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E Business

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E-commerce Defined E-commerce involves digitally enabled

commercial transactions between and among organizations and individuals

Digitally enabled transactions include all transactions mediated by digital technology

Commercial transactions involve the exchange of value across organizational or individual boundaries in return for products or services

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E-commerce vs. E-business Debate among consultants and academics about

meanings and limitations of terms e-commerce and e-business

We use the term e-business to refer primarily to the digital enablement of transactions and processes within a firm, involving information systems under the control of the firm

E-business does not include commercial transactions involving an exchange of value across organizational boundaries

The Difference between E-commerce and E-business

Figure 1.1, Page 11

Why Study E-commerce E-commerce technology is different and more

powerful than any of the other technologies that we have seen in the past century.

E-commerce has challenged much traditional business thinking

E-commerce has a number of unique features that help explain why we have so much interest in e-commerce

10 Apr 2023 ITM 3232.1 E Business 6

Unique Features of E-commerce E-commerce definitely enjoys some unique

features, which sets it apart from traditional retail business model; these unique features have also immensely helped in the growth of e commerce business around the world.


Unique features of E-commerce

1. Ubiquity 2. Global reach 3. Universal standards 4. Information richness 5. Interactivity 6. Information density7. Personalization/customization8. Social technology


Contd.. Breaks geographical barrier:

Unlike traditional retail business, e-commerce is not bounded by geographical barriers. Today an e commerce company can easily sell its products to consumers residing in any part of the country.


Contd.. Saves precious time:

Ecommerce helps in saving the most important thing in today’s modern world: ‘Time’. Consumers from the comfort of their home, office and even café can buy any product they wish to buy. Thanks to e-commerce, consumers save lot of precious time that is otherwise wasted if they opt for traditional shopping.


Contd.. Accurate information: Today e commerce

companies across the world are doling out product information’s that are accurate & to the point, which eventually helps consumers to make better buying decision. These information’s are free from all the inaccuracy & hidden facts that are very much used by traditional retail models as their selling strategy. Besides, e commerce companies also provide accurate information to customers about billing payment & shipping.


Contd.. Ubiquity: Ubiquity means state of being

everywhere at once. With unprecedented growth in the sales of tablets & smart phones, laptops and other internet related gadgets, e commerce companies literally follow their consumers wherever they go. E commerce shopping can be done even when consumer is walking or jogging.


Contd.. Impersonal interaction: Since e commerce

technology completely depends on internet & web to reach to its customers, the interaction with consumers will always be impersonal in nature; as in it is not face-to-face interaction.


Contd.. Customers are truly king in the e

commerce world: Today every month literally hundreds of e commerce companies are popping up in every corner of the world. This intense among E commerce companies is only befitting customers, who today have more choices to choose from and discount vouchers to avail – for instance Littlewoods Voucher Codes.

http://www.voucherking.co.uk/littlewoods.html


Contd.. Power of accessibility: Since today e

commerce is so easily accessible by the virtue of power of internet, consumers can buy anything & everything as and when they desire for. In fact a mere impulsive desire or slight craving for a product can lead to expensive shopping, this is all thanks to accessibility to shopping that is possible only via e commerce technology.


Contd.. Cuts supply chain: E commerce technology

has immensely helped in cutting the cumbersome supply chain of wholesale & retail and also overreliance on sales force team. This only helps in reducing the cost of the product, which eventually benefits the customer.


Contd.. Ever changing nature of business: Since

today technology is changing at lightening speed by every passing day, the nature of e commerce business will also change along with it. Who knows technology development in coming years will make e commerce more customer friendly, or there can be other fundamental changes to the e commerce business too.


Contd.. Technology can equally be barrier: Technology

has helped e commerce companies to break geographical & other barriers. However overreliance on technology & complete absence of face to face interaction has created immense trust barrier between e commerce companies and customers. This is especially true in the case of conservative country like India where even today people don’t completely trust e commerce companies, especially when it comes to on line payment


E Commerce Drivers

Drivers that promote e-Commerce are: Digital Convergence Anytime, Anywhere, Anyone Changes in Organization’s Make-up Widespread Access to IT Increasing Pressure on Costs & Profit Margins Demand for Customized Products & Services Speed or Time Reduction


E Commerce Drivers contd.. Digital convergence:

Digital devices can now communicate with one another. The Internet made it all possible.


What is Digital convergence? The term "digital convergence" means the

ability to view the same multimedia content from different types devices and thanks to the digitization of content (movies, pictures, music, voice, text) and the development of connections methods.


E Commerce Drivers contd.. Anytime, anywhere, anyone:

This means that anyone can communicate with the e-merchant or shop online 24 hours a day from anywhere in the world.


E Commerce Drivers contd.. Changes in organizations:

Knowledge workers at the lower level in the organization can now take on responsibilities were once were relegated to lower or junior managers. The focus is on empowerment.


E Commerce Drivers contd.. Widespread access to IT:

Globalization and surge in the demand for information and communication for business and pleasure placed IT in the frontline.


E Commerce Drivers contd.. Increasing pressure on operating costs and

profit margins:E-Commerce addresses these concerns quickly (efficiently), effectively and at low cost.


E Commerce Drivers contd.. Demand for customized products and

services:Today’s customers are expecting higher quality and better performance regarding products and services.


E-commerce Myths 1. It’s Easy. Undoubtedly, there are

infomercials on after I go to bed that tout how easy e-commerce is for anyone. But in reality, there will be obstacles to overcome: customer service fires that need to be put out, charge backs that will require attention, and technical issues you need to get help to solve. So it’s not easy but is doable with persistence.


E-commerce Myths – contd.. 2. It’s Free. You get what you pay for and

nothing is free. You may be able to save money doing many of the tasks yourself, such as writing product descriptions, taking product photos, and marketing. You will still have a hosting bill, cost of goods, and fees for processing credit cards.


E-commerce Myths – contd.. 3. No Experience needed. You may not need

e-commerce experience; however, experience in starting a business, marketing, merchandising and branding will all help you succeed.


E-commerce Myths – contd.. 4. It’s not a business. E-commerce is e-

business which means this IS a business. You need products or services, marketing, company policies, accounting, IT, fulfillment, customer support and more.


E-commerce Myths – contd.. 5. Manufacturer pictures will work. Stock

images show you as a copycat whenever someone is searching for a specific product. Take your own pictures and stand out from the crowd.


E-commerce Myths – contd.. 6. Only price matters. Competing on price

has been successful for the few, but unrealistic for the majority since it requires that you generate a massive volume of sales for substantial profit. Setting yourself apart as a leader and authority, or offering stellar customer service and ease of shopping, can allow you to command a higher price.


E-commerce Myths – contd.. 7. Build it and they will come. Just like any

store, an online store needs traffic. And since there is no foot traffic in the online world, you need to get your internet marketing hustle on to drive traffic to your online store.


E-commerce Myths – contd.. 8. Fraud. In the beginning you need to check

everything for potential fraud. Fraudulent orders cut your profits and could put you out of business; especially if you leverage drop shipping.


E-commerce Myths – contd.. 9. Competition. Know who your competition

is before you open up shop. Like a hawk, watch every move they make, so you don’t get caught by surprise on anything. Google alerts on company names is a good place to start.


E-commerce Myths – contd.. 10. One year, one million dollars. I would

love to know where people get this one from. It is possible to build a million dollar online business in a few years; previous experience in other e-commerce businesses is a huge predictor of success though.

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Education