Chapter 1 Flashcards
defined as the exchange of goods and services
between two or more entities physically
Commerce
Refers to business transactions or information exchange, as well as
buying and selling products from person to person.
Traditional Commerce
Traditional street-side business that offers goods and services to
its customers face-to-face in an office or store that the business
owns or rents
Brick and Mortar
companies and individuals that buy and sell goods and services
over the internet using technology such as Electronic Data
Interchange (EDI) and Electronic Funds Transfer (EFT).
E-COMMERCE
includes buying and selling goods and
services online.
Digital Commerce
the act or process of selling products via an
internet or mobile app, auction site, online classified advertisement,
online shop, social networking, social media or web shop.
Online Selling
the structured
transmission of data between organizations by electronic means
Electronic Data Interchange (EDI)
used to transfer electronic documents or business data from
one computer system to another computer system.
Electronic Data Interchange (EDI)
the electronic exchange or
transfer of money from one account to another.
Electronic Funds Transfer (EFT)
refers to any business that applies internet technologies
in its operation.
E-business
Conducting all business operations using digital
technology.
E-business
is the process of buying and
selling of goods and services online.
E-Commerce
Electronic Data Interchange (EDI) was developed
1960s
Michael Aldrich built the first online shopping platform
using videotex
1979
Boston Computer Exchange became the first online
marketplace
1982
Tim Berners-Lee invented the World Wide Web
1989
The Internet became publicly available
1991
Netscape introduced SSL encryption
1994
Amazon and eBay were launched
1995
PayPal was founded
1998
Alibaba launched, becoming a major B2B e-commerce
platform.
1999
The dot-com bubble burst
2000
Amazon Prime was introduced
2005
Apple App Store launched
2008
Bitcoin was introduced, opening possibilities for
cryptocurrency transactions
2009
Instagram and Pinterest launched
2010
Google Wallet launched
2011
Amazon launched Alexa
2015
Shopify grew
2016
TikTok gained popularity, later influencing social
commerce.
2018
The COVID-19 pandemic accelerated online shopping
2020
Live streaming e-commerce became a major trend in
China and expanded globally.
2021
Metaverse shopping and AI-powered
2022
TikTok Shop
2023
Trends like voice commerce, drone
deliveries, AI-driven personalization, and blockchain-based
transactions continue to shape the future of e-commerce.
2024 & Beyond
refers to electronic trade that takes place
between companies.
Business to Business
B2B
Consumers are involved. Producers buying
components from suppliers and manufacturers selling finished
goods to distributors.
Business to Business
B2B
simplest and most recognizable form of e-commerce.
Direct trade between companies and consumers.
Business to Consumer
B2C
Online
businesses sells goods and services to the general public.
Business to Consumer
B2C
business model where individuals (consumers) create value
that businesses consume
Consumer to Business
C2B
Complete reversal of the traditional
sense of exchanging goods,
Consumer to Business
C2B
consumers are given a venue to trade among themselves. It
is not required to set up a proper business to sell.
Consumer to Consumer
C2C
Anybody can sell
anything. Mainly focuses on buying and selling goods or services
between consumers.
Consumer to Consumer
C2C
decentralized exchange of goods, services, or information
directly between individuals, without the involvement of a central
authority or business intermediary
Peer to Peer
P2P
Often facilitated by digital
platforms that connect users. Focus on sharing or lending
resources, services, or data.
Peer to Peer
P2P
Types of Electronic Payments
- Credit & Debit Cards
- E-Wallets (Digital Wallets)
- Online Banking & Fund Transfers
- Payment Gateways
- QR Code Payments
- Cryptocurrency Payments
- Contactless Payments (NFC)
- Buy Now, Pay Later (BNPL)
Visa, Mastercard, JCB, and UnionPay
enable cashless transactions.
Credit & Debit Cards
Apps like GCash, Maya, PayPal, and Apple Pay
E-Wallets (Digital Wallets)
Bank apps and services like BPI Online, BDO Digital Banking, and Instapay
Online Banking & Fund Transfers
Platforms like PayMongo, Xendit, and
Dragonpay
Payment Gateways
Scanning QR codes for fast payments
(e.g., GCash QR, Maya QR, WeChat Pay).
QR Code Payments
Bitcoin, Ethereum, and other digital
currencies
Cryptocurrency Payments
Tap-to-pay technology via
Google Pay, Apple Pay, and RFID cards.
Contactless Payments (NFC)
Services like Spaylater, BillEase,
and Homecredit allow installment payments without a credit card
Buy Now, Pay Later (BNPL)
Buying, selling, and conducting financial transactions through
mobile devices like smartphones and tablets
MOBILE COMMERCE (M-COMMERCE)
It is a growing
segment of e-commerce, enabling users to shop, pay bills, transfer
money, and more through mobile apps and websites.
MOBILE COMMERCE (M-COMMERCE)
an order fulfillment method where the seller does
not keep inventory.
Dropshipping
when a customer makes a purchase,
the order is sent to a third-party supplier who ships the product
directly to the customer.
Dropshipping
handle inventory storage, packing, and
shipping on behalf of e-commerce businesses
Fulfillment Services
Unlike dropshipping,
sellers own the inventory but let a fulfillment center manage
logistics.
Fulfillment Services
BENEFITS OF E-COMMERCE
Global Reach
Data-Driven Decisions
24/7 Availability
Lower Costs
– Sell to customers worldwide.
Global Reach
– Use analytics to improve sales.
Data-Driven Decisions
– No time restrictions for shopping.
24/7 Availability
– Reduce expenses compared to physical stores
Lower Costs
