Ecommerce

1
E-commerce

• Describe E-Commerce
• Identify benefits and risks of E-Commerce
• Describe E-Commerce business models
• Describe E-Commerce Security and Encryption
• Describe EDI (Electronic Data Interchange)
• Describe trends and projections for E-Commerce
• Describe issues related to E-Commerce
• Describe order and payment processing
• Describe E-Commerce solution options

2
What isE-Commerce?

• The integration of communications, data
  management, and security technologies to allow
  individuals and organizations to exchange
  information related to the sale of goods and
  services.
• Major functions of E-Commerce include
• the buying of goods,
• the selling of goods, and
• performance of financial transactions on the
  Internet.

3
E-Commerce Advantages for Businesses

• Reduced Costs
• Increased Customer Satisfaction
• More Effective Data Management
• Potentially Higher Sales

4
E-Commerce Advantages for Consumers

• Convenience
• Easier Comparison Shopping
• Wider Selection of Goods

5
E-Commerce Risksfor Businesses

• Need for a robust, reliable web site
• Fraudulent transactions
• Customer reluctance to purchase online
• Increased competition

6
E-Commerce Risksfor Consumers

• Possible Security Issues
• Possible Privacy Issues
• Purchasing from photos descriptions
• Possible difficulty with returns

7
E-CommerceBusiness Models

• B2C Business-to-Consumer
• B2B Business-to-Business
• C2C Consumer-to-Consumer
• B2G Business-to-Government

8
Electronic Data Interchange (EDI)

• EDI is the transfer of data between different
  companies using networks.
• This facilitates the exchange of standard
  business documents including purchase orders and
  invoices.
• EDI is not new it has been in existence since
  the 1960s.
• Organizations that exchange EDI transmissions are
  called trading partners.
• Newer technologies such as XML and Web Services
  are replacing traditional EDI by allowing trading
  partners virtually unlimited opportunities to
  customize their information exchange over the
  Internet.

9
E-CommerceStatistics

• SourceForrester Research as reported on
  http//www.nua.com/surveys/

10
Typical InternetUser

• A recent study by Harris Interactive discussed
  on Clickz.com (http//www.clickz.com/stats/sectors
  /geographics/article.php/5911_1011491 ) found
  that the typical Internet user in the U.S. now
  mirrors the U.S. population.
• Male 49
• Female 51
• Household Income 40,816
• Adults 18-49 74

11
E-CommerceIssues

• Intellectual Property
• Security
• Fraud
• Taxation
• International Commerce

12
Questions

• Describe three advantages of e-commerce for an
  entrepreneur just starting a business.
• Describe three risks that businesses face when
  engaging in e-commerce.

13
Order Payment Processing

• E-Commerce Payment Models
• Cash
• Check
• Credit
• Smart Card
• Micropayments

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Credit Card OrderProcessing Flow
15
E-CommerceStorefront Solutions

• Instant Online Storefront
• Yahoo!, Bigstep, Earthstores, FreeMerchant
• Off-The-Shelf Shopping Cart Software
• Miva Merchant, Mercantec
• Custom Built Solution
• IBM's WebSphere Commerce Suite, Microsoft's
  Commerce Server
• Visual Studio.NET, Macromedia Dreamweaver MX,
  IBMs WebSphere Commerce Studio
• Semi-Custom Built Solutions on a Budget
• E-Commerce add-ons for FrontPage and Dreamweaver
• Paypal order processing
• Free shopping cart scripts

16
Questions

• List three payment models commonly used on the
  Web. Which one is the most popular, why?
• Have you purchased online? If so, think of the
  last item that you purchased.
• Why did you purchase it online instead of at a
  store?
• Did you check to see if the transaction was
  secure? Why or why not?
• How will your shopping habits be different in the
  future?
• Describe three types of e-commerce solutions
  available. Which provides the easiest entry to
  e-commerce? Explain.