E - commerce m com

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E Commerce

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Syllabus - Modules

I. Introduction to e commerce – evolution and models

II. World wide web and e enterprise

III. E marketing and electronic payment system

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Introduction.

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EVOLUTION/HISTORY

• _{Conception stage (1960 - 1980)} • _{Introductory stage (1990s)}

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Conception stage (1960 - 1980)

• Electronic Data Interchange - Electronic Data format for sending info about cargo between Du Pont and Chemical Leahman.

• Birth of Internet - 1969 – ARPANET to create network that would allow researchers to communicate.

• Invention of Online Shopping – 1979 – Aldrich

connected television set to transaction processing computer with a telephone line and called it

teleshopping.

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Introductory stage (1990s)

• _{Creation of W.W.W – HTML introduced}

that supports links to other documents

• _{Net Browser – Netscape launched}

Navigator frst web browser

• _{First ever online order for Pizza Hut -}

1994

• _{Birth of C2C - eBay}

• _{First ever sale by Amazon - 1995}

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Growth stage (2000 onwards)

• _{eBay acquires Paypal (2002)}

• _{First yearly proft by Amazon (2003)} • _{Online purchases through mobile}

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E commerce in India

• _{Phase I (19996 - 2005)}

– _{1995 dial up internet}

– _{Online Matrimonial -1996} – _{Online Recruitment - 1997}

• _{Phase II (2006 till date)}

– _{Low cost carrier in Indian Aviation Sector fred up}

Online Reservation

– _{Online retail 2007}

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Main Activities of E

Commerce

1. Information sharing 2. Registration

3. Order Placement and Processing 4. Processing of payment

5. Shipment 6. Delivery

7. Service and support 8. Feedback.

9. Customers reviews

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Functions of E Commerce.

1. Registrations

2. Information search 3. EDI

4. Negotiations 5. Orders

6. Logistics 7. Payment

8. After sales activities

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Scope of e commerce

• _{Major applications} – _{Electronic markets} – _EDI

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Benefts of E Commerce

• _{Advantages to e marketers} – _{Global markets}

– _{Audience sizing}

– _{Lower investments} – _{Lower operating cost}

– _{Improvement in productivity} – _{Customer relationship}

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• _{Advantages to customers} – _{Convenience in shopping} – _{Anytime shopping}

– _{Lower prices}

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Challenges of E Commerce

• _{Declining in Proft Margins}

• _{Challenges of E Commerce laws in India} • _{Low entry barriers}

• _{Problem for rural customers} • _{Shortage of manpower}

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• _{Problem of touch and feel} • _{Problem of delivery}

• _{Problem of confdence}

• _{Unsuitability to certain products} • _{Problem of negotiation}

• _{Problem of language}

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E Commerce Business Strategies

• _{Niche markets}

• _{Sell internet only merchandise} • _Personalize

• _{Third party logistics}

• _{Invest in mobile platform}

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E Commerce Business Strategies

cont’d….

• _{Implement a loyalty program} • _{Make use of native language} • _{Third party logistics}

• _{Consistency across}

• _{Implement a loyalty programmer} • _{Make use of Native Language}

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Business models of E Commerce

• _{B2C – Flipkart, Amazon, etc} • _B2B

• _C2B • _C2C • _B2G • _G2C

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Characteristics of B2B E Commerce

1. Higher volumes 2. Longer lead times 3. Credit sales

4. Price negotiations

5. Specialized promotion 6. Customized orders

7. Value addition

8. Activities involved in purchasing 9. Higher risk

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Need and importance of

B2B E Commerce

1. Reduces distribution costs 2. Reduces inventory levels 3. Increases in productivity 4. Focused brand promotion 5. Customer loyalty

6. Wider geographical spread 7. Scalability

8. Reciprocal buying

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Characteristics of B2C E Commerce

1. Large number of customer 2. Lower entry barriers

3. Lower volume per transaction 4. Possibilities of return of goods 5. Global reach

6. Anytime shopping 7. B2C process

8. Lower operating costs 9. Lower investment

10.Stif competition

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Process to B2C E Commerce

1. Pre-purchase 2. Purchase

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Characteristics of B2G E Commerce

• _{Mainly involves bidding} • _Transparency

• _{Virtual work place} • _{Improved efciency}

• _{High value per transaction} • _{Rules and regulation}

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Models of B2B E Commerce

• Net Market Place Model

– _{Supplier oriented marketplace (few suppliers & many}

buyers)

– _{Buyer oriented marketplace (few buyers face many}

suppliers)

– _{Intermediary oriented marketplace (many buyers &}

many suppliers)

• _{Private Industrial Network Model (PIN)}

– _{Single frm industrial network operated by single}

large purchasing frm

– _{Industry wide industrial network operated by a group}

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Net Market Place Model

Supplier oriented marketplace (few suppliers & many buyers)

• _{Known as sell side e commerce system} • _{Dell computers}

• _{CISCO network solutions}

• _{Customisation by confguration which buyer}

intends to purchase.

• _{Product catalogue}

• _{Procedure for order placement} • _{Customer service}

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Private Industrial Network Model

(PIN)

• _{Single frm industrial network}

• _{Industry wide industrial network} • _{Wal mart - retail industry}

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Private Industrial Network Model

(PIN)

• _{Higher efciency in buying and}

selling

• _{Reduction in business risks due to}

closer linkages

• _{Facilitates resource and capacity}

planning throughout the industry.

• _{Better communication between the}

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E commerce sales life cycle

(ESLC)

• _{Seed (Development) stage} • _{Start-up (Introductory) stage} • _{Growth stage}

• _{Established (Maturity) stage} • _{Expansion Stage}

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Seed (Development) stage

• _{Generates idea to set up e commerce}

biz

• _{Challenge – market acceptance}

• _{Focus – business opportunities to link}

with skills, experience and passion.

• _{Money sources – get funds to start}

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Start-up (Introductory) stage

• _{Challenge – face cash fow crisis} • _{Focus – estb customer base and}

market presence

• _{Money sources – should make best}

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Growth Stage

• _{Challenge – efective management}

along with new business plan

• _{Focus – maintain and enhance}

customer relations with promotional activities

• _{Money sources – may obtain funds}

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Established (Maturity) stage

• _{Challenge – may face stif}

competition, changing customer tastes, economic conditions

• _{Focus – improving efciencies}

• _{Money sources – needs to maintain}

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Expansion Stage

• _{Challenge – moving into new}

markets, diversifcation, expansion

• _{Focus – new customer segments,}

without losing focus on existing customer segments

• _{Money sources – may enter into new}

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Decline stage

• _{Challenge – decline in sales, profts,}

customer base

• _{Focus – new opportunities, new}

business ventures

• _{Money sources – make use of}

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Exit stage

• _{Challenge – fnal close down of}

business

• _{Focus – proper valuations, value}

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WORLD WIDE WEB AND E

ENTERPRISE

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Introductory stage (1990s)

• _{Creation of W.W.W – HTML introduced}

that supports links to other documents

• _{Net Browser – Netscape launched}

Navigator frst web browser

• _{First ever online order for Pizza Hut -}

1994

• _{Birth of C2C - eBay}

• _{First ever sale by Amazon - 1995}

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Reasons for building own

website

• _Visibility

• _{Easy to develop}

• _{Promotion of business} • _{Online business}

• _{Refects creativity} • _{Learning experience}

• _{Competitive advantage} • _{Corporate image}

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Benefts of website

• _{Customer satisfaction} • _{Competitive advantage} • _{Corporate image}

• _{Organizational objectives} • _{Benefts of online sales} • _{Customer reviews}

• _{Promotional values} • _{Customer loyalty} • _Tie-ups

• _Links

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Registering a domain name

• _{Name of the entity} • _{Type of the entity}

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Procedure for registration of a

domain name

• _{Domain name}

• _{Indentify registrar}

• _{Search for domain name on registrar’s}

website

• _{Submission of information to registrar} • _{Verifcation by the registrar}

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Role of website in B2C e commerce

• _{Customer satisfaction} • _{Competitive advantage} • _{Corporate image}

• _{Organizational objectives} • _{Benefts of online sales} • _{Customer reviews}

• _{Promotional values} • _{Customer loyalty} • _Tie-ups

• _Links

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Push and pull approaches

• _{Push promotion approach}

– _{Producer to wholesaler and to retailer} • _{Pull promotion approach}

– _{Strategy directed towards consumers to}

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Principles of website design

• _Typography • _Usability

• _Simplicity

• _{Visual hierarchy} • _Consistency

• _{Accessibility}

• _{Conventionality} • _Credibility

• _Navigation

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Concept of EDI

• _{Computer to computer business}

documents exchange

• _{Purchase orders, Invoices, Shipping}

documents etc.

• _{Business process & EDI electronically}

buyers and suppliers are connected.

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Pros and Cons of EDI

Pros

• _{Faster transmission of info} • _{Automated data entry}

• _{Receipt verifcation} • _{Data validation}

• _{Availability of free software} • _{Lower costs}

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Cons of EDI

• _Expensive

• _{System setup is time consuming} • _{EDI standard changes}

• _{Needs electronic protection} • _{Staf training cost}

• _{Needs for back ups}

• _{Limits trading partners} • _Complex

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Related new technologies use in

e-commerce

• _{Virtual ftting technology} • _{Self check out tech}

• _{Drive in grocery store} • _{Drone tech for delivery} • _{Droid tech}

• _{Augmented reality tech} • _{Smart refrigerators}

• _{Touch id tech}