Lecture 12 - E-Commerce.docx

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Western University
Computer Science
Computer Science 1033A/B
Vivi Tryphonopoulos

E-Commerce 4/26/2013 10:45:00 AM Lecture 12 E-Commerce  Electronic commerce  Any type of business or commercial transaction that involves the transfer of information across the internet  Online shopping – buying and selling goods/services on Internet o It is estimated that the United States will spend $327 billion online in 2016  E-commerce businesses sell: o Physical goods – books, gadgets, furniture, appliances, etc. (shipping involved) o Digital goods – software, eBooks, music, text, images, video etc. (immediate download) o Services – tickets, insurance etc. (e-copies)  Examples of E-commerce: o Purchasing products o Online auctions – internet auctions reaches more buyers/sellers o Internet banking – allows customers to perform banking operations the doesn’t require a physical visit o Online ticketing – air tickets, movie tickets, train tickets, sporting events, etc. History of E-Commerce  1980s: o CompuServe added a service called Electronic Mall o Purchasing from merchants was not successful  1990: o Tim Berners Lee created the World Wide Web  1994-1995: o Work began with processing online credit card sales o Jeff Bezos boxed up the first book ever sold on Amazon from a Seattle garage  Within 30 days of business he sold to online shoppers in 50 states and countries  Made it cheap to ship and easy to order from publishers  Amazon.com – set the standards for customer-oriented e-commerce websites o eBay – Pierre Omidyar – broken laser pointer Pros and Cons of E-Commerce  Advantages: o Known as the “Holy grail of retail” o For businesses:  No geographic limitations – completely mobile  Can gain new customers with search engine visibility  Lower costs  Can offer discount prices to consumer  Advertising and marketing  Personnel – automated checkouts, billing payments and inventory management  Lower number of employees  No real estate overhead required  Can offer larger catalogues  Deal with changes of cost dynamics better o For the customer:  Eliminate travel time and cost  Easy  Comparison shopping  Locate product and see/write reviews for it  Disadvantages o Lacks the personal touch o Can delay some goods in shipment  Doesn’t usually delay digital goods (eBook or music download) o Can’t experience the product before making a purchase o Security – can’t always be sure websites are secure o Harvest of other information – companies ask information about the customer’s behaviour and preferences Types of E-Commerce  Business to Business (B2B): o Both transacting parties are businesses (manufacturers, traders, retailers, etc.)  Business to Consumer (B2C): o Businesses sell electronically to end-consumers (buying clothes online)  Consumer to Consumer (C2C): o A bartering system – auction sites (eBay) o Kijiji is not a C2C – doesn’t involve an online payment Specialized Forms of E-Commerce  F-commerce – Facebook commerce o Buying and selling through Facebook o There is a belief that there is a captive audience  Reality is most aren’t actually sold on the idea  M-commerce – mobile commerce o Delivery of electronic commerce capabilities directly into consumer’s hand anyw
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