E Commerce TIK | Agroecology

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E-COMMERCE

Tim TIK FPUB

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Lecture Outcome

After completing this lecture and mastering the lecture materials, students are expected to be able :

1. To explain the definition, history and framework of eCommerce

2. To explain the advantages, disadvantages and limitations of eCommerce

3. To explain various eCommerce types (B2B, B2C, etc.)

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Introduction : eCommerce and Information

Technology



Information technology has changed the manner of

acts of people, organizations, governments and so

economic, social affairs and even the mentality of

people has changed.



Education, health, industry, manufacturing, trade,

banking and even of all entertainments services have

effected and changes with technology.



Information technology creates new jobs, new

industries, change lifestyle and has brought new

creativity in all of the dimensions of our life.



Electronic commerce is one of the important branches

of Information Technology that has been emerged as

the result of development of Information Technology.

Introduction



By the help of the flexibility offered by computer

networks and the availability of the Internet ,

E-commerce develops on traditional E-commerce .



E-commerce creates new opportunities for performing

profitable activities online.

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Introduction



The Internet can increase the speed and accuracy of

communications between suppliers , distributors , and customers.

Furthermore, the Internet's low cost allows companies of any size

to be able to take advantage of value-chain integration



E-commerce may improve value chain by identifying new

opportunities for cost reduction . For instance, using e-mail to

notify customers instead of using regular mail helps for reducing

cost



Selling to distant customers using the company web site may

allow revenue improvement or generation . These sales may not

have been materialized otherwise or selling digital products such

as songs or computer software or distributing software through

the Web. Offering online customer service or new sales channel

identification helps for product/service improvement

Defining eCommerce

 Perdagangan elektronik (electronic commerce atau e-commerce) adalah penyebaran, pembelian, penjualan, pemasaran barang dan jasa melalui sistem elektronik seperti internet atau televisi, www, atau jaringan komputer lainnya (Wikipedia)

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eCommerce vs eBusiness

History

 In the 1970s, the term electronic commerce, referred to electronic data exchange for sending business documents such as purchase orders and voices electronically.

 Later, with the development of this industry the term of electronic commerce is used to business of goods and services via the web.

 When the first World Wide Web was

introduced in 1994 as a comprehensive, many well-known researchers have been predicated this type of business “the web-based

business” will became soon an important in the world economy, but it took four years that http based protocols should be widely available to users.

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Advantages & Disadvantages



The invention of new telecommunication

networks and modern online devices has

resulted in a new business.



In fact, electronic commerce has become

one of the most popular activities on the

web.



Electronic commerce created many benefits

for companies and users however, some

disadvantages and serious problems stem

from this issue.

Advantages

 Buying 24/7  We can also sell any time, night or day, 365 days a year. Even while we are resting, our users can visit our web site, search our goods, services, and determine their orders

 Decrease Transaction Costs _ If we buy from online store, we spend low operational cost, we have better quality of service, and we can cut the many unnecessary costs. For example, if our goods or services downloadable, we will have transport costs completely cancel.

 Conduct a Business Easily  In electronic commerce, we do not need to physical company setups or there are not any crowds to deal with. We can buy from our house comfortable; users can easily choose goods from various procedures without moving around physically.

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Disadvantages

 Security  Security pursues to be a main problem in

electronic commerce. Everyone good or bad can easily open a web site, and there are many bad sites, which their aim is user’s money.

 Guarantee  There is no guarantee for product quality. Our orders might be damage in the post or things may look different online to what you actually receive for example, slightly different colors and feel of clothes or the freshness of vegetables and fruits.

 Social Relationships  Electronic commerce allows to users that buying and selling goods and services without geographic limitations but in this method we have not any contacts and relationships with other persons and loss our social contacts.

Limitations

There are some barriers for electronic commerce setup, which include:

 Lack of knowledge and necessary information for use of electronic commerce and Internet network

 Protection of consumer rights in electronic commerce

 Lack of legal infrastructures in electronic commerce such documents that are not acceptable and electronic signature

 Low security of electronic funds transfer in some countries

 Lower speed and limitations on the use of Internet

 Lack of information intermediary institutions and manufacturing companies of the benefits of Internet business

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Types of eCommerce

 There are many various classifies of electronic commerce and many different methods to characterize these clusters. Academics determined a number of frameworks for classifying electronic commerce but each one want to illustrate it form a unique perspective.

 The main different classifies of electronic commerce are Business-to-Business (B2B), Business-toConsumer (B2C), Consumer-to-Consumer (C2C), Consumerto-business (C2B) and Mobile Commerce (M-Commerce).

B2B

 Business-to-Business is a type of commerce transaction that exists between businesses or a transaction that occurs between a company and other company to transfer of services and products. A possible explanation for this might be that Business-to-Business includes online wholesaling in which businesses sell materials, products and services to other businesses on the websites.

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B2C



Business-to-Consumer refers

to transactions between a

business and its end

consumer and so it create

electronic storefronts that

offer information, goods, and

services between business

and consumers in a retailing

transaction or it is an Internet

and electronic commerce

model that indicates a

financial transaction or online

sale between a business and

consumer.

C2B

 Consumer-to-Business is the transfer of services, goods or information from persons to business or it is a business model where end users create products and services that are used by business and institutions.

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C2C



Consumer-to-Consumer is an electronic Internet

facilitated medium, which involves transactions

among users and it is a business model which two

consumers deal business with each other directly

M-Commerce

 Istilah Mobile Commerce pertama kali dikemukakan tahun 1997 yang mengacu pada kegiatan “pembelian dan penjualan produk, informasi maupun layanan/jasa” melalui perangkat nirkabel seperti handphone, laptop dan PDA (personal digital assistants).

 Perangkat nirkabel ini terhubung dengan jaringan komputer yang memiliki kemampuan untuk menjalankan/melakukan pembelian barang secara online.

 Mobile commerce allows to users access to Internet and shopping in it without needing to find a place to plug in.

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Comparing Traditional Commerce and E-Commerce

 In e-commerce there may be no physical store, and in most cases the buyer and seller do not see each other. The Web and telecommunications technologies play a major role, in e-commerce. Although the goals and objectives of both ecommerce and traditional commerce are the same— selling products and services to generate profits—they do it quite differently.

 Traditional commerce presents product information by using magazines, flyers. On the other hand, ecommerce presents by using web sites and online catalogs.

 Traditional commerce communicates by regular mail, phone yet e-commerce by e-mail.

 Traditional commerce checks product availability by phone, fax and letter. However, e-commerce checks by e-mail, web sites, and internal networks.

 Traditional commerce generates orders and invoices by printed forms but ecommerce by e-mail, and web sites.

 Traditional commerce gets product acknowledgments by phone and fax. On the other hand, e-commerce gets by email, web sites, and EDI.

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Example of Digital Goods and Services

 documents, including articles and books (e-Book);

 data, including statistics;

 reference information, including dictionaries and encyclopedias;

 projected sound, such as speeches and musical performances;

 projected video and with-sound, including television, video-conferencing and video-clips; and

 interactive voice, such as telephone conversations and tele-conferencing;

 interactive video and with-sound, such as video-conferencing;

 images, including structured graphics such as diagrams and musicalscores, and photographs

Example of Digital Goods and Services

 news;

 weather forecasts;

 entertainment, infotainment, edutainment and education via multi-media;

 bookings and tickets for live events;

 software, quite generally;

 commerce in insurance;

 commerce in money, including foreign currencies;

 commerce in securities, and financial derivatives such as stock-based, interest-rate-based and index-based options; and

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E-COMMERCE

DI INDONESIA

Popular Online Product Categories

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Top Buyers and Products

 Females tend to have a higher purchase rate, with the highest spending on clothing, mobile devices, travel, laptops and accessories.

Online vs Retail Sales in Indonesia

 Meski nilai penjualan online masih jauh lebih kecil

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Key eCommerce Sites

 In 2013, Amazon was the most popular B2C site in Indonesia. Lazada Indonesia, Rocket Internet’s answer to Amazon, made the jump to the top spot in 2014. Zalora, Rocket

Internet’s fashion venture, is another big player in the local market. Japan also entered the market with Rakuten Belanja Online.

 Kaskus is the leader of online forums in Indonesia May 2014, it reported to have over 6.8 million registered users that create 4,000 new threads every day. Kaskus’s biggest competitor is OLX, formerly known as

TokoBagus. It is the largest eCommerce platform and Indonesia’s third largest local website.

 Of special mention is the consumer-to-consumer (C2C) marketplace Tokopedia.

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eCommerce Potential in Indonesia



There is a high growth potential in the Indonesian eCommerce

market, as indicated by the increase in internet and mobile

penetration, a growing consumer base and greater spending,

rapid developments in both direct selling websites and

marketplaces, as well as continuous activity in the social space.



Indonesia’s online ecosystem also requires increasing

investments in infrastructure and logistics to keep up with these

growing demands and also faces challenges in consumer

behavior, given the local market’s hesitation to fully use online

payments.



For any business looking to venture into Indonesia’s

eCommerce landscape, it is vital that they consider localization

and offering multiple payment and delivery options so as to

reap the benefits of this rapidly growing Asian economic

powerhouse.

Website and eCommerce



Websites are effective in acts of business corporations.

Websites are gateways to business brands, products and

services of manufacturers.



A company that does not care about its websites

ultimately will be bankruptcy in business. The websites

that are not adapted are like an old and faded showcase

in a traditional business.

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Website and eCommerce



Internet especially websites can be suitable

means to achieve this goal.



For instance, web can use up to extend

markets by facilitating the presentation and

repartition of existing products in to new

business centers.



The web can also be a workmanship that

facilitates products development, as

companies who their existing customers well

create exciting, new or alternative offering

for them.

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How to build an eCommerce store?

There are two main ways to build an ecommerce store:



Hosted ecommerce software (more user-friendly)



Self-hosted open source

ecommerce software (more advanced)



The good news is, both can enable you to build

an online store.



However, depending on the degree of customization you

need, the volume of products you are selling, and the

magnitude of learning curve you are willing to undertake

(which takes time and energy), one will be more suitable

for you over the other.

Hosted ecommerce software

“Hosted ecommerce shopping carts enable

you to build an ecommerce store without you

having to be technical at all!”

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Why people want to use a hosted ecommerce

builder?

1. You don’t want to worry about hosting, security or any technical aspects of running your online store.

 Basically, these online store builders give you ecommerce tools / features, and take care of all the technical system administrative aspects of operating a website so you don’t have to play the role of being your own IT manager. This enables you to focus on your business instead.

2. You want a turn-key solution – where all the shopping cart tools come pre-installed and are ready for you to use immediately.  All the tools you will need to run an online store like

product management and payment processors are already built-in to the hosted ecommerce builder. There is no integration work, and minimal configuration needs to be done.

 They all work out-of-the-box, right away. If you get stuck, they have dedicated support teams to help.

Why people want to use a hosted ecommerce

builder?

3. You want to be able to build your website using simple drag and drop technology that requires no coding skills.

 The idea is that hosted shopping carts “hide” all the codes, and create simple and non-technical user interface for you to create your own website (using drag and drop technology for you to insert your content such as images, galleries, etc) upload your products, connect your website to a payment processor, so you can start selling very quickly.

 The main benefit of these ecommerce software is that they are quite easy to use even if you are not technically savvy.

 The drawback is that there isn’t as much flexibility for you if you want to modify the functions provided by these

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Some of the key benefits of using hosted

ecommerce software



You can build a functional online store very quickly

(usually in a couple of days)



You don’t need to know how to code (though it can

help, but not a necessity)



You don’t need to hire expensive developers



They have dedicated teams of support staff to

answer your questions

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1) Shopify (325,000+ Active Online Stores)

 Shopifyis probably the best ecommerce software in the market today.

 It’s suitable for small businesses who are just starting out, all the way up to larger stores that are selling millions of dollars in products. What this means is that they have the scalability to grow with your store, as your business expands.

 Here are some key highlights about Shopify:

 Over 100 beautiful, professional, mobile ready themes so your store looks great

 Over 1,500 apps for you to add to your store to extend the functionality of your business

 24/7 any time support (very important especially if you have questions at 3am)

 Qualified / Pre-Approved Experts available for hiring if you want to customize your design and functions

2) BigCommerce (95,000+ Active Online Stores)



BigCommerce

is another reputable ecommerce

website builder that allows you to build your store

without getting tangled up in technology.



BigCommerce is suitable for smaller businesses, all

the way up to very large stores.



Comprehensive set of “out of the box”

e-commerce tools to help you build your store



Leverages on different social channels to help

you grow your sales



You can add more advanced tools through their

App store (just like Shopify)

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3) Wix eCommerce (305,000+ Active Online

Stores)

 Wix is a “pure” drag and drop website builder that literally enables you to drag and drop any content anywhere on your website.

 What this means is that you get more creative freedom in terms of where you want to insert your content, as Wix is a “pure” drag and drop platform. So the other ecommerce software doesn’t give you as much precision as to where exactly to insert your images, slideshows, text, etc.

 Compared to Shopify and BigCommerce, Wix is a less advanced ecommerce software.

 It is best suited for users who want simpler store

configurations, who are not planning on selling a lot of products (such as 20 or more), and have less sophisticated requirements (such as the need to integrate accounting, marketing, fulfillment software, etc).

 If you don’t plan on building very advanced stores, Wix can be a very interesting option for you to test drive.

4) Squarespace Commerce

 Squarespace is known to help users such as yourself create very beautiful, image-rich websites. Their templates are very polished and stunning, but what a lot of people fail to appreciate is that their ecommerce tools are under-rated.

 In addition to being able to create a very beautiful storefront, Squarespace also allows you to have full control over product variants, manage your inventory, upload unlimited products, sell physical or digital products, coupon generation, configure shipping options and costs, configure sales taxes, manage your customer email list, and other helpful tools for you to build a comprehensive online store.

 We would group Squarespace in the same category as Wix and Weebly – suitable for more straight forward, less sophisticated ecommerce needs.

 Although Squarespace’s available ecommerce tools are not as comprehensive as Shopify or BigCommerce, if your store is simple enough and doesn’t need all sorts of bells and whistles,