M6 - Introduction
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This document provides an introduction to e-commerce. It defines e-commerce as the buying and selling of goods or services over the internet or computer networks. The document then gives a brief history of e-commerce, noting that the first recorded online transactions were in the mid-1990s. It outlines some topics that will be covered, including a short history of e-commerce, companies that use it, benefits, data security, and how to set up an e-commerce business. Examples are given of early adopters in 1994-1995 and the launch of PayPal in 1999 to allow secure online payments. Most major companies and banks now offer e-commerce services. Students are assigned a task to research and present on a business
M6 - Introduction
- 1. E-CommerceM6
- 2. E-CommerceElectronic CommerceCommerce – buying and selling.E-Commerce – the buying and selling of goods or services over the internet or via a computer connection.A modern way of trading. The first example of E-commerce taking place on the internet was only recorded in the mid 1990s.
- 3. What will we be studying?Introduction to E-CommerceA Short History of E-CommerceCompanies that use E-CommerceBenefits of E-CommerceData Integrity and SecurityHow does E-Commerce work?Setting up an E-Commerce Business
- 4. A brief History1994 – Netscape Navigator, an internet browser, is invented. Pizza Hut offers online pizza ordering. The first online bank opens. Cars and bikes are available on the internet.
- 5. 1995 – Amazon is created, an online company selling books, DVDs and CDs. EBay is launched, the first online auction company.
- 6. 1999 – PayPal launched, allowing safe and secure financial transactions to be carried out over the internet.E-Commerce - TodayAlmost all national and international companies offer E-commerce.
- 7. Many companies only offer E-Commerce services.
- 8. Most major banks offer online banking.
- 9. When did you last use E-commerce?
- 10. Can you give me some examples of E-commerce you have used?Types of E-commerceDirect sales – Companies selling their products or services direct to the customer via the net.Online bankingOnline auctions – Bidding against other consumers for products and services.Online media sales – Buy and download music, e-books, movies, TV series, computer software.
- 11. EBay – A studyAmerican Internet CompanyOnline AuctionAuction – Customers bid (offer) money for goods or services. The highest bidder is successful. Online ShoppingAllows people to buy and sell goods and services online all over the world..
- 12. EBay – HistoryFounded in 1995 – known as AuctionWeb.
- 13. First item sold was a broken laser pointer
- 14. 1997 – AuctionWeb changed it’s name to EBay.
- 15. 1997 – EBay began to offer Travel services on the internet.
- 16. 1998 – EBay went public (the company was listed on the Stock Exchange and people could buy and sell shares in EBay)EBay – How does it work?EBay makes a profit by charging sellers a commission on any auction they successfully complete.The commission fee for each item is between 1% and 5%.For example, an item worth $1000 sold on EBay will earn the company somewhere between $10 and $50.There is also a small fee to list items on EBAY, about 1%.
- 17. EBay - PayPalIn 2002 EBay bought the internet banking service company PayPal.PayPal allows payments and money transfers to be carried out through the net.Customers sign up with their email address and bank or credit card details.PayPal automatically debits or credits money on a customers’ account.
- 18. EBayWhat is the most expensive item that has ever been sold on EBay?
- 19. EBayA YachtA bargain...$168,000,000It was purchased by Roman Abramovich, the Russian billionaire owner of Chelsea Football Club.
- 20. Task TodayWe’ve had a look today at EBay. There are thousands of websites that use E-Commerce. For example:www.amazon.comwww.iTunes.comwww.dell.comwww.airasia.comwww.nikestore.comwww.buy.comwww.westernunion.comwww.yahoo.comwww.priceline.comwww.aol.comwww.weloveshopping.comwww.adobe.comwww.rightmove.comwww.play.com
- 21. Task TodayStudy a Business that uses E-Commerce.
- 22. Create a presentation to tell the rest of the class about your business.
- 23. Include:
- 25. What goods or services does the company sell?
- 26. How does the company use E-Commerce?
- 27. How does a customer obtain goods or services using
- 28. Example of an E-Commerce transaction
- 29. History
- 31. Information about the websiteTask TodayA the end of this lesson you will present your work.Every member of the group must speak.I’m looking for professional and well presented work.Remember, this lesson is E-Commerce, so make sure you understand the E-Commerce within your chosen companyHow does the business make money online?What products or services does the business offer online?