Workshop on Delivery of

E-Services in Civil Society

E-Commerce Fundamentals
Sukaina Al-Nasrawi
Associate IT Officer
ICT Division
Outline

• Introduction: What is E-Commerce

• Categories
C t i off E-Commerce
EC

• E-Commerce Advantages / Disadvantages

• E-Commerce Legal Issues

• E-commerce
E commerce Payment Methods

• E-Commerce Guide: Step-by-Step

• E-Commerce in the ESCWA Region

What is E-Commerce

• E-commerce is :

– A general term that refers to the use of electronic

communication to do business.

• Specifically, the transfer of information (transactions), over the

Internet

• Covers a range of different types of businesses from

consumer based retail sites (Amazon
consumer-based (Amazon.com),
com) through auction
and music sites like (eBay or MP3.com), to business
exchanges trading goods or services between corporations.
What is E-Commerce

• E-commerce Big Picture

Supply Demand
Market
of for
Intermediaries
Information Information

• Some ppeople
p use the term e-business to refer to all the
categories of e-commerce
E-Commerce Categories

• There are 5 general e-commerce categories:

– Business to Consumer (or B2C) e-commerce

– Business to Business (or B2B) e

e-commerce
commerce
(sometimes called e-procurement)

– Business processes that support buying and selling activities

– Business-to-government (or B2G) e-commerce

– Consumer-to-consumer (or C2C) e-commerce

E-Commerce Categories

Category Description
B2C Businesses sell products or services to individual customers
(consumers)

B2B Businesses sell products or services to other businesses

Business Businesses and other organisations maintain and use information to

processes identify and evaluate customers, suppliers and employees (and to
support buying, selling hiring, planning and other activities).

B2G Business sell goods or services to governments and government

agencies
i

C2C Participants in an online marketplace can buy and sell goods with
each other
E-Commerce Categories Example

• A computer manufacturing company performs the

following activities on the Internet:

– Sells computers to individuals (B2C)

– Purchases parts (e
(e.g.
g hard drives
drives, power supplies etc
etc.)) from
a supplier (B2B)
– Hires staff, manage
g customer accounts, advertise, etc.
(Business processes)
– Sells computers to the Government to be used in schools,
public
bli access points
i t etc.
t (B2G)
– On eBay.com individuals buy and sell this brand of
computers (C2C)
 E-Commerce Advantages / Disadvantages

• E-commerce increases sales, • Inability to sell some products

decreases cost especially those of high costs

• Provides purchasing
• Many products require a large
opportunities for buyers
(businesses can identify new number of people to purchase to be
suppliers and partners) viable

• Online availability • Cultural and Legal Impediments

E-Commerce Legal Issues

• The laws in tangible world apply on-line, and often

new ones for the web are created.

• Practical Legal Issues related to e-commerce

include:
– Contracts

– Terms & Conditions

– Data privacy
E-Commerce Legal Issues

• Contracts
– A contract is formed when one p
party
y accepts
p the offer of
another party.

– Although case law is limited,

limited one must assume that it is a
legally binding contract acceptance if a user:
• Clicks a button on a Web page

• Enters information on a Web form

• Downloads a file from a Web site

– Ordinary signatures are replaced by digital signatures (to

reduce forgeries)
E-Commerce Legal Issues
• Terms and Conditions
– Rules Web sites visitors must follow

– Purpose is to limit the owner’s liability for what might be done with
the information entered

– The visitor is held to the terms, even if he/she did not read the text or
click an accept button; the visitor is bound by simply using the site

Conditions of Use of
Amazon.com
E-Commerce Legal Issues
• Data Privacy

– Web sites should include a statement specifying

how any personal information collected is used

=> Users will be confident that their personal information will not be
sold to other vendors or organisations

– Users should be provided with a secure method

of entering this information
E-Commerce Payment Methods

• Payment systems are still evolving

• Electronic payments have become far cheaper

than mailing paper checks

• There are currently 4 primary payment methods:

– Cash
– Checks
– Credit cards (most popular method online)
– Debit cards
E-Commerce Payment Processing

• Processing of payment is done in 3 steps as follows:

• The merchant authenticates the payment card to

ensure it is valid and not stolen
Step
p1

• The merchant checks with the payment card issuer to

ensure that credit or funds are available and p
puts a hold
on the credit line or the funds needed to cover the
Step 2 charge

• Settlement occurs, usually a few days after the

purchase, which means that funds travel between
Step 3 banks and are placed into the merchant’s account
E-Commerce Guide: Step-by-Step
• To create your website and marketing your company overseas using the
internet and key service providers. Set up a website catering to the
requirements of your organizations products or services as follows:

•The first important decision you'll make is selecting a domain name

for your company's international website, which can have significant
Choose a Domain Name marketing implications

•Registering with the major search engines in the countries you wish
Register at major Search to target will make it easy for your potential customers to find your
website.
Engines

•A dependable web hosting service to host your website can make a

lot of difference to your internet business. Value-added services such
Select a dependable Web as site maintenance, search registration, site development helps in
Host promoting your site.

Localize and
•If you wish to target both local and international customers, it is
internationalize your important to tailor your website to local language and cultural tastes.
website content

•Offer
Offer your customers a variety and easy methods of payment options
that meet local business practices. When doing international
Execute Orders business, be aware of other considerations like as taxes, shipping,
customs duties, and after sales service.
E-Commerce in the Region
• E-commerce sector in the region has not realized its full
potential

• Only 60% of EMCs have:

Internet Users Penetration rate > World average

% Internet Users , 2008

% 65.15

51.95 52.22

34.04 34.26 34.52

30.55
24.46 23.32
15.42 6 9 16.84
15 42 16.79 15 09 16.02
15.09 16 02
8.58 9.19
1 1.61

Source: ITU 2008

E-Commerce in the Region

• Several obstacles hinders the growth of the sector

in the region.
g These include:

– Inadequate ICT infrastructure,

– Legal challenges, social and cultural resistance to using

& adopting technology
technology, and

– Low
o levels
e eso of ICT
C literacy.
te acy
Conclusion

• E-Commerce is the new mean for doing business

in the information age
g

• Additional efforts must be exerted in the region

g to
promote e-commerce

• Building confidence in the electronic environment must be

prioritized since it facilitates the use and proliferation of
e commerce services among all stakeholders
e-commerce stakeholders.
Thank You