images of a giant spider web here everything is conected to everything is.Purchasing else in a random pattern, and you can go from one edge of the web to another by just following the right links. Theoretically, that’s what makes the Web different from a typical index system—you can follow hyperlinks from one page to another. In the “small world” theory of the Web, every Web page is thought to be separated from any other Web page by an average of about 19 clicks.
In 1968, sociologist Stanley Milgram invented small-world theory for social networks by noting that every human was separated from any other human by only six degrees of separation. On the Web, the small world theory was supported by early research on a small sampling of Web sites
But recent research conducted jointly by scientists at IBM, Compaq, and AltaVista found something entirely different. These scientists used AltaVista’s Web crawler “Scooter” to identify 200 million Web pages and follow 1.5 billion links on these pages
PURCHASING
The activity of acquiring goods or services to accomplish the goals of an organization.The major objectives of purchasing are to (1) maintain the quality and value of a company's products, (2) minimize cash tied-up in inventory, (3) maintain the flow of inputs to maintain the flow of outputs, and
4) strengthen the organization's competitive position. Purchasing may also involve (a) development and review of the product specifications, (b) receipt and processing of requisitions, (c) advertising for bids, (d) bid evaluation, (e) award of supply contracts, (f) inspection of good received, and (g) their appropriate storage and release.
WHAT IS E-COMMERCE? HOW DOES IT DIFFER FROM E-BUSINESS? WHERE DOES IT INTERSECT
WITH E-BUSINESS?
There is a debate among consultants and academics about the meaning and limitations of both e-commerce and e-business. Some argue that e-commerce encompasses the entire world of electronically based organizational activities that support a firm’s market exchanges—including a firm’s entire information system’s infrastructure (Rayport and Jaworksi, 2003). Others argue, on the other hand, that e-business encompasses the entire world of internal and external electronically based activities, including e-commerce (Kalakota and Robinson, 2003)
Others argue, on the other hand, that e-business encompasses the entire world of internal and external electronically based activities, including e-commerce (Kalakota and Robinson, 2003). We think that it is important to make a working distinction between e-commerce and e-business because we believe they refer to different phenomena
For purposes of this text, we will use the term e-business to refer primarily to the digital enablement of transactions and processes within a firm, involving information systems under the control of the firm. For the most part, in our view, e-business does not include commercial transactions involving an exchange of value across organizational boundaries.
EXAMPLE: a company’s online inventory control mechanisms are a component of e-business, but such internal processes do not directly generate revenue for the firm from outside businesses or consumers, as e-commerce, by definition, does. It is true, however, that a firm’s e-business infrastructure provides support for online e-commerce exchanges; the same infrastructure and skill sets are involved in both e-business and e-commerce. E-commerce and e-business systems blur together at the business firm boundary, at the point where internal business systems link up with suppliers or customers, for instance. E-business applications turn into e-commerce precisely when an exchange of value occurs (see Mesenbourg, U.S. Department of Commerce, August 2001 for a similar view).
INFORMATION ASYMMETRY
Seller
Buyer
Inequality of market information between the parties involved in a transaction. Generating unequal benefits.
UNIQUE FEATURES OF E-COMMERCE TECHNOLOGY
UBIQUITY
E-commerce is available anytime in all the world, allows make purchases unlimited of physical space, everybody can make purchases without moving to a place.
GLOBAL REACHThe technology reaches almost all parts of the world and allows that the Commerce is enabled across cultural and national boundaries seamlessly and without modification. includes potentially billions of consumers and millions of businesses worldwide.
Messages reach all people around the world
UNIVERSAL STANDARDS
Technology standards used to develop e-commerce are the same for everyone and do not create restrictions on the parties involved in transactions.
The technology is the same worldwide.
RICHNESSThis feature refers to the quality and content of the messages, because the web allows you to use images, audio or video in a single space, to display and promote products and thus motivate potential buyers.
INTERACTIVITY
E-commerce allows consumers and sellers interact, through a web site can exchange information about taste, price, purchase specifications and personal information.
This feature distinguishes it from the traditional technology trade
Interaction between consumer and merchant
INFORMATION DENSITY
Merchants and consumers have as much information at your disposal and the adapt your needs.
E-commerce technologies reduce information collection, storage, processing, and communication costs.
Equality in technology makes it easy to find many of the suppliers, pricing and delivery of a specific product anywhere in the world.
PERSONALIZATION/CUSTOMIZATION
Is the targeting of marketing messages to specific individuals or groups individuals by adjusting the message to a person's interests.
changing the delivered product or service based on a user's preferences or prior behavior.
Personalization Customization
MARKETSPACE
e-commerce technologies allows create an market extended beyond traditional geographical boundaries market, where prices and product information is available for all markets at any time.
to make purchases not required to move to a physical store, you can make from the location of the consumer through a website, this new market is called maketspace
BENEFITS OF UNIVERSAL STANDARDS
market entry costs The cost that merchants must pay just to bring their goods to market are lower
search costs
Effort required to find suitable products. And by creating a single, one-world marketspace, where prices and product descriptions can be inexpensively displayed for all to see.
price discovery
companies and individuals can find better prices in a simpler, faster, and more accurate.
ONLINE AND TRADITIONAL TRANSACTIONS IN TERMS OF RICHNESS
TRADITIONAL
ONLINE
VS
• Provide personal, face-to-face service using aural and visual cues when making a sale.
• The larger the audience reached, the less rich the message
• The service is not face to face, but message many tools used as images, audio and video.
• The reach of the message is for millions of people without losing quality.
BUSINESS CONSEQUENCES FROM INCREASE THE INFORMATION DENSITY
1. In e-commerce markets, prices and costs become more transparent. Price transparency refers to the ease with which consumers can find out the variety of prices in a market.
2. cost transparency
The ability of consumers to discover the actual costs that merchants pay for products
3. Market segmentation of the merchants
Merchants to know their customers to segment the market into groups willing to pay different prices for a good or service. Focusing their products correctly and thereby obtain higher profits. Merchan
t
EXAMPLE B2C
The company's reference model is B2C Amazon, being one of the most important worldwide sales of books and CDs through its website
EXAMPLE B2B
There is encompassed in this model the "virtual company" where standards are activated by outsourcing to specialized companies, an example of the viability of this model are the companies General Motors and Ford.
EXAMPLE C2C
The most important example of a company that makes C2C is Ebay.com, is undoubtedly the leader in turnover of this model
https://www.youtube.com/watch?v=P-qNGtH3UKE
P2P WEB SITES
www.kazaa.com
Internet technology system
www.skype.com
INTERNET AND THE WEB
INTERNET
The first interconnected network was founded in 1969 and with it the greatest invention mankind has ever seen to this day. Today people we can not imagine a world where there is no internet, as it is a must in our lives, we need to make all our activities.The internet is a huge source of knowledge, it changed the way people learn and to find available information, how to study and do research. But the most important feature is that the Internet is the medium most current largest, thanks to the development of tools such as Messenger, email or social networks, people are always communicated with others
WEB SEARCHERS
A Web browser is a meta search engine which results listings may be sent directly, is undoubtedly one of the main tools of the Internet has made it easier to carry out academic, labor activities and daily life.
Searchers adapt to the need to search each user can be done very easily from general searches to advanced, each user can choose the browser that meets your needs.
Most search engines rank their results according to the keywords entered by the user, many people are driven by the idea that the first results to come out in the browser page will be those with the most valuable, relevant information and helpful
Technology has changed radically and visibly the way we manage our work and social life. Our generation experienced great changes in the last couple of decades that growth was equal to the last century. The way we interact, communicate and perform our work is very different from how they lived just 15 years ago. Many things changed for the better and also many negative consequences, but you can not deny that progress has been very significant. Among the breakthroughs are the devices that we use today did not exist a few years ago, from cell phones to the new "iPad", and of course the biggest change: the Internet.
PHONE
The cell phone has become a necessary tool for people, now there are millions of mobile phones in our country. Thanks to the mobile phone people can be communicated, but the experience is different from what you have with a smartphone as its scope of the latter is much larger thanks to the internet connection. Today life is simpler because it is much easier to contact people, this device is useful for use in emergencies, school work became easier, plus it helps us save time, though, privacy they enjoyed those few years has been lost.
The early years of e-commerce is "without government", while e-commerce today is "stronger regulation and governance". When e-commerce has just begun to implement, the government has not established rules and regulations for e-commerce business and no control over it. While e-commerce is now taking "stronger regulation and governance" that the early years of e-commerce, e-commerce business was protecting the rules and regulation of the Internet around the world and the government was to maintain an eye on him.
LIMITATIONS ON THE GROWTH OF E-COMMERCE
The early years of e-commerce is the practice "pure online strategies", where organizations are doing their business in the virtual world without the physical store in the real world. Whereas electronic commerce practice today is "mixed" bricks and clicks "strategy" that their businesses are run, both as they are doing their transactions on the Internet and in the physical store
ESTADOS UNIDOSMultiply these difficulties five, agrégueseles a weak communications infrastructure, lack of connectivity, lower percentage of personal computers per capita and lack of regional distribution centers and have a rough idea of what the gap between Europe developed, yet the behind the US, and Latin America. However, even with all these obstacles, companies and public and private entities in the region can benefit from the E-Commerce:
•Access to a global catalog of products with millions of businesses, regardless of their geographic location, to choose the best quality - price within the economic framework available•Saving time and money in getting information when choosing between various options for buying a particular product, compared with the efforts by traditional means.•Lower purchase price, for a product to move directly between the supplier and the customer transport costs and intermediaries are eliminated in the value chain.
example: tourism, since when planning holiday travel, business or work Internet saves time and allows you to view the facilities of hotels, convention centers and places to see
