Click here to advance to the next slide.

Chapter 9

Technology andBusiness

Section 9.2

E-Commerce

Read to Learn

Explain why doing business on the Internet has become a major factor in many industries.

The Main Idea

Businesses offer all types of goods and services online. Consumers can research almost any product or service from their home. They can buy just about anything online.

Key Concept

The Importance of Virtual Business

Key Term

start-up

e-tail

a newly formed business that is usually small

electronic retail

Key Term

multi-channelretailer

bricks-and-mortar

a business that sells its goods or services in stores, by mail, and online

actual buildings

Key Term

clicks-andmortar

e-ticket

businesses that use the Internet in addition to physical locations to sell goods and services

electronic ticket

The Importance of Virtual Business

The ease of doing business via the Internet has created a boom in virtual businesses.

The Internet makes it possible to communicate online with customers and clients around the world.

The Importance of Virtual Business

Some Internet businesses are start-ups.

start-upa newly formed business that is usually small

Many entrepreneurs have started virtual businesses from their homes.

Figure 9.1

What Consumers Buy Online: Top Purchases

The Basics of E-Commerce

An e-tail store sells products over the Internet through e-commerce.

e-tailelectronic retail

The Basics of E-Commerce

A multi-channel retailer uses various methods to sell products.

multi-channel retailera business that sells goods or services in stores, by mail, and online

The Basics of E-Commerce

Businesses often call their stores and warehouses bricks-and-mortar.

bricks-and-mortaractual buildings

The Basics of E-Commerce

Bookstore chain Barnes & Noble is an example of a clicks-and-mortar company.

clicks-and-mortarbusinesses that use the Internet in addition to physical locations to sell goods and services

Graphic Organizer

Advantages and Disadvantages of E-Tailing to Consumers

Advantages Disadvantages

Convenience

Choices

Buying power

Additional charges

Immediacy

Relying on observation

Privacy Issues

Some companies use software to track consumers. Customer-tracking software follows what customers are doing on the Web as they shop and offers to help if it seems a customer cannot find a product.

The Basics of E-Commerce

Some people find that purchasing ane-ticket is easier and cheaper than visiting an actual store.

e-ticketelectronic ticket

Graphic Organizer

E-Tickets

Airlines

Concerts

MuseumsMovies

AmusementParks

1. How have virtual businesses changed the business world?

Entrepreneurs can conduct businesses from their homes, communicate with customers worldwide, and operate via the Internet.

2. How is an e-tailer different from other businesses?

An e-tailer sells products over the Internet.

3. What are two advantages and two disadvantages to e-tail for you as a consumer?

Advantages: convenience and choice. Disadvantages: shipping charges; time for delivery; and you cannot always judge the product’s quality.

Chapter 9

Technology andBusiness

Section 9.2

E-Commerce

End of