Chapter 7 Flashcards
E Commerce Benefits
Increases Reach
Reduce Processing Costs
Removes Barriers
E-Business
Using the internet for buying, selling, customer service, collaboration, e-learning, and internal operations
Brick-and-Mortar Organizations
Businesses where products, processes, and delivery are all physical
Virtual Organizations
Businesses where products, processes, and delivery are all digital
Clicks-and-Mortar Organizations
Businesses that operate both online and in physical locations
E-Commerce Business Models Examples
Members
Online Auctions
Viral Marketing
B2C (Business-to-Consumer)
When businesses sell products or services directly to individuals
B2B (Business-to-Business)
When businesses sell products or services to other businesses. It makes up most of e-commerce activity
C2C (Consumer-to-Consumer)
When individuals sell products or services directly to other individuals, often through auctions or classified ads
B2E (Business-to-Employee)
When a company uses e-commerce to provide services and information to its employees, such as managing benefits, training, discounts, and ordering supplies
E-Government
The use of internet technology to provide information and services to citizens (G2C) and businesses (G2B), often including government procurement rules
Auction
A process where buyers or sellers bid competitively, and prices change based on the bids
Benefits of E Auctions
Increased Revenue for Sellers
Bargain Lower Prices for Buyers
Forward Auctions
Sellers offer items to multiple buyers, and the highest bidder wins
Reverse Auctions
A buyer requests bids from sellers, and the lowest bidder wins
Request for Quotation (RFQ)
A buyer posts details about a needed purchase, and suppliers submit electronic bids
Electronic Marketplace
An online space where buyers and sellers do business
Electronic Payment
Systems that let customers pay online instead of using cash or checks
Traditional System Disadvantages
No Face to Face Contact for Cash
Not everyone accepts credit cards
Less Secure
Where are E Cheques primarily used in
B2B
E-Commerce Limitation
Security Standards
Slow/Costly in less developed countries
Insecure
B2B vs B2C
B2B EC is larger by volume, but B2C EC is more complex due to many buyers making millions of small transactions with a few sellers
Why B2C is Complex
Companies like Amazon must manage thousands of small transactions, process orders quickly, ship products on time, and handle returns
Challenges in B2C
Competition
Order Fulfillment
E-Tailing (Electronic Retailing)
The direct sale of products and services online through storefronts or electronic malls, often using catalogs or auctions
The Long Tail
A strategy of selling many unique items in small quantities
Electronic Storefront
A company’s website where customers can place orders
Electronic Mall
A website with multiple online shops under one address
Disintermediation
Removing middlemen in electronic commerce
Intermediaries (Middlemen)
They provide information and offer services like consulting
Fintech
An industry of companies using technology to offer financial services, competing with traditional banks and institutions
Lending
P2P lending platforms use technology to connect borrowers and lenders, offering faster, cheaper, and more accessible credit than traditional banks
Spamming
Sending unwanted emails without the recipient’s consent
Viral Marketing
When people share marketing messages about a product with their friends
Issues in E-Tailing
Channel Conflict
Order Fulfillment
Personalized Pricing
Channel Conflict
When a company sells directly online, upsetting its existing distributors
Multichannelling
A process where a company combines its online and offline channels
Personalized Pricing
Setting prices based on a customer’s ability to pay
Sell-side Marketplace
A B2B model where organizations sell to other organizations through their own or third-party e-marketplace
Buy-side Marketplace
A B2B model where organizations buy products or services from others electronically, often using a reverse auction
E-Procurement
Buying goods and services using electronic tools
Group Purchasing
Combining orders from multiple buyers to get a volume discount
Public Exchanges
Online marketplaces with many buyers and sellers, open to everyone, often run by a third party
Three Types of Public Exchanges
Vertical
Horizontal
Functional
Vertical Exchanges
Connects buyers and sellers in specific industry
Horizontal Exchanges
Connect buyers and sellers across many industries. They are used primarily for MRO materials (Maitenance, Repair, Operations)
Functional Exchanges
Services like temporary help or extra office space are traded as needed
Ethical Issues of E-Commerce
Privacy
Employee Displacement
Impact on Some Workers
Credit Card Fraud Prevention
Technology/Data analysis to identify potential
CC Fraud Triggers
Repeat Order in Short Time
Different Shipping Address
Multiple Shipping Addresses
Mass of Same Product
Legal Issues of E-Commerce
Fraud
Affiliate Marketing
Domain Names
Cybersquatting
Taxes/Fees
Copyright
