What is E-Commerce?
MKT-EM-2
Spring 2014
McEachern High School
What is E-Commerce?
Electronic Commerce
Business to Consumer (B2C)
Business to Business (B2B)
Consumer to Consumer (C2C)
Doing business electronically - by
internet, telephone, cell phone, etc.
June 2009
Memory Reed Harris County High
School
Business to Consumer E-Commerce
Consumers purchasing products via the
web.
Go on a search engine (Google, Yahoo,
etc.)
Find what is wanted
Put in credit card #
Open package in a few days
Online finance, tracking packages, etc.
June 2009
Memory Reed Harris County High
School
Business to Business E-Commerce
Electronic Data Interchange (EDI)
Computers exchanging business
information between businesses that do
business together
Electronic Catalogs
Electronic Payment Systems
Intranets (closed networks between
groups or in a company)
June 2009
Memory Reed Harris County High
School
Consumer to Consumer E-Commerce
Consumers sell to other consumers via
the internet
Consumers sell via auction sites such as
E-bay
Consumers sell used products via Ecommerce sites such as Amazon.com
Consumers sell via “online classifieds”
sites such as Craigslist.com
June 2009
Memory Reed Harris County High
School
Advantages & Disadvantages of
E-commerce
Advantages
Larger customer base
Cheaper, faster and more convenient messaging
Real-time information
Disadvantages
Security - data could be intercepted by others
Internet problems can keep your website from
working properly
June 2009
Memory Reed Harris County High
School
How does it work?
Consumer finds the merchant’s website.
He/she finds something to buy
Moves to the online transaction server
At this point most information is encrypted
Places order and moves through a private
gateway to a Processing Network where the
acquiring banks complete or deny the
transaction
This usually takes less than 10 seconds.
Secure Socket Layer technology is safe
June 2009
Memory Reed Harris County High
School
Secure Socket Layer Technology
Enables encryption of sensitive
information during online transactions
Contains unique, authenticated
information about the certificate holder
A Certificate Authority verifies the
identity of the certificate owner when it
is issued.
June 2009
Memory Reed Harris County High
School
When do you need SSL?
You have an online store or accept online
orders and credit cards
You offer a login or sign in on your site
You process sensitive data such as address,
birth date, license, or ID numbers
You need to comply with privacy and security
requirements
You value privacy and expect others to
trust you.
June 2009
Memory Reed Harris County High
School
How Encryption Works
An SSL Certificate encrypts data during
transmission (scrambles data) to cover
the data so others can’t read it.
Each SSL Certificate has a public key
and a private key
Public is used to encrypt information
Private is used to decipher it
June 2009
Memory Reed Harris County High
School
It’s All About Security!
When a web browser points to a secure
domain, the SSL handshake authenticates
the server (web site) and the client (web
browser)
A unique session key is established and
transmission can begin.
True 128-bit SSL Certificates enable every
site visitor to experience the strongest SSL
encryption available to them.
June 2009
Memory Reed Harris County High
School
SSL Authentication
SSL Certificates are created for particular servers in
specific domains for a verified business entity.
When the SSL handshake occurs, the browser
requires authentication information from the server.
Clicking on the closed padlock or certain SSL trust
marks, the web site visitor sees the authenticated
organizations name.
If information doesn’t match or the certificate is
expired, the browser displays an error message or
warning.
June 2009
Memory Reed Harris County High
School
Why Do I Care?
Like a passport or driver’s license, an SSL
Certificate is issued by a trusted source,
known as a Certificate Authority (CA). Many
CAs simply verify the domain name and issue
the certificate.
Some verify the existence of the business,
the ownership of the domain name and the
authority to apply for the certificate.
June 2009
Memory Reed Harris County High
School
E-commerce Benefits
No barriers of time or distance.
Direct cost-of-sale for an order taken from a
web site is lower than through traditional
means
Practically eliminates processing errors and is
faster and more convenient for customers
Ideal for niche products
Cheapest means of doing business
Improves competitive position of businesses
June 2009
Memory Reed Harris County High
School
E-commerce Benefits (Cont.)
Reduces buyers’ decision-making time.
Better buyer decisions
Less time is spent in resolving invoice
and other discrepancies.
Increased opportunities for buying
alternative products
Reduced delivery time, labor costs and
costs of business
June 2009
Memory Reed Harris County High
School
Website Development
Online storefront
Smooth flow of text that leads the
customer to the appropriate pages
Enough pages to keep interest
Keyword rich and key phrase rich
Multi-browser capability
All pages in site must be linked well and
need text links rather than graphic links
June 2009
Memory Reed Harris County High
School
Website Development (Cont.)
Include “Alt” attributes on images to boost
rankings on search engines.
Have effective images, images sell, some
people have poor English literacy, some
people are in a rush and don’t want to take
time to read.
Must have absolute security.
Proper payment gateway must be in place.
June 2009
Memory Reed Harris County High
School
Website Development (cont.)
Post photos of your products
Publish monthly newsletter
Sell online
Have people e-mail you
Obtain info. about your online visitors
Rule of thumb: 80% education, 20%
marketing
Make it intuitive, simple to navigate
June 2009
Memory Reed Harris County High
School
Website Development (cont.)
Give each page a short, unique, descriptive
title
Use bulleted lists to make it easy to catch the
key points and benefits
Submit your site to many (all) search engines
Trade reciprocal links with other sites
Swap or buy banner advertisements on other
sites
June 2009
Memory Reed Harris County High
School
What is E-business?
It is the powerful business environment
that is created when you connect critical
business systems directly to customers,
employees, vendors, and business
partners, using Intranets, Extranets, Ecommerce technologies, collaborative
applications, and the Web.
June 2009
Memory Reed Harris County High
School
E-Commerce vs. E-Business
E-Commerce is buying and selling via
electronic means.
E-Business is much more, it involves all
parts of the business.
E-Marketing, Customer Service,
customer education, Logistics
June 2009
Memory Reed Harris County High
School
Works Cited
http://www.ecommerceprogram.com/def
ault.asp
http://www.goecart.com/ecommerce_eb
usiness_solutions.asp#website
http://www.verisign.com/ssl/sslinformation
June 2009
Memory Reed Harris County High
School