E-Commerce Jennifer Bui Aaron Coyle Arthur Pham Luke Lamarra Nick Milosavljevic.
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Transcript of E-Commerce Jennifer Bui Aaron Coyle Arthur Pham Luke Lamarra Nick Milosavljevic.
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
Thank you for viewing our Presentation
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