Tutorial 9: Electronic Commerce

E-Commerce Categories

E-commerce refers to the process of developing, marketing, selling, delivering, servicing, and paying for products online

Business-to-Consumer: Selling goods or services to individuals

• Subscription
• Content providers
• Transaction brokers
• Service providers
• Portals

Business-to-Business: Selling goods and services to other businesses or nonprofit organizations

• Online retailers
• Liquidation brokers
• Business service providers

Consumer-to-Consumer: Individuals selling to other individuals

• Online auctons
• Social network sites used for e-commerce

Business-to-Government: Performing transactions with the government

• Tax filings
• Tax payments
• Financial reporting to government agencies

 Why Use the Internet for Commerce?

1. Ubiquity
2. Global Reach
3. Social Technology
4. Universal standards
5. Information richness
6. Interactivity
7. Information density
8. Personalization & Customization

Companies must consider...

How to sell, advertise and market on the Internet

How to use the above mentioned features of the Internet to do business

How to include the Internet basics in their business

• Facebook
• Youtube
• Twitter
• Blogs
• Websites  

Advertising and Marketing on the Internet

Advertising: a paid announcement that attracts attention to a product, service, business, person, or idea.

The most successful advertising is directed at a very specific audience 

Banner Ads: appear at the top of a Web page

Pop-up Ads: open in a new window

Text Ads: text links that appear within a Web page

Contextual Ads: change based on the viewed content

Sponsorship Ads: often a logo or simple statement

Video Ads: video formatted, appear prior to online videos

Interstitial Ads: appear as visitors browse between pages

Advertorials: paid editorial ads that contain opinions

Classified Ads: description of items for sale or something wanted

Building and E-commerce Business

Management Challenges

1. Developing a clear understanding of your business objectives, these drive the plan
2. Knowing the right technology to use to achieve objectives, these drive your costs, functionality, and policies

 Business model: Set of planned activities designed to result in a profit in the marketplace

1. Value Proposition
2. Revenue model
3. Market opportunity
4. Competitive environment
5. Competitive advantage
6. Market strategy
7. Organizational Development
8. Management team

An E-commerce business model uses the unique qualities of the Internet to support the business model