‫جامعة البعث‬

‫كلية الهندسة المعلوماتية‬

‫السنة الخامسة‬

Electronic Commerce
Lecture1: Introduction to E-Commerce

Dr. Feda Jahjah

 Example of E-Commerce

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 E-Commerce and E-Business
• The Covid-19 pandemic has totally reshaped the global economy and the last few
years have remained like a rollercoaster ride for businesses. We can see a clear
transition of most business operations from offline to online.
• Electronic commerce is the use of technology, in particular the Internet, to conduct
business
• e-commerce generally refers to buying or selling
electronically, usually interactively
• e-business refers to conducting business
activities, including business to business activities,
using electronic communication
 Definition of E-Commerce
E-commerce: Electronic commerce (e-commerce)
All electronically mediated information exchanges between an organization and its external
stakeholders. Kalakota and Whinston (1997) refer to a range of different perspectives for e-
commerce:
1. A communications perspective – the delivery of information, products or services or
payment by electronic means.
2. A business process perspective – the application of technology towards the automation of
business transactions and work-flows.
3. A service perspective – enabling cost cutting at the same time as increasing the speed and
quality of service delivery.
4. An online perspective – the buying and selling of products and information online.
 E-Commerce and E-Business
• Electronic business (e-business)
All electronically mediated information exchanges, both within an organization and with external
stakeholders supporting the range of business processes.
e-Business does not include commercial transactions that generate revenue from outside businesses
or consumers, as e-commerce, does. For example, a company's online inventory control mechanisms
are a component of e-business.
It includes processes such as online marketing, customer relationship management (CRM), supply
chain management, electronic data interchange (EDI), online payment systems, and other digital
business operations.
The process of E-commerce
 Categories of Electronic Commerce

• Common five general e-commerce categories:

• Business-to-consumer (b2c)
• Business-to-business (b2b)
• Consumer-to-consumer (c2c)
• Business-to-government (b2g)
• Government-to-consumer(g2c)
 B2C business models
• Businesses sell products or services to individual consumers.
• Direct Selling: This B2C model refers to all the online ventures selling products directly to the
consumers.
• Online Intermediaries: These are the e-Commerce giants who act as a middleman for connecting
buyers and sellers. They provide both parties with a mutual platform for commercial purposes and
charge some amount from their profit in exchange.
• Advertising Based B2C: Websites with huge traffic like Youtube, Reddit, etc., sell some of their site
space for ad placement.
• Netflix, Starbucks, H&M, and Spotify are some popular brands that qualify for the B2C business
examples.
• Examples: Amazon, E-bay, Etsy, and Facebook marketplace. Fashion Nova, and Shein. Walmart and
Target are also in the retail e-commerce business
 B2B business models
• business to business is one organization selling to another.
• business selling to or supplying another business. Business to business
examples can include the transactions between a wholesaler and a retailer.
• B2B transactions often occur between manufacturers who purchase materials
from another manufacturer to produce their own goods. As much as being
used as a description of business styles on the internet or web, this is true of
the economy and world out there in general.
• Best Examples of B2B e-Commerce Stores
• Amazon Business : offers business pricing, bulk purchasing options, tax-exempt purchasing for eligible businesses,
and integration with procurement systems.
• Grainger: It offers a wide range of maintenance, repair, and operating (MRO) products to businesses and institutions.
 C2C business models
• Participants in an online marketplace can buy and sell goods to each other.
one party is selling, and acting as a business. C2C e-Commerce
marketplaces:
• eBay, allows individuals to buy and sell a wide range of new and used products through
auctions or fixed-price listings.
• Esty , focused on handmade, vintage, and unique products. It provides a marketplace
for artisans, crafters, and vintage sellers to showcase and sell their products to a global
audience

• In C2C e-Commerce, consumers sell goods or services directly to other

consumers. This is most often made possible by third-party websites or
marketplaces that facilitate transactions on behalf of buyers and sellers.
 Types of C2C e-commerce models

• Online marketplaces: This model involves consumers selling items through

platforms like eBay or Etsy.
• Classified websites: This model involves consumers posting ads for items
they want to sell on websites like Craigslist or Kijiji
• Peer-to-peer (P2P) platforms: This model involves consumers selling items
directly to other consumers through platforms like Airbnb or Uber.
 B2G business models
• Business to government (B2G) is when a company markets its products and services
directly to a government agency.
• Government Consulting: provide consulting services to government agencies, assisting
them with policy development, regulatory compliance, program management, or other
specialized areas.
• Government Software and Technology Solutions: develop and offer software
applications, technology platforms, or IT services tailored for government use.
• Public Sector Procurement: providing products or services that are essential for
government operations. This could include supplying office equipment, vehicles,
construction materials, healthcare supplies, or other goods needed by government
agencies.
 G2C business models
• The process of government agencies providing products or services directly to consumers through the
internet. In a G2C transaction, the government agency is the seller and the consumer is the buyer.
• For example, a government agency might provide healthcare or education services to the general
public, or sell licenses or permits to individuals. also allows government agencies to easily track and
manage their transactions with consumers.
• There are several types of G2C e-commerce models, including:
• Online services: This model involves government agencies providing services such as healthcare or
education to consumers through the internet.
• E-government portals: This model involves government agencies providing a range of services, such
as licenses and permits, to consumers through a single online portal.
• E-commerce platforms: This model involves government agencies selling products or services to
consumers through platforms like Amazon or eBay.
 Difference between E-Commerce and M-
Commerce

• M-commerce is a sub-part of e-commerce.

• M-commerce, or mobile commerce, is the buying and selling of goods
using mobile, handheld devices such as smartphones or tablets.
• M-commerce can take place via a dedicated app that customers may
download on their mobile phones or by simply accessing the mobile version
of the website. The Amazon shopping app and the Google Play store are
examples of m-commerce apps.
 Difference between E-Commerce and M-
Commerce
• Portability: Generally, e-commerce activities are done via desktops or laptops. These devices
are not highly portable compared to m-commerce devices such as mobiles and tablets.
• Location tracking: Location tracking and providing localized offers can become tedious when
using e-commerce, whereas location tracking is easy with mobile phones, as they have built-
in GPS.
• Push notifications: The technology is mainly associated with mobile devices and can make
m-commerce a better and more secure option than e-commerce.
• Security: Mobile devices are used in e-commerce for 2-factor authentication. M-commerce
has the advantage of additional protection via biometrics like fingerprint and face
recognition.
• Ease of use: Mobile apps are optimized for the best user experience. It takes fewer taps and
less navigation compared to e-commerce websites.
 The History of
Electronic Commerce
• 1970s - Pre-Internet Era:
• The concept of electronic commerce can be traced back to the development of electronic data interchange (EDI) in the 1970s.
EDI enabled businesses to exchange business documents, such as purchase orders and invoices, electronically.

• 1980s - Early Experiments:

• In the 1980s, businesses began experimenting with online transactions. Notably, platforms like Compuserve and Minitel in
France provided electronic ordering systems.

• 1990 - Emergence of the World Wide Web:

• The World Wide Web became publicly accessible in 1991, marking a crucial development for e-commerce. Tim Berners-Lee's
invention laid the foundation for the creation of websites and online platforms.

• 1994 - First Online Purchase:

• The first known online retail transaction took place in 1994 when a man named Dan Kohn sold a Sting CD to a friend through
the NetMarket platform.

• 1995 - Rise of Amazon and eBay:

• Amazon.com was founded by Jeff Bezos in 1994 but officially launched in 1995 as an online bookstore. eBay, initially known
as AuctionWeb, also started in 1995, allowing individuals to auction and sell items online.
 The History of
Electronic Commerce
• 1995-2000 - Dot-com Boom:
• The late 1990s saw the dot-com boom, characterized by a surge in internet-related investments. Many e-
commerce startups emerged, with a focus on various industries, leading to rapid growth.

• 1998 - PayPal Launch:

• PayPal was founded in 1998, providing a secure online payment system that played a crucial role in facilitating e-
commerce transactions.

• Early 2000s - Dot-com Bust:

• The dot-com bubble burst in the early 2000s, leading to the collapse of many e-commerce companies. However,
it also marked a period of consolidation and learning for the industry.

• 2000s - E-commerce Maturity:

• During the 2000s, e-commerce matured as businesses adapted to the lessons learned from the dot-com era.
Major retailers established online presences, and consumers became more comfortable with online shopping.
 The History of
Electronic Commerce
• 2005 - Introduction of YouTube and Web 2.0:
• The advent of Web 2.0 technologies and the rise of social media platforms like YouTube contributed to the growth of e-
commerce. Businesses started utilizing these platforms for marketing and customer engagement.

• 2010s - Mobile Commerce (M-Commerce) and Omnichannel:

• The 2010s saw the proliferation of smartphones, leading to the rise of mobile commerce. E-commerce platforms began
optimizing their websites for mobile devices. Additionally, the concept of omnichannel retailing emerged, integrating online
and offline shopping experiences.

• 2020s - Acceleration Amidst Global Events:

• The COVID-19 pandemic in 2020 accelerated the shift towards e-commerce, as lockdowns and social distancing measures
prompted a surge in online shopping. This period highlighted the resilience and adaptability of e-commerce businesses.

• Blockchain and Cryptocurrency Integration:

• In recent years, there has been growing interest in integrating blockchain technology and cryptocurrencies into e-commerce
platforms to enhance security, transparency, and payment options
 Elements of E-Commerce

• Electronic funds transfers (EFTs)

• Also called wire transfers

• System of transferring money from one bank account directly to another without any
paper money changing hands

• Electronic transmissions of account exchange information over private communications

networks

• Used since the 60s

• Electronic data interchange (EDI)

• Transmitting computer-readable data in a standard format to another business

• Developed by the Data Interchange Standards Association and uses ANSI X12
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 Value Added Network (VAN)

• A value added network is an independent firm that offers

connection and EDI transaction forwarding services to buyers and
sellers engaged in EDI
• VANs are responsible for ensuring the security of data transmitted
• VANs charged a fixed monthly fee plus a per-transaction charge to
subscribers
• Used a lot prior to the internet
• Today’s VANs focus more on security issues

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 Benefits of E-Commerce

• Benefits to organizations
• Benefits to consumers

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 Benefits to organizations

• Global Reach.
• Increased Sales and Revenue.
• Cost Savings.
• Enhanced Customer Insights: E-commerce platforms generate valuable data and
analytics that provide organizations with insights into customer behavior,
preferences, and buying patterns. This information can be leveraged to make data-
driven decisions, personalize marketing campaigns, and improve products or services.
• Competitive Advantage.
• Scalability and Flexibility.
 Benefits to consumers
• Wider Selection: Consumers have access to a vast range of products and services from various sellers and
brands globally.
• Competitive Pricing
• User Reviews and Ratings
• Time Efficiency
• Personalization: E-commerce platforms can offer personalized recommendations based on consumer
preferences and purchase history.
• Accessibility
• Easy Product Research
• 24/7 Availability:
• Easy Returns and Refunds
• Environmental Impact
• Subscription Services
• Discreet Shopping