Presentation

Information System and Modern World

➢ Presented by:

➢Syed Fareed Haider

➢Amanullah
➢Farhan Sajid
➢ Topic:

➢Key concepts in e-commerce: Digital markets and digital goods in a global

marketplace.
➢E-commerce business models.
➢Social networking and the wisdom of crowds.
➢ Key Concepts in E-Commerce

➢Definition:
E-commerce, or electronic commerce, refers to the buying and selling of
goods and services over the internet.
➢E-Commerce Platforms:
Online businesses operate through various platforms. Self-hosted
platforms like WooCommerce and Magento provide customizable solutions
for businesses to manage their own online stores. Hosted platforms like
Shopify and BigCommerce offer ready-made solutions with integrated
payment and marketing tools.
Cont'd

Marketplaces such as Amazon, eBay, and Etsy allow third-party sellers to

list their products and reach a wider customer base without managing
their own website infrastructure.
➢Payment Methods in E-Commerce:
Seamless and secure payment options are crucial for e-commerce success.
Businesses use credit and debit cards, digital wallets such as PayPal, Apple
Pay, and Google Pay, and increasingly, cryptocurrencies like Bitcoin. Many
retailers also offer "Buy Now, Pay Later" (BNPL) options, such as Klarna and
After pay, allowing customers to pay in installments. Payment security is a
top priority, with businesses using encryption, fraud detection systems,
and secure payment gateways to protect customer transactions.
Cont'd

➢Logistics and Supply Chain Management:

Efficient logistics and supply chain management are essential for timely
order fulfillment. Businesses must manage inventory effectively to prevent
stock shortages or overstocking. Warehousing solutions, both in-house and
through third-party logistics (3PL) providers, help store products before
shipping. Reliable delivery services, including companies like FedEx, UPS,
and DHL, ensure fast and secure order fulfillment. Handling returns and
refunds efficiently is also vital for maintaining customer trust and
satisfaction.
Cont'd

➢ Legal and Regulatory Compliance:

E-commerce businesses must comply with various legal requirements to
operate successfully. Consumer protection laws ensure fair pricing, honest
advertising, and secure transactions. Data privacy regulations, such as
GDPR and CCPA, require businesses to handle customer data responsibly.
Taxation laws, including sales tax and VAT, vary by region and must be
adhered to for legal compliance. Additionally, protecting intellectual
property through trademarks, copyrights, and patents prevents brand and
product imitation.
➢ Digital markets and Digital Goods in a Global Marketplace

➢ Digital Markets:
Digital markets refer to online platforms where businesses and consumers
interact to buy and sell goods and services. Unlike traditional markets,
digital markets operate in a virtual space, eliminating geographical
limitations and enabling transactions between buyers and sellers
worldwide. These markets encompass various industries, including e-
commerce, digital services, and software distribution. Companies such as
Amazon, Alibaba, and eBay facilitate global trade, while platforms like
Fiverr and Upwork provide digital services across borders.
Cont'd

➢ Digital Goods in the Global Economy:

Digital goods are intangible products that can be purchased, downloaded,
or accessed online. These include e-books, software, online courses, music,
video streaming, and virtual goods in gaming environments. Unlike physical
products, digital goods can be distributed instantly with minimal
production and shipping costs, making them highly profitable. Companies
such as Apple, Netflix, and Microsoft generate significant revenue from
digital goods, demonstrating their growing importance in the global
economy.
➢ E-Commerce Business Models

➢ Business-to-Business (B2B) Model:

The B2B model involves transactions between businesses rather than
direct sales to consumers. Manufacturers, wholesalers, and service
providers operate in this model. Companies like Alibaba, Salesforce, and
Intel supply goods or services to other businesses, helping them improve
operations and efficiency. B2B transactions typically involve bulk orders,
long-term contracts, and customized solutions.
➢ Business-to-Consumer (B2C) Model:
Cont'd

The B2C model is the most common, where businesses sell products or
services directly to individual customers. Online retail stores, restaurants,
and entertainment platforms fall under this category. Companies like
Amazon, Netflix, and Apple use this model to sell physical and digital
products. B2C businesses focus on marketing, customer experience, and
convenience to attract consumers.
➢ Consumer-to-Consumer (C2C) Model:
In the C2C model, consumers sell products or services to other consumers,
usually through third-party platforms.
Cont'd

Websites like eBay, Etsy, and Facebook Marketplace facilitate peer-to-peer

transactions by providing a platform for individuals to list and sell items.
These businesses earn revenue through listing fees, transaction
commissions, or advertising.
➢ Consumer-to-Business (C2B) Model:
The C2B model allows individuals to provide goods or services to
businesses. This is common in freelance work, influencer marketing, and
crowdsourcing platforms. Websites like Upwork, Fiverr, and Shutterstock
enable professionals to sell their expertise, content, or services to business
Cont'd

in need of specific skills or creative assets.

➢ D2C (Direct-to-Consumer):
Manufacturers sell products directly to customers, bypassing retailers (e.g.,
Nike, Apple).
➢ Social Networking and The Wisdom of Crowds

➢ Introduction to Social Networking in E-Commerce:

Social networking has revolutionized e-commerce by providing businesses
with direct access to customers through online platforms. Social media
sites like Facebook, Instagram, TikTok, and Twitter enable brands to engage
with users, promote products, and enhance customer relationships. These
platforms facilitate seamless communication between businesses and
consumers, fostering trust and brand loyalty. Social commerce, where
users can purchase products directly through social media, has become a
growing trend, eliminating the need for separate online stores.
Cont'd

➢ Role of Social Media in Influencing Consumer Behavior:

Social networks significantly impact consumer behavior by shaping
purchasing decisions through user-generated content, reviews, and
influencer marketing. Many shoppers rely on recommendations from
influencers, friends, or online communities before making a purchase.
Platforms like YouTube and Instagram provide visual demonstrations of
products, enhancing consumer confidence. Additionally, brands leverage
targeted advertising, using algorithms to reach potential customers based
on their interests, preferences, and past interactions.
Cont'd

➢ The Concept of the Wisdom of Crowds:

The "wisdom of crowds" refers to the collective intelligence of a large
group of people, often leading to better decision-making than that of
individuals or experts. In e-commerce, this concept is seen in customer
reviews, ratings, and social proof, which help guide new buyers. Platforms
like Amazon, Yelp, and TripAdvisor rely on crowd-based feedback to rank
and recommend products. When multiple users provide insights and
opinions, it creates a more accurate reflection of a product’s quality and
reliability.
Cont'd

➢ Customer Reviews and Social Proof in Online Shopping:

One of the most powerful applications of the wisdom of crowds in e-
commerce is customer reviews. Shoppers tend to trust peer opinions more
than traditional advertisements. A high number of positive reviews
increases credibility, while negative feedback alerts businesses to product
or service issues. Social proof, such as user testimonials, influencer
endorsements, and best-seller rankings, encourages more sales by showing
that others trust and recommend a product. Companies often use real-
time sales pop-ups and ratings to create a sense of urgency and boost
conversions.
Thank You