Transcript E-Commerce

E-Commerce
Jennifer Bui
Aaron Coyle
Arthur Pham
Luke Lamarra
Nick Milosavljevic
Introduction
• E-Commerce= “…buying and selling of products
or services over electronic systems as the Internet
and other computer networks.” (Pornwasin, 2007)
– “…the ability of purchasing various goods through the
Internet using secure protocols and electronic payment
services.”(Wikipedia, 2008)
– E-mail, spreadsheets, databases, systems used in
accounting or finance firms, order and shipment
information, on-line shopping, online banking.
• Regulated by Federal Trade Commission
(FTC)
– Protect consumer privacy
– Private information is secured
– Meet advertising standards
– Scans e-commerce at both consumer level and
institutional level
• Consumer level= World-wide web; buying textbooks,
stocks, or payments made online.
• Institutional level= use internet to do business both
internationally and domestically.
Secure Socket Layer
• Introduced in 1994
• “https”
• SSL-Evading Trojans:
– credential-stealing
– bogus SSL
– transaction-based
• SSL Certificates= “used
to encrypt the data and to
identify the Web
Site…prove the site
belongs to who it says it
belongs to and contains
information about the
certificate
holder…”(Webopedia.co
m, 2005)
– Protects the web site
– Prevents fraudulent actions
Different E-Commerce Methods
• Different businesses
use different ecommerce methods.
• PayPal
• CubeCart
• Actinic
• PayPal
– Ebay
– receive payments over the
internet from clients by
phone, mail, or by fax
• CubeCart
– MySQL and PHP
– manage multiple online
stores single database
• Actinic
– Used by medium or small
sized companies.
– Powered by Windows
E-Commerce Marketing Aspect
•Ecommerce marketing is all about enticing web
surfers to your site and, once there, to becoming a
customer.
•Ecommerce marketing is broken down into three
primary division that are considered marketing
priorities.
1. Enticing Visitors
2. Converting Visitors
3. Site Effectiveness
Enticing visitors (non-customers)
to come to the site
• Search engine registration
(natural search results)
• Pay-per-click
• Public relations – news
releases, articles and stories
• Online advertising (banners,
links / cross-links,
directories, newsletter
placement, etc.)
Converting visitors (noncustomers) into customers
• In-site promotions
• Sales / Special
Offers
• In-store Coupons
• Associated Products
• Customer
Recommendations
• Opt-in Email
Promotions
Site Effectiveness
• Enticing appropriate
visitor behavior
• Establishing
emotional context
• Building
relationships
• Increasing percustomer purchases
• After sale marketing
• After sale
relationship building
Advantages of E-commerce
• Brand Recognition
• Marketing
• Access to Global
Markets
• Personalized
Customer Service
• Increased Customer
Interaction
• Greater Availability
• Increased Efficiency
• Greater Access to
Suppliers
Small vs. Large Companies
• Smaller the Company
– Greater the “realized
benefits”
• Leveling the Playing Fields
Why?
• Larger Companies Have
– Less flexibility
– Higher Conversion costs
Online Retail
• Started with
Commercialization
of Internet
– 1991
– Major developments
from 1994 onward
• Just a Few
Examples
Sales Volume Growth
• 2001 3rd Quarter Sales
– $7.742 Billion
• 2008 3rd Quarter sales
– $34.4 Billion
• 2001 3rd Quarter % of Total Sales
– .6% (less than 1%)
• 2008 3rd Quarter % of Total Sales
– 3.4%
% of Total Sales Growth
Using E-commerce Effectively
• An E-business should use established
business knowledge for all it is worth, to
balance out the uncertainty of the new
playing field.
• Case Study:
VS
JRSMX
• Before E-Commerce
• After E-Commerce
• large retail site, with
unused floor-space.
• Sales have increased
exponentially for both
businesses
Mitch’s Surf Shop
• Before E-Commerce
• After E-Commerce
• Sales down due to
competitors advantage.
• With website International sales now
easy and profitable
E-Commerce and Bridal Registry
• New market trend: EBridal Registry
• Della & James receives
45 Million in funding.
• Online wish list with
general hints, sizing
information or personal
interests that can be
accessed by friends
and family members.
Future Structural Changes in
E-Commerce
• Explosive growth in
industry will
consolidate into large
competitive firms
• A change from
revenue-share
business model to
flat-fee pricing model
• A move from purely
internet based solutions
toward multi-channel
integrations
• As the sophistication of
the market develops,
providers will begin to
offer specific functions
to single industries
Future Social Changes in
E-Commerce
• Providers will begin
focusing more on
increasing services and
incorporate modern
marketing techniques to
attract customers
• Development of
websites from utility
based functionality to
ones that are more
visually appealing and
simplified
• Emergence of mobile
commerce conducted
through cell phones and
other mobile devices
• Integration with social
networks and media to
provide a more
interactive experience
Future Social Changes in
E-Commerce
• A larger amount of
personalization
between customers and
clients as the market
becomes more
developed
• A rise in multi-language
websites as global
merchants begin to
expand into local
markets
Problems in the Future of
E-Commerce
• Global Literacy
• Delivery Time
• End of Free
Shipping
• Customer Service
and Relations
• Primitive Search
Engines
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