Exploring E-CommerceMohammed Arif MazumderSr. LecturerDaffodil International University

e-Commerce and e-Business• Electronic commerce (EC, or e- commerce) describes the

process of buying, selling, transferring, or exchanging of

products, services, and/or information via computer

networks, including the Internet.

• E-business refers to a broader definition of EC, not just the

buying and selling of goods and services, but also servicing

customers, collaborating with business partners,

conducting e-learning, and conducting electronic

transactions within an organization.

Snap of e-Commerce

Commerce

E (Electronic)- Commerce Traditional Commerce

Internet Commerce Mobile Commerce

Business Focused E-Commerce

Consumer focused E-Commerce

e-Commerce Consists of

• Electronic retailing (e-tailing)

• EDI (Electronic Data interchange)

• EFT (electronic Funds Transfer)

e-Commerce Consists of ….

• Electronic retailing (e-tailing)

▫ E-Retailing refers to retailing over the internet. 

Thus an e-Retailing is a B2C (Business to

customer) business model that executes a

transaction between businessman and the final

consumer. 

▫ E-Retailers can be pure play businesses like

amazon.com or businesses that have evolved from

a legacy business such as tesco.com. E-Retailing

refers to retailing over the internet. 

▫ E-tailing revenue can come from the sale of

products and services, through subscriptions to

website content, or through advertising.

▫ The e-retailing is a subset of e-commerce. 

e-Commerce Consists of ….

• EDI (Electronic Data interchange)Electronic Data Interchange (EDI) is the computer-to-computer exchange of business

documents in a standard electronic format between business partners.

A typical manual process looks like this, with lots of paper and people involvement:

The EDI process looks like this – no paper, no people involved:

Business documents –The

most common documents

exchanged via EDI are

purchase orders, invoices and

Advance Ship Notices. But

there are many, many others

such as bill of lading, customs

documents, inventory

documents, Shipping Status

docs.

e-Commerce Consists of ….

• EFT (electronic Funds Transfer)

Electronic Funds Transfer (EFT) is a system of transferring money from one bank account

directly to another without any paper money changing hands. EFT refers to any transfer of funds

initiated through an electronic terminal, including credit card, ATM, and point-of-sale (POS)

transactions.

The growing popularity of EFT for online bill payment is paving the way for a paperless universe

where checks, stamps, envelopes, and paper bills are obsolete.

The benefits of EFT include reduced administrative costs, increased efficiency, simplified

bookkeeping, and greater security.

Types of e-Commerce

Four Major Domain on which E-Commerce Works

Business (Organization)

Customer (Individual)

Business (Organization) B2B

(Brokering Sites)B2C

(e.g. Amazon)

Customer (Individual)

C2B(e.g. Priceline)

C2C(e.g. eBay)

Other Types of e-Commerce

• Government-to-Consumer(G-to-C) site: website is an

attempt by the government to reach out to people in general.

• Business-to-Government(B-to-G) site: website is a

variation of the B-to-B web site. This web site used by the

government to exchange information with various business

houses across the world.

Advantages of E-Commerce

• Able to conduct business 24 x 7 x 365

• Access the global marketplace

• Speed

• Opportunity to reduce cost

• Platform independent

• Customer self service

• Large purchase per transaction

• People can shop in different ways

• Large catalogs

• Improved customer relation

Disadvantages of E-Commerce

• Time for delivery of physical products

• Limited and selected sensory information

• Returning goods

• Privacy, security, payment, identity

• Personal service

Disadvantages of E-Commerce

• Time for delivery of physical products

• Limited and selected sensory information

• Returning goods

• Privacy, security, payment, identity

• Personal service

M-Commerce M-commerce is the buying and selling of goods and services

through wireless handheld devices.

M-Commerce is the process of paying for services using a mobile phone or personal organizer .

M-Commerce Services and Applications available:

• Mobile ticketing

• Content purchase and delivery

• Mobile banking

• Auctions

• Mobile Purchase

• Mobile marketing and advertising

Future of E-Commerce

While E-Commerce may not completely replace other forms of

Commerce,

it is likely to be the dominant mode of the commercial

transactions in

the future.

E-commerce prices will cover the real costs of doing business

on the Web

and pay investors a reasonable rate of return on their capital.

HOW?