lecture-1.pptx

E-Commerce Applications
Development
Introduction
Week 1

• Gain good understanding of how Ecommerce works, need of online business,
Other benefits and features.
• Gain intuitive and quantitative understanding of Ecommerce business models,
differences, benefits of each model and how the behavior of each model can be used
by an organization to improve sales .
• The fundamental components of an online business framework.
– Website Interface/ User experience
– Products catalogue
– Wishlist
– Cart options
– Order products
– Payments methods
– Customer feedback
• Learn different technical aspects required for development of ecommerce platform.
Course Outcomes

Quiz/ Assignment Policy
• Quizzes will be announced/unannounced.
• There will be multiple assignments, individual and
group wise.

Textbook/Reference
book
• Textbooks:
– PHP 5 E-commerce Development by Michael Peacock
– Electronic commerce by Gary Schneider
– E-business and E-commerce by Henrik Stormer

Topics to be covered
• Introduction
• Defining the term
• History, from Brick ‘N Mortar to online stores.
• Business Models and their importance
1. Business to Business B2B
2. Business to Consumer B2C
3. Consumer to Consumer C2C
4. Consumer to Business C2B
5. Intra-business Ecommerce
6. Non-Profit Ecommerce.
• Need of business models
• E-Commerce Software services

Defining the term
• E commerce : Electronic commerce,
commerce alone means
“buying and selling”
Simply put, Electronic commerce is just normal
trading or transaction that is performed using
electronic means.

Usually dictionary defines ecommerce as:
“It is a process of buying and selling or
exchanging of products ,services and information
via computer networks including the internet.”
Now it is important to note that ecommerce not only
means exchanging of products but it also includes
services and information.
We will briefly discuss a few examples to make
things clear.
Definition (cont..)

Definition (cont..)
• Exchange of products:
– Online marketplace like Amazon, flipkart, daraz etc
• Exchange of Services:
– websites like UpWork, TaskRabbit, Handyman etc
• Exchange of Information:
– Usually non-profit organizations like online government
portals, Ebanking etc

Ecommerce Business Models
There are 6 types of E-commerce business models:
1. Business to Business B2B
2. Business to Consumer B2C
3. Consumer to Consumer C2C
4. Consumer to Business C2B
5. Intra-business Ecommerce
6. Non-Profit Ecommerce

1. Business to Business B2B:
– Transactions that take place between two
organizations/ companies or industries.
– No individuals are involved directly.
Example:
If a Mobile Chip manufacturing company performs
transaction with another company that manufactures
mobile cameras.

1. Business to Business B2B:

2. Business to Consumer B2C:
– Transactions with individual customers/ end users. In
this model, a business sells its product directly to a
customer.
– Seller : organization
– Buyer : individual customer /consumer
Example:
Typical scenario at online shopping websites like Amazon
or Daraz, where a consumer buys products.

2. Business to Consumer B2C:

3. Consumer to Consumer C2C:
– Transactions that take place between two consumers.
– One customer sells an item or service directly to other
customer.
– Some organizations can play a role of intermediary
(third party), but they are not involved directly.
– Seller can set the price of his product or service and the
buyer makes purchase.
Example:
Classified advertisements, websites like PakWheels etc.

3. Consumer to Consumer C2C:

4. Consumer to Business C2B :
– Individuals /consumers sell their products or services to
organizations / companies.
Seller : Individual Customer
Buyer : Company / Organization
Example:
Online websites like foodpanda, where a single customer
can sell bakery items or food products to companies or
bakeries.

4. Consumer to Business C2B :

5. Intra-business Ecommerce :
– Exchange of services or products within an
organization/ company.
– Seller : a department A of a company
– Buyer : another department B of the same company
Example:
– Like audit team of a company head office provides
services to other branch offices.
– Another example is the employees training sessions
within an organization.

6. Non-Profit E-Commerce :
This type of business model is mostly used by non-profit
organizations like religious, social or welfare
organizations.
Their main aim is to provide services for betterment of
people in society.
Training institutes developed by government and
universities, Research agencies etc
Example:
Organizations like DigiSkills,

6. Non-Profit E-Commerce :

Now Why do we classify E- Commerce
models?
What is the need to know any
business type?

 And answer is that we (individual/company) need to
know our online business.
 Any organization and company should know what type
of business they are doing,
 These business models develop marketing standards
and it facilitates in developing legal policies for each
type of business models.
 Each business model has its own policies, rules and
regulations either imposed by government ,courts
trading companies.
 (For example legal notices and copyrights claims vary in
different models)

Advantages of Ecommerce
Let us discuss some advantages of Ecommerce,
 Low financial start-up cost:
One of the major benefits is that ecommerce requires low
initial financial cost to start and run a business.
 Business beyond time barrier:
Another important benefit is that in ecommerce business,
there is no time restriction and therefore online business can
run 24 hours a day and 7 days a week. This means that a
person can easily purchase during daytime or even at midnight.
Similarly it goes for freedom of region restriction. A person
living anywhere can make purchase while sitting in his house at
any time.

Advantages of Ecommerce
 Business beyond boundaries:
It is beneficial for both buyer and seller. A seller can sell products
24/7 to customers spread across country or even go internationally.
Similarly a customer can purchase a product while sitting in his home
at any time.
 Easy to showcase bestsellers:
Ecommerce easily helps in showcasing best selling products or
new users. A company with better User Experience of their website
can take advantage of so many related strategies.
 Easier to scale online business:
A seller can easily expand his business by just increasing budget
on marketing, adding more products to list and reaching more
potential customers.

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