E-Commmerce

ACC3619 Business Information Systems 1

│LECTURE 10│ │ E-commerce I - Business Models and Concepts

Outline Unique features of E-commerce and revenue models B2C business models B2B business models Benefits and limitation of E-commerce

Learning Objectives Students should be able to: Appreciate the unique features of E-commerce Understand the different types of E-commerce business models Understand the benefit and limitation of E-commerce.

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E-commerce Defined It is the process of buying, selling, transferring, or exchanging products/services/information via computer networks, including the internet. The process includes all transactions mediated by digital technology. Commercial transactions involve the exchange of value across organizational or individual boundaries in return for products or services.

Week 10

© Vocational Training Council, Hong Kong

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1.1 Advantages of E-commerce Technology and Their Significance • • • • • • • It is ubiquitous (available everywhere, all the time) It offers global reach (across cultural/national boundaries) It operates according to universal standards (lowers market entry for merchants and search costs for consumers) It provides information richness - video, audio and text messages are possible (more powerful selling environment) It is interactive (can simulate face-to-face experience, but on global scale) It increases information density (amount and quality of information available to all market participants) It permits personalization/customization

1.2 Types of E-commerce As classified by the nature of relationship among participants. • Business-to-Consumer (B2C) It refers to the selling of products/services by businesses to individual consumers. Many types of business models within this category including online retailers, content providers, portals, transaction brokers, service providers, market creators and community providers. In 2005, total B2C revenues were about $140 - $170 billion. •...