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.com, 2005) – Protects the web site– Prevents fraudulent actions

Different E-Commerce Methods

• Different businesses use different e-commerce 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 Visitors2. Converting Visitors3. 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 (non-customers) 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 per-customer 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

• large retail site, with unused floor-space.

• After E-Commerce

• Sales have increased exponentially for both businesses

Mitch’s Surf Shop• Before E-Commerce

• Sales down due to competitors advantage.

• After E-Commerce

• With website - International sales now easy and profitable

E-Commerce and Bridal Registry

• New market trend: E-Bridal 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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