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An Introduction to E-Commerce

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An Introduction to E-Commerce What is e-commerce? What are the

categories of e-commerce?

What are the advantages and disadvantages of e-commerce?

Example

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What is E-CommerceE-commerce is a general term for any type of business, or commercial transaction that involves the transfer of information across the Internet. This covers a range of different types of businesses from consumer-based retail sites, like Amazon.com, through auction and music sites like eBay or MP3.com, to business exchanges trading goods or services between corporations.

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E-commerce Categories There are Three Major e-commerce

categories: Business to Consumer (or B2C) e-commerce Business to Business (or B2B) e-commerce

(sometimes called e-procurement) Consumer-to-consumer (or C2C) e-commerce

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B2C e-commerce Description

Businesses sell products or services to individual customers (consumers)

Example Walmart.com sells merchandise to consumers

through its Web site Web site

www.walmart.com

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B2B E-commerce Description

Businesses sell products or services to other businesses

Example Grainger.com sells industrial supplies to large

and small businesses through its Web site Web site

www.grainger.com

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C2C e-commerce Description

Participants in an online marketplace can buy and sell goods with each other

Example Consumers and businesses trade with each other on

eBay.com

Web site www.ebay.com

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Advantages of E-commerce Increases sales, decreases cost

Allows small businesses to have global customer base

Reduced cost through electronic sales enquires, price quotes and order taking

Provides purchasing opportunities for buyers (businesses can identify new suppliers and partners)

Increase speed and accuracy for exchanged information, thus reducing cost

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Disadvantages of E-commerce Inability to sell some products (e.g. high cost

jewelry and perishable foods, although supermarkets like www.Tesco.com delivers to your home)

The newness and evolution of the current technology

Many products require a large number of people to purchase to be viable

High capital investment

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E-commerce Categories Example You are a computer manufacturing

company who performs the following activities on the Internet: Sells computers to individuals (B2C) Purchases parts (e.g. hard drives, power

supplies etc.) from a supplier (B2B) On eBay.com individuals buy and sell this

brand of computers (C2C)

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