08 - E and M Commerce Flashcards
Electronic Commerce
Conducting business activities electronically over computer networks.
Distribution Buying Selling Marketing Servicing products or services
B2B, B2C or C2C
Key differences on pg 360
B2B
All participants are organizations
Buy-side and sell-side support the organization's value chain and help the organization provide: Lower prices Better service Higher quality Uniqueness of product and service
Cut resupply times and costs.
2009 census
B2B $3.8 trillion or 13x B2C revenue
B2C $292 billion
Grainger:
MRO selling nearly 1mil items online
25% to become 40% online.
Buy-side
Purchase good and services Identify suppliers and products Negotiating prices and terms Ordering and tracking Steering buyers to preferred suppliers and products
Sell-side
Enabling online purchase
Provide information to elevate goods
Encourage sales and generate leads from potential customers
Providing a portal of interest for customers.
Enabling interaction among a community of customers
B2C
Customers deal directly an organization and avoid intermediaries
Global
2015 sales growth estimated to $700-$950 billion
US 2011 $48.2 billion for Q3
About 4.6% of retail sales
Disintermediation
The elimination of intermediate organizations between the producer and the consumer.
B2C sites
eBay Shopping.com Google Froogle Shopzilla Price-Grabber Yahoo! Shopping Excite
Social Commerce
Offering a section on a Web site were potential customers can see only those items bought and reviewed by others.
Walmart Shopycat
Monitors your friend’s FB content to provide you gift buying ideas.
Web-Influenced sales
When research is done online prior to purchase in a brick and mortar location.
Globally exceeds 1 trillion annually
Growing at billions per year in US
Page 359 largest B2C retailers in US 2010
Amazon started in 1995
Tax avoidance
1992 Supreme Court ruling
Retailers not required to collect sales tax in states where they lack a physical location.
Customers are supposed to report but rarely do.
$23 billion in lost tax revenue annually.
C2C
Electronic transfers between consumers using a third party to facilitate the process.
eBay founded 1995
Bidzcom, Craigslist, eBid, ePier
Ividfree, Kijiji, Ubid and Tradus
Hurt newspapers but created opportunities for people to make a living in Internet auction sales.
e-Government
The use of information and communications technology to simplify the sharing of information, speed formerly paper based processes and improve the relationship between citizens and government.
Includes:
G2C
G2B
G2G
G2C
GSA auction sites offer old or overstock goods and equipment.
Service of submitting tax or license renewal
Purchase postage and apply for student loans
G2B
Help businesses identify and bid on reverse auctions for govt contracts.
Business.gov provides information about laws and regulations
Buyers.gov helps gov agencies buy IS products through reverse auction process.
FedBizOpps.gov where gov posts procurement opportunities for businesses to bid on.
G2G
Support transactions for example between fed and state.
Government to Government Services online - s Web site to report population changes and criminal activity and amount of aid received to Social Security Administration.
State and Local Government on the Net
www.statelocalgov.net
Provides a directory of thousands of state and local agencies.
m-commerce
The volume of mobile commerce in the U.S. By 2016 is expected to amount to roughly 7% of total U.S. B2C e-commerce.
Relies on the use of mobile, wireless devices such as cell/smart phones to place orders and conduct business.
Handset mfg - Ericson, Motorola, Nokia and Qualcom
Carriers - AT&T, Cingular, Sprint/Nextel and Verizon
Work together to dev. and provide tech
ICANN
Internet Corporation for Assigned Names and Numbers
Created .mobi domain to attract mobile used to the Web
.mobi domain administered by
mTLD Top Level Domain Ltd.
Dublin, Ireland
To ensure speed, efficiency and effectiveness for handset users.
m-commerce development
Much slower in NA than EU & JP
- Fragmented infrastructure
- CC payments rather than bank trans
- Many Americans with mobile data services
2016 forecast US e-commerce to reach $31 bil but that is only 7% of global B2C sales.
Still expect broader Web-Influenced sales as Americans embrace technology.
m-commerce Web sites
Because of clumsiness of mobile browsing on standard format sites and security concerns, some retailers are creating specialized sites for mobile users.
Highly rated m-commerce sites pg 363
Send shopping question to @IMshopping Twitter and receive tweet with URL with options gathered by live expert.
e and m commerce advantages
Reduced cost of business
Speed the flow of goods and information
Increase the accuracy of order processing and order fulfillment
Improve level of customer service
Speed and Flow of
Goods and Information
Since connections are already established, info can flow easily, directly and rapidly.
Bypass Lane app allows spectators to order concessions to be delivered to their seat or picked up at window. Teams pay a trans fee but sales increase 30-40%
Cost Reduction Impact
Removing labor and steps speeds order process allowing more transactions to take place with more accuracy.
Equa-Ship aggregates small business shipments to get volume freight discounts at slightly slower delivery.
Increased Accuracy
Since customers enter their order directly, supplier clerical errors are eliminated from process.
Improved customer service
Providing near realtime logistics status improves experience and loyalty.
Multistage Model
for
e-commerce
A successful solution must address all customer experience stages in the sales life cycle.
Search and Identification Selection and Negotiation Purchase Delivery After Sales Service
Search and Identification
Search by keyword or supplier SKU
Compare costs among component options
Calculate discounts based on qty and account contract tier pricing
Estimate freight cost/speed trade off options
Provide live-chat online purchase support
Selection and Negotiation
Many sites are take-it-or-leave-it oriented.
Buyers can ask for formal quote RFQ to tie to a formal OO or submit for internal approval.
Purchasing
Buyer releasing the order.
Seller automatically billing customer on pre-established terms.
One-off buys typically involve entering payment and delivery information. Some retailers require setting up an account to capture customer information to be used for targeted marketing. Can use CC or electronic cash.
Delivery
Some product and services can be delivered over the net.
Some logistics co’s have developed solutions to off-load management and tracking from retailer. Some logistics providers have absorbed DC responsibility from retailers. FedEx stocks HP printers and fulfills their orders.
Logistics provider notifies customer of status and retailer of stock status.
Returns are also streamlined.
