E-commerce is the application of information technology to support business processes and the exchange of goods and services. E-cash came into being when people began to think that if we can store, forward and manipulate information, why can't we do the same with money. Both blanks and post offices centralise distribution, information and credibility. E-money makes it possible to decentralise these functions.

Electronic data interchange, which is the subset of e-com, is a set of data definitions that permits business forms to be exchanged electronically. The different payment schemes E-cash, Net-cash and PayMe system and also smart card technology is also. The foundation of all requirements for commerce over the world wide web is secured system of payment so various security measures are adopted over the Internet.
E-commerce represents a market worth potentiality hundreds of billions of dollars in just a few years to come. So it provides enormous opportunities for business. It is expected that in near future, electronic transaction will be as popular, if not more that the credit card purchases today.

Business is about information. It is about the right people having the right information at the right time. Exchanging the information efficiently and accurately will determine the success of the business.
There are three phases of implementation of E-Commerce.


" Replace manual and paper-based operations with electronic alternatives
" Rethink and simplify the information flows
" Use the information flows in new and dynamic ways


Simply replacing the existing paper-based system will reap new benefits. It may reduce administrative costs and improve the level of accuracy in exchanging data, but it does not address doing business efficiently. E-Commerce application can help to reshape the ways to do business

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E-Commerce
CONCEPTS AND DEFINITIONS
What is e-commerce?
• refers to a wide range of online business activities for products and services
What is e-commerce?
• It also pertains to any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contact
What are the different types of e-commerce?
• Business-to-business (B2B)
• Business-to-consumer (B2C)
• Business-to-government (B2G)
• Consumer-to-consumer (C2C)
• Mobile commerce (m-commerce)
What is B2B e-commerce?
Business to Business
• is simply defined as e-commerce between companies.
• This is the type of e-commerce that deals with relationships between and among businesses.
B2B Benefits
• Helps to remove barriers raised by geographic fragmentation of the market
• Helps in eliminating unnecessary inventory build-up for both buyers and sellers
• Promotes information flow and enhances transparency, supply-chain management becomes possible
• Both the buyers and sellers enjoy reduced order processing costs and lower cost of interacting with each other
B2B e-commerce
• Other Examples:
– Heinz selling ketchup to Mc Donalds
– Intel selling microprocessor to Dell
What is B2C e-commerce?
Business-to-consumer e-commerce, or commerce between companies and consumers, involves customers gathering information; purchasing physical goods (i.e., tangibles such as books or consumer products) or information goods (or goods of electronic material or digitized content, such as software, or e-books); and, for information goods, receiving products over an electronic network.
What is B2C e-commerce?
Selling and buying of goods and services via the web from web retailers to web customers
• 3 Major challenges of B2C e-commerce
• Getting browsers to buy things
• Building customer loyalty
• Fulfillment
• Getting browsers to buy things
• Getting visitors to the site if only half the battle. Whether they buy something is what determines if you win.
• Building customer loyalty
With so many sites out there, its difficult to build a strong relationship with customers
B2C can you build loyalty by:
• Focus on personalization
• Recognize customers’ individual preference
• Utilize an easy-to-use customer service application(chat, phone number, etc.)
• Fulfillment
Focus on customer satisfaction and delivery fulfillment
Fulfillment can be replaced with increased focus and investment in supply chain and logistical technologies
B2C e-commerce
• Example:
– Drugstore.com
– Beyond.com, Barnes
– Noble and ToysRus
– Dell selling laptops
B2C e-commerce
What is B2G e-commerce?
• Business-to-government e-commerce or B2G is generally defined as commerce between companies and the public sector
– Business pay taxes, file reports, or sell goods and services to Govt. agencies.
B2G e-commerce
What is C2C e-commerce?
• Consumer-to-consumer e-commerce or C2C is simply commerce between private individuals or consumers
• This means that a consumer sells something to another consumer with the help of an online business
• Napster model (a protocol for sharing files between users used by chat forums similar to IRC) and other file exchange and later money exchange models
• classified ads at portal sites such as Excite Classifieds and eWanted (an interactive, online marketplace where buyers and sellers can negotiate and which features “Buyer Leads & Want Ads”).
How is the Internet relevant to e-commerce?
• The Internet allows people from all over the world to get connected inexpensively and reliably. As a technical infrastructure, it is a global collection of networks, connected to share information using a common set of protocols.
• Also, as a vast network of people and information, the Internet is an enabler for e-commerce as it allows businesses to showcase and sell their products and services online and gives potential customers, prospects, and business partners access to information about these businesses and their products and services that would lead to purchase
• Aside from reducing the cost of doing business what are the advantages of e-commerce for businesses?
• Aside from reducing the cost of doing business what are the advantages of e-commerce for businesses?
• Aside from reducing the cost of doing business what are the advantages of e-commerce for businesses?
• How is e-commerce helpful to the consumer?
• In C2B transactions, customers/consumers are given more influence over what and how products are made and how services are delivered, thereby broadening consumer choices.
• How is e-commerce helpful to the consumer?
• E-commerce allows for a faster and more open process, with customers having greater control.
• How is e-commerce helpful to the consumer?
• E-commerce makes information on products and the market as a whole readily available and accessible, and increases price transparency, which enable customers to make more appropriate purchasing decisions
E-COMMERCE APPLICATIONS: ISSUES AND PROSPECTS
• What are the existing practices in developing countries with respect to buying and paying online?
A. Traditional Payment Methods
● Cash-on-delivery. Many online transactions only involve submitting purchase orders online. Payment is by cash upon the delivery of the physical goods.
● Bank payments. After ordering goods online, payment is made by depositing cash into the bank account of the company from which the goods were ordered. Delivery is likewise done the conventional way.
• What are the existing practices in developing countries with respect to buying and paying online?
B. Electronic Payment Methods
● Innovations affecting consumers, include credit and debit cards, automated teller machines (ATMs), stored value cards, and e-banking.
● Innovations enabling online commerce are e-cash, e-checks, smart cards, and encrypted credit cards. These payment methods are not too popular in developing countries. They are employed by a few large companies in specific secured channels on a transaction basis.

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Electronic Commerce
Essential Materials
Outline
Introduction
e-Business models
How to
Build an e-Commerce site
Attract and keep customers
Get Paid
Manage the e-commerce business
Secure the site
e-Business Implementations
Application Service Provider (ASP)
Questions?
What exactly is e-Commerce?
What is B2B e-Commerce?
Can I start my own e-Commerce site?
How do I accept payments by credit card?
How do I get customers to visit my site?
Do I have to accept credit cards?
How to succeed in e-Commerce?
Any more questions about e-Commerce?
Introduction
What is e-Commerce?
Electronic Commerce (EC) or “e-Business”
Buying and Selling goods or services on the Internet (WWW)
What is the latest development? M-Commerce?
What is ASP?
Application Service Provider
Also means Active Server Page (HTML)
A company offers individuals or enterprises to host their applications or services on this ASP company. (low budgets for small companies, outsourcing for large companies)
The importance
Terminology
Dedicated line – A point-to-point, hard wire connection between two service locations.
Leased line – A telecommunications line dedicated to a particular customer along predetermined routers.
Outsourcing – The transfer of components or large segments of an internal IT infrastructure, staff, processes or applications to an external resource such as Application service provider (ASP).
e-Business solutions
e-Business Models
Storefront model
Auction model
Portal Model
Dynamic Pricing Models
B2B Exchanges
B2B Service Providers
e-Learning
Storefront Model
The storefront model combines transaction processing, security, online payment which allows merchants to sell their products to the customers on the Web.
Many famous storefront model companies are Business-to-Consumer (B2C) companies.
more.com
Health and beauty products
ticketmaster.com
Sell tickets
Storefront Model
Allow companies to conduct business 24-by-7 (all-day, everyday).
One of the most commonly used model is “shopping cart”
An order-processing technology that allows user to accumulate the shopping list and continue shopping.
Supported by product catalog, merchant server and database technology.
amazon.com
icare.com.hk
Shopping Cart Example
Shopping Cart Sotware
http://poorrichardfreeinfo/shop.htm
Storefront Model
Another model is “online shopping mall” which provides a wide selection of products and services.
Customers can purchase items from many stores in a single transaction.
Offer speed and add convenience
mall.com
shopnow.com
e-buy.com.hk
Shopping Mall Example
Auction Model
Internet User can login to the online auction sites, either bidder or seller.
Sellers post their items and wait for the buyers to bid.
Auction sites get commission on every successful auction.
E.g. most profitable: ebay.com
HK: auction.timway.com
http://hk.auctions.yahoo
Reverse Auction model
Allow buyer to set the price, epurchasingagent.com
Auction Model Example
Portal Model
Allow visitors to find everything within the website.
Horizontal Portal
Wide-ranged of topics
E.g. google.com, yahoo.com
Vertical Portal
Offer specific information on a single area of interest.
E.g. webmd.com (medical information)
Dynamic Pricing Model
Name-your-price Business Model
Customers choose their price for the products or services (priceline.com).
Comparison Pricing Model
Customers poll some merchants and find the lowest prices (bottomdollar.com)
Demand-Sensitive Pricing Model
Enables customers to get better services and prices. (mobshop.com)
Bartering Model
Exchange items (ubarter.com)
Pricing model example
B2B Exchanges
Define as buying, selling, partnering, bartering or trading conducted between two or more business (B2B).
Goldman Sachs has estimated that B2B will generate $1.5 trillion in revenues by 2004.
Allow Business to buy, sell, auction, barter and distribute products and services.
Examples:
ework.com (Exchange employee)
itoi.com (Industry to Industry)
biz2biz.com (Business to Business)
icgcommerce.com, tradeaccess.com