6.1 : E- Business and E-
commerce:
· Definitions
and concepts:
o E- Commerce: is specified in buying, selling,
transferring, services exchanging products and information through the
internet.
o E- Business: is larger than E- Business, it includes E-
Commerce adding other activities such as collaborating with business partners,
performing electronic transactions and providing services to customers.
· Types
of E- Commerce:
o B2B (Business to Business): the seller and the buyer are both
organizations.
o B2C (Business to customers): the seller is an organization and the
buyer is an individual.
o B2E (Business to Employees): organization provides services and
information to its employees.
o C2C (Customer to Customer): the seller and the buyer are both
individuals.
o G2C (Government to citizens)
(E- Government): government uses E- Commerce to deliver information and public services
to citizens.
· E-
Commerce and search:
o E- Commerce is developing and improving
which allow the users to access to more specific and relevant search results.
· Major
E- Commerce Mechanisms:
o Auction: is a competitive process in which either a
seller solicits consecutive bids from buyers or a buyer solicits consecutive
bids from sellers.
§ Forward Auction: 1 seller to many potential buyers. (The
highest bidder wins the item).
§ Reverse Auction: 1 buyer ( usually an organization) to many
sellers. (The lowest- price wins the auction).
· Benefits
and limitations of E- Commerce:
|
Benefits:
|
Limitation:
|
|
ü Making the organization a national and
international market.
ü Reduce the cost of processing.
ü Reduce distribution cost.
|
ü Lack of security standards.
ü Expensive accessibility.
ü Inefficient telecommunication bandwidth.
|
6.2: Business- to –Consumer (B2C),
electronic commerce:
·
Electronic Storefronts And Malls (E-
Tailing): Direct sale
of products and services via electronic storefronts or electronic malls:
o Electronic Storefronts: website for a single store.
o Electronic Malls (E-mail): group of individual shops under a single
internet address.
· Online
Service Industries:
o Cyber banking.
o Online Securities Trading.
o The Online Job Market.
o Travel Service.
· Issues
in E- Tailing:
ü Channel Conflict: a situation when companies face problems
with their regular distributors, when they sell directly to the customers
online.
ü Order Fulfillment: when companies sell directly to customers,
they must perform some of the following activities such as quickly find the
product to be shipped, packaging and collect the money from the customers.
· Online
Advertising:
o Advertising is an attempt to disseminate information in order to
influence a buyer-seller transaction.
o Advertising Methods:
ü Banners are electronic billboards.
ü Pop-up ad appears in front of the current browser
window.
ü Pop-under ad appears underneath the active window.
ü Permission marketing asks consumers to give their permission to
accept online advertising and e-mail.
ü Viral marketing is online “word-of-mouth” marketing.
6.3: Business- to – Business (B2B)
Electronic Commerce:
·
Sell- side Marketplace: B2B Model in which organizations sell to
other organizations
·
Buy- Side Marketplace: B2B Model in which organizations buy
needed products and services from other organization.
· Electronic
Exchange:
o Vertical Exchange: connect seller and buyer in an industry.
o Horizontal Exchange: connect the seller and buyer across many
industries.
o Functional Exchange: needed services such as temporary help or
extra office space are traded on an “as-needed” basis.
6.4: Electronic Payments:
·
Electronic Checks.
·
Electronic Credit Card.
·
Purchasing Cards.
·
Electronic Cash.
6.5: Ethical and Legal Issues in E-
Business:
· Ethical
Issues:
o Privacy: ecommerce provides opportunities for
businesses and employers to track individual activities on the WWW using
cookies or special spyware.
o Disintermediation: middlemen or intermediaries (1)
provide information, and (2) perform value-added services such as consulting.
· Legal
Issues Specific to E- Commerce:
o Fraud on the Internet
o
Domain Names
o
Domain Tasting
o
Cyber squatting
o
Taxes and other Fees
o
Copyright
