Electronic Commerce: Applications and Issues
Overview of E-Business & E-Commerce:
o Electronic commerce (e-commerce, EC) describes the buying, selling, transferring or exchanging of products, services or information via computer networks, including the Internet.
o E-business is a broader definition of EC, including buying and selling of goods and services, and also servicing customers, collaborating with partners, conducting e-learning and conducting electronic transactions within an organization.
o Types of E-Commerce:
1. Business-to-Consumer (B2C)
2. Business-to-Business (B2B)
3. Consumer-to-Consumer (C2C)
4. Business-to-Employee (B2E)
5. E-Government
6. Mobile Commerce (m-commerce)
o Benefits of E-Commerce:
§ Benefits to organizations
o Makes national and international markets more accessible.
o Lowering costs of processing, distributing, and retrieving information.
§ Benefits to customers
o Access a vast number of products and services around the clock (24/7/365).
§ Benefits to Society
o Ability to easily and conveniently deliver information, services and products to people in cities, rural areas and developing countries.
o Limitations of E-Commerce:
§ Technological Limitations
o Lack of universally accepted security standards
o Insufficient telecommunications bandwidth
o Expensive accessibility
§ Non-technological Limitations
o Perception that EC is unsecure
o Unresolved legal issues
o Lacks a critical mass of sellers and buyers
· Business-to-Consumer (B2C) Electronic Commerce:
o An electronic storefront is a Web site that represents a single store.
o Electronic malls are collections of individual shops under a single Internet address.
o B2C electronic commerce is also known as e-tailing.
o Issues in E-Tailing:
§ Channel conflict occurs when manufacturers disinter mediate their channel partners, such as distributors, retailers, dealers, and sales representatives, by selling their products directly to consumers, usually over the Internet through electronic commerce.
§ Order fulfillment involves finding the product to be shipped; packaging the product; arrange for speedy delivery to the customer; and handle the return of unwanted or defective products.
· Business-to-Business (B2B) Electronic Commerce:
o In B2B e-commerce, the buyers and sellers are organizations.
o B2B Sell-Side Marketplace:
§ In the sell-side marketplace, organizations sell their products or services to other organizations electronically from their own Web site and/or from a third-party Web site.
o B2B Buy-Side Marketplace:
§ The buy-side marketplace is a model in which organizations buy needed products and services from other organizations electronically.
o Electronic Exchanges:
§ Exchanges have many buyers and many sellers.
· Electronic Payments:
o Electronic payment systems enable you to pay for goods and services electronically.
§ Electronic checks (e-checks)
§ Electronic credit cards
§ Purchasing cards
§ Electronic cash
1. Stored-value money cards
2. Smart cards
3. Person-to-person payments
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