Introduction to E-Commerce and E-Business

Topic 1 - Introduction to E-Commerce and E-Business

Topics that are briefly covered in this blog will be risks to businesses via the internet .Definitions and the difference between E-commerce and E-business. Different models of E-business and E-commerce. Also suggestions on how modern technology may have changed the future of the business market to buyers,sellers and customers.

Internet risks

·        With online purchases there can be many negative aspects, such as items not always looking or sounding the same as they are perceived online.

·        People are not always willing to give their credit or debit card details online. This could make them feel that others may be able to gain access to their banking details, giving them a false sense of security.

·        Security systems that are not understood by customers can lead to negative effects, such as being time consuming and leading customers to not processing the final purchase.

·        Fraudulent transactions by the use of stolen credit cards that are being used to purchase items or services may be costly and hard to eliminate the problem.

E-commerce

Is a process where you can buy or sell services and products online. Electronic interaction with customers, buyers and sellers. Any interaction that is done over the internet that sources through a computer or internet device.
Businesses are trying to make it easy for customer to purchase products, via card payment options. Making products and services readily available to customers without the needing to work within certain hours as a face to face retailer requires.

E-business

E-business is where the use of technology assists in the running of the business. It is not just using the Electronic system for buying or selling it can be used for supply chain management, customer relationship management, data collection and many other business strategies. E-business is known as conducting of a business via the internet.

Buy-side E-commerce
Refers to transactions that are process between an organisation and its supplier. Resources or services that are required by an organization from suppliers to help with the running of the business. This prospective is for the buying for the organisation.

Sell-side E-commerce
Refers to selling products or services to organisations customers. This is potentially for selling an organisations products and services to a consumer or customer.

Different types of E-business

B2C - Business to consumer - The business sells products or services directly to retail consumers online
B2B- Business-to-business,- comprises of businesses using the Internet to conduct transactions with other businesses  B2B businesses generate profits from direct sales.
C2B - Consumer-to-business - consumers create value and demand for products. It is based on consumers driving the businesses and customers can offer their own prices for products. C2B business include reverse auctions, where consumers can ask for a particular price for a product or service that they are considering to buy or sell. Reverse auctions are a common in C2B.
C2C - Consumer-to-consumer - Allows customers to be buyers and sellers on online marketplaces. EBay is an example of C2C, EBay works as a third-party for buyers and sellers, bringing together anxious buyers and sellers.

 Digital technology penetration rate.

Smart phones have been found to have the highest penetration rate at the moment and in Australia alone they are the second highest digital technology sold. Australia has a percentage of 37% which is the second highest rate in the world. Due to the use of technology such as smart phones internet access is made easier and more readily available to the customer. This enhancing performance for many businesses, such as phone companies, internet providers and made online access of shopping online available at the customers finger tips.

 Barriers to adoption of sell-side e-commerce by business
Lack of knowledge - Many small businesses apply e-commerce into their business and have very little knowledge on computer systems and may be limited in knowledge of fixing any problems that may arise. Therefore there is a need for knowledge and resources available to staff of  systems that are in place. This may then eliminate any problems that may arise.

Costly - Organizations initial setting up  an internet programs may find it to be time consuming and lead businesses with  the need to educate staff on the use of  new technology systems and strategies that may have been put in place. This may be a expensive  and time consuming venture for a  small organisation.

Communication - Communicating via the internet can sometimes take time for business to respond to complaints or to any questions consumers may have. This may cause customers to be unsatisfied with the service and not return in the future. Leaving customers with a negative experience can lead to unwelcoming response.

Competitive threats
There are many online networks that sell the same type of products and this could be a treat to a business. Businesses need to be aware of what other similar products are available to customers and try to make their product easier available or different in some way.

Semantic Web
Is the extension of the world via the use of the internet which enables people to share content beyond the boundaries of face to face and  through the internet websites that have been set up for the use of buying, selling and even communication.
In the modern world of technology buying and selling over the internet such as tickets through Ticketmaster/Ticketek, allows customers to purchase a variety of tickets for sporting events, concerts and many other popular events. It allows customers to choose their own seats and price range, while keeping track of tickets that are sold and still available to customers. This helping customers and working together with business partners to conduct an easy business partnership for all parties involved. This may be an effective and profitable approach to any business or organisation.

Sources
http://www.psut.edu.jo/sites/raad/eBusiness_notes/Chapter01.pdf
http://www.jstor.org/discover/10.2307/27750797?sid=21106021006803&uid=4&uid=2