unit 1 Flashcards
meaning of e-commerce
The buying and selling of goods and services over the internet. It includes the entire online process, from browsing and selecting products to payment and delivery. Often seen as a sub-category of e-business, which encompasses all aspects of running a business online.
characteristics
24/7 accessibility, lower costs, personalisation, fast paced and dynamic, wider variety of products, global reach, convenience.
origin
- The roots of e-commerce can be traced back to the development of Electronic Data Interchange (EDI) in the 1960s, which allowed businesses to exchange documents electronically.
- The rise of the internet in the 1990s made online shopping accessible to a wider audience.
- Key milestones include the launch of Amazon (1994), eBay (1995), and Alibaba (1999).
process
product listing, customer browsing, product selection, checkout, payment processing, order fulfilment, delivery, after-sales service
key drivers of e-commerce
- Technological Advancements:
Improved internet infrastructure
Mobile technology
Emerging technologies (VR, AR, AI) - Changing Consumer Preferences:
Convenience and time-saving
Wider product selection
Competitive pricing
Personalization and customer experience - Economic Factors:
Rising disposable incomes
Globalization - Social and Cultural Factors:
Growing trust in online transactions
Shifting demographics
Social media influence - Regulatory Environment:
Supportive government policies
Data privacy regulations
elements of e-commerce
Front-end:
Website or Online Storefront
Product Information
Search and Navigation
Shopping Cart and Checkout
Customer Reviews and Ratings
Back-end:
Inventory Management System
Payment Processing
Order Fulfillment
Customer Relationship Management (CRM)
Analytics and Reporting
Supporting Elements:
Marketing and Advertising
Logistics and Shipping
Security and Privacy
Legal and Compliance
Customer Service
traditional vs. e-commerce
Feature - traadtional vs. e-commerce
Location
Accessibility
Product selection
Customer interaction
Pricing
Payment methods
Delivery
Marketing
Inventory management
Data collection
Personalization
Scalability
Overall experience
benefits
For Businesses:
Reduced costs
Increased sales
Improved customer service
Faster time to market
Data-driven insights
For Consumers:
Convenience
Competitive pricing
Personalized experience
Time-saving
Variety and choice
standards
- Payment Card Industry Data Security Standard (PCI DSS): Protects sensitive cardholder data.
- Open Web Application Security Project (OWASP): Defines best practices for securing web applications.
- Secure Sockets Layer (SSL) and 4. Transport Layer Security (TLS): Encrypt communication between browser and server.
- Electronic Data Interchange (EDI): Enables standardized data exchange between businesses.
- Uniform Resource Identifier (URI): Standardizes the way to address resources on the internet.
technologies
Foundation for online stores (e.g., Shopify, Magento).
Content Management Systems (CMS): Manage website content (e.g., WordPress, Drupal).
Payment gateways: Process online payments securely (e.g., Stripe, PayPal).
Marketing automation tools: Automate marketing tasks, personalize experiences (e.g., Mailchimp, ActiveCampaign).
Analytics and reporting tools: Track website traffic, sales, customer behavior.
Inventory management systems: Track product availability, manage stock (e.g., TradeGecko, Zoho Inventory).
Customer Relationship Management (CRM) systems: Manage customer data, interactions (e.g., Salesforce, HubSpot).
Artificial intelligence (AI): Personalize recommendations, optimize logistics, improve service.
Blockchain: Enhances security, transparency in transactions.
e-commerce models
b2b
b2c
c2c
b2b2c
b2g
social commerce
subscription model
hybrid model
marketplace
d2c
mobile commerce (meaning)
Buying and selling goods/services through mobile devices like smartphones and tablets.
Rapidly growing segment of e-commerce due to convenience and accessibility of mobile devices.
m-commerce (characteristics)
CONVENIENCE, ACCESSIBILITY, PERSONALIZATION, FASTER TRANSACTIONS, LOCATION-BASED SERVICES, SOCIAL MEDIA INTEGRATION
m-commerce (enabling technologies)
-Mobile apps: Dedicated shopping experiences for brands/retailers.
-Responsive web design: Websites adapting to different screen sizes/devices.
-Mobile payment solutions: Secure, convenient payment methods (e.g., Apple Pay, Google Pay).
-Push notifications: Keep customers informed about promotions, products, order updates.
-Near Field Communication (NFC): Enables contactless payments in physical stores.
barriers to e-commerce
lack of trust, online payment fraud, poor shopping experience, lack of favourable reviews, cart abandonment, no or less knowledge of online platforms, no instant hands on product
