Module 1: Introduction to E-Commerce
Flashcard Summary:
1. What is the Internet?
- A global network of interconnected computer networks.
- Transmits data using packet switching and the Internet Protocol (IP).
- Originated from ARPANET, a network developed by the US Department of Defense.
2. What is E-Commerce?
- Business transactions conducted electronically over the internet.
- Involves the exchange of goods, services, and information.
- Examples: online shopping, online banking, online auctions.
3. Advantages of E-Commerce:
- For Customers:
- Flexible shopping hours.
- No waiting queues.
- Global access to products and services.
- Lower prices due to reduced intermediaries.
- For Businesses:
- Expanded market reach.
- Reduced marketing and selling costs.
- Improved customer service.
4. Disadvantages of E-Commerce:
- For Customers:
- Security concerns.
- Dependence on internet access.
- For Businesses:
- Higher logistics costs for physical goods.
- Competition from other online businesses.
5. Types of E-Commerce:
- B2C (Business to Consumer): Businesses selling to individual consumers.
- B2B (Business to Business): Businesses selling to other businesses.
- C2C (Consumer to Consumer): Individuals selling to other individuals.
- G2C (Government to Citizen): Government providing services to citizens.
- G2B (Government to Business): Government providing services to businesses.
6. Fundamental Sales Process:
- Information: Customer searches for products and suppliers.
- Initiation: Customer contacts the supplier.
- Contract Conclusion: Customer places an order, supplier confirms.
- Delivery/Fulfillment: Goods or services are delivered.
- Billing/Invoicing: Invoice is generated and sent to the customer.
- Payment: Customer pays for the goods or services.
- Service/Support: Customer receives support and after-sales service.
7. Technological Elements of E-Commerce:
- TCP/IP Protocol: The core communication protocol for the internet.
- HTTP (Hypertext Transfer Protocol): Used for communication between web browsers and web
servers.
- HTML (Hypertext Markup Language): Used to create web pages.
- XML (Extensible Markup Language): Used for storing and transporting data.
- Middleware: Software that enables communication between applications.
- Platforms: Frameworks that support E-Commerce activities.
- Applications: Software used for specific E-Commerce functions.
8. Web 2.0:
- The current stage of the World Wide Web, characterized by user-generated content and social
media.
- Examples: blogs, social networking services, online communities.
9. Technical and Economic Challenges of E-Commerce:
- Technical: Security concerns, bandwidth availability, integration with existing systems.
- Economic: Establishing an E-Commerce business, competition, infrastructure upgrades,
skilled staff availability.
10. B2C Business:
- Businesses selling to individual consumers.
- Challenges: Pricing, Fulfillment, Payment.
- CRM (Customer Relationship Management) is crucial for managing customer relationships
and improving loyalty.
11. B2C Software Systems:
- Online Shop: Software for businesses to sell products to consumers.
- Procurement Platform: Software for businesses to purchase goods and services from
suppliers.
- CRM (Customer Relationship Management): Software for managing customer relationships.
