ECommerce Ecommerce stands for electronic commerce It means

E-Commerce • E-commerce stands for electronic commerce. • It means to carry out financial and business dealings using internet. • A person can deal with his customers throughout the world. • People can buy and sell good on internet. • Even payments can be made using credit card numbers etc. Chapter 72

Different types of ECommerce Business (organization) Customer (individual) Business (organization) B 2 B (e. g TPN) B 2 C (e. g Amazon) Customer (individual) C 2 B (e. g Priceline) C 2 C (e. g e. Bay) Chapter 72

Types of E-Commerce 1. Business-to-consumer: • • • B 2 C e-commerce consists of the sale of goods and services to the general public. In this type, customer or consumer can visit the website and purchase goods online. Shopping cart is used to collect the purchases. Online shopping is normally performed using a secure internet connection. B 2 C: www. amazon. com 2. Customer to customer: • • • C 2 C e-commerce takes place between two consumers. For example one consumer sells an item through online auction. The other consumer purchases the item by offering highest bid. Many websites provide the facility of online auction where C 2 C E-commerce occurs. C 2 C: www. e. Bay. com 3. Business to business : • • B 2 B e-commerce takes place between to businesses. One business provide service to other business. Online advertisement, recruiting, sales , marketing, technical support are examples. B 2 B: www. tpn. com Chapter 72

Business wants to sell using Ecommerce • A domain name e. g. Amazon. co. uk • A website or webshop with all of their products displayed • A secure way of taking payment from their customers • An automatic way of sending an order confirmation by email • A way of sending orders to the customers Chapter 72

customer wants to buy products using ecommerce • • A computer Access to the Internet Find the website / webshop they are interested in Choose the item they want to buy Add it to the 'shopping cart' Continue shopping or proceed to the 'checkout' Enter their personal details such as name, address and account number • Enter their payment method e. g. credit card, paypal, cheque • Confirm their order • Wait for their item to arrive Chapter 72

Shopping on the Internet The Benefits to Business – – – Lower overheads (don’t need to buy land to display goods) Can easily collect customer data for marketing purposes Don't need expensive shop premises Usually need less staff with an online business Can easily keep track of competitors – Don't have to pay so many costs from running a shop such as insurance The customer benefits: • • • Ease of use (no more shopping trips!) Businesses pass on cost savings in lower prices Wider choice of goods/services (especially in the rural community) Can search massive databases to find EXACTLY what you want. There is no need to travel - saving time and money You can shop from the comfort of your own home You can shop any time, night or day, 365 days a year. There are no heavy bags to car. There are no crowds to deal. You can often get discounts on prices Chapter 72

Shopping on the Internet • Disadvantages for businesses • Need to pay a lot of money to have a professionally designed website developed – Cost of setting up e-commerce sites – Not everybody access to the Internet • -Need staff with expertise to keep the website maintained • - If the website goes down then no one can purchase things • - No personal contact with customers so repeat orders might be harder to get • - A lot of online fraud, risk of losing money on sales Chapter 72

Shopping on the Internet • -Disadvantages for Customers • Security concerns with personal and credit card details • - You can't check the quality when purchasing like you could in a shop • - Things might look different online to what you get e. g. slightly different colours • - The shop might not send exactly what you ordered, you might get a substitute • - You need to be at home to receive large or valuable parcels • - If the item doesn't arrive, you might still get charged for it. Chapter 72

Security • Ecommerce involves money. And so there will be thieves around trying to take that money away! • Laws have been created to try and safeguard your money and your rights for example the Data Protection Act and the Computer Misuse Act. • However, you need to be careful and make sure that if you want to buy things online that the site is reputable and has security measures in place. Chapter 72

On line Banking • One of the fastest growing areas of internet is online banking. • Banks and building societies are spending millions of pounds on developing their net related services. • Smile (www. smile. co. uk) is a genuine on line bank with no branch network to support customers. • Advantages: • Once your bank account running, it is easy as logging on the internet. • By accessing your account online using encrypted security codes, pay bills, direct debate, transfer money and cancel standing orders. • Cheques can be paid via a bank. • Internet banking is up to four times cheaper to operate than telephone banking and 10 times cheaper than high street banking. • Disadvantages: • Onces you want for a loan or overdeft, there will be little personal relationship to trade on, just your records Chapter 72

Benefits of Online Banking For Banks: ü Cuts payroll costs ü Extends to new markets ü Flexibility ü Image of Company For Consumers: ü Saves time/Money ü Flexible ü Can log on from almost anywhere ü Convenient ü Transaction Speed Chapter 72

Disadvantages of Online Banking • Building trust with consumers to use online banking • Laws and software issues to support online banking to ensure accountability • Security • Learning Curve • Bank Mergers • Site Changes Chapter 72

Security Tips for Consumers DO: q Make sure that you are on the correct website q Make sure that you choose a password that will not easily be decoded q Check monthly checking and credit card statements carefully each month q Report errors or problems promptly q Be sure to “Log Out” of website when finished. q Disclose personal information such as credit card or social security numbers unless you are 100% sure who you are dealing with have other browsers open while you are banking online q Download or open files that were sent from strangers because this could infect your computer and capture sensitive information without you even knowing. Chapter 72

Privacy Policies ü Most financial institutions have policies about what information they collect, how they use this information, and whom they will share it with. . ü You do have the right to inform your financial institution that you do not want your information to be shared. OPT OUT Chapter 72

Doing business on the web • It is fast and essential business tool for everyday correspondence, marketing, customer feedback and customer support. • The internet Music and video shop is one example that does all its business over internet. Chapter 72

Registering a domain name • If you want to set up in business on the internet, or if you would use email address, you need to register your chosen domain name and a few other details • You also need internet service provider. • You can register your domain name here for a fee or you can find out how to get free domain name by logging on to www. freename. co. uk. • Nominet is an internet Registry. Chapter 72

Cybersquatting • Cybersquatting Consumer Protection Act. • Cybersquatting is registering, trafficking in, or using a domain name with bad-faith intent to profit from the goodwill of a trademark belonging to someone else. • The term derives from squatting, the practice of inhabiting someone else's property without their permission. Chapter 72