Course name: E-commerce

Chapter 1
Overview of
E-commerce
Instructor: Nguyen The Dai Nghia
Email: [email protected]
Phone/Zalo: 0936385487
Introduction
Upon successful completion of this course, students will
be able to:
 Describe characteristics of e-commerce and list all its basic models
 Outline IT infrastructure required for e-commerce
 Explain advantages and disadvantages of different online payment
options
 Discuss common legal, ethical issues in E-Commerce
 Analyse, design an e-commerce system
 Apply the knowledge of online security techniques to protect websites
 Prepare a plan for online maketing
 Plan to start-up an e-commerce business project

Course book:
[1] Kenneth C. Laudon, Carol Guercio Traver, E-commerce 2021:
Business. Technology. Society, (Global Edition), Pearson, 2021

Software:
[1] Haravan omnichannel platform
[2] Wix website builder
Assessment

• On-going assessment (30%): case study, group discussion, group

assignment, group topic presentation, quiz, attendance
• Mid-term assessment (20%): multiple choice test
• Final assessment (50%): group business project
1. Website: 15%
2. Presentation: 15%
3. Report: 20%
• Bonus point for individual (maximum 5%): answer lecturer’s
questions in class
 Learning Objectives
1.1 Understand why it is important to study e-commerce.
1.2 Define e-commerce, understand how e-commerce differs from
e-business
1.3 Identify and describe the unique features of e-commerce
technology and discuss their business significance.
1.4 Describe the major types of e-commerce.
1.5 Understand the evolution of e-commerce from its early years to
today.
1.6 Describe the major themes underlying the study of e-commerce.
1.7 Identify the major academic disciplines contributing to e-
commerce.

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 E-commerce

Chapter 1
Overview of E-commerce

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The First Thirty Seconds
First two decades of e-commerce
Just the beginning
Rapid growth and change
Technologies evolve at exponential rates
Disruptive business change
New opportunities
Why study e-commerce
Understand opportunities and risks
Analyze e-commerce ideas, models, issues

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Everything On Demand: The “Uberization”
of E-commerce
Class Discussion
Have you used Grab or any other on-demand
service companies?
What is the appeal of these companies for
users and providers?
Are there any negative consequences to the
increased use of on-demand services like Grab
and Airbnb?

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 What is E-commerce
 E-commerce:
 The use of the Internet, the Web, and mobile apps and
browsers running on mobile devices to transact
business.
 Or, the digitally enabled commercial transactions
between and among organizations and individuals

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E-Commerce
Digitally enabled commercial transactions between and
among organizations and individuals
E-business:
Digital enabling of transactions and processes within a
firm, involving information systems under firm’s control
Does not include commercial transactions involving an
exchange of value across organizational boundaries

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 The difference between
E-commerce & E-business

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 The difference between
E-commerce & Traditional commerce
Point of distinction E-commerce Traditional commerce

Interaction Indirect interaction between Direct interaction between

buyer and seller through buyer and seller
internet
Suitability For low-value products, Products needed to convince
intangible, digital products customers, high-value
products
Transaction Automatically Manually
processing
Scope Across the global Restricted to a definite area
Accessibility Any time Limited
Cost effectiveness Less expensive More expensive

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Technological Building Blocks Underlying
E-commerce
Internet
World Wide Web
H T M L
Deep Web vs “surface” Web
Mobile platform
Mobile apps

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 Eight unique features of E-commerce
technology

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 Eight unique features of E-commerce
technology
 Ubiquity
 Be available just about everywhere, at all times
 Liberate the market from being restricted to a
physical space and makes a marketspace
 Reduce transaction cost

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 Eight unique features of E-commerce
technology
 Global reach
 Permit commercial transactions to cross cultural,
regional, and national boundaries
 Potential market size = world’s internet users (4,6
billion people in March 2020)

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 Eight unique features of E-commerce
technology
 Universal Standards
 Technical standards for conducting e-commerce
are universal standard –shared by all nations.
 Lower market entry costs for merchants.
 Reduce search cost for consumers.

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 Eight unique features of E-commerce
technology
 Information richness
 Refer to the complexity and content of a message
 Trade-off between richness and reach
 Have the potential to offer more information
richness to a much larger audience.
Ex: Deliver rich message with video and text to
consumers.

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 Eight unique features of E-commerce
technology
 Information density
 Increase information density—the total amount
and quality of information available to all market
participants
 Price & cost transparency
 Enable merchants to engage in price
discrimination

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 Eight unique features of E-commerce
technology
 Interactivity
 Enable two-way communication between merchant
and consumer and among consumers
 Social network and mobile devices help online
merchants to engage customers.

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 Eight unique features of E-commerce
technology
 Personalization/Customization
 Personalization: Target marketing messages to
specific individuals by adjusting the message to a
person’s name, interests, and past purchases
 Customization: Change the delivered product or
service based on a user’s preferences or prior
behavior.

Copyright © 2017 Pearson Education Ltd. Slide 4-20

 Eight unique features of E-commerce
technology
 Social technology
 Allow users to create and share content with a
worldwide community.
 Support social networks
 Change one-to-many model to many-to-many
model of mass communication.

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 Type of E-commerce
 Business-to-Business (B2B):
 Online businesses focus on selling to other
businesses
 2 primary B2B business models: Net
marketplaces and private industrial
networks.

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 Type of E-commerce
 Business-to-Consumer (B2C):
 Online businesses attempt to reach individual
consumers.
 Including purchases of retail goods, travel
services, and online content.
 7 different B2C business models: portals,
online retailers, content providers, transaction
brokers, market creators, service providers, and
community providers.

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 Type of E-commerce
 Customer-to-Customer (C2C):
 Consumers sell to each other with the help of an
online market maker (eBay, Airbnb).
 Customer-to-Business (C2B):
 Consumers provide services or products that
appeal to businesses (Google AdSense,
Agricultural product manufacturer)

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 Type of E-commerce – The new wave
 Mobile E-commerce (M-commerce):
 Use of mobile devices to enable online
transactions (mobile banking, in-app purchase)
 Social E-commerce:
 E-commerce enabled by social networks and
online social relationships
 Local E-commerce:
 Local merchants use a variety of online
marketing techniques to drive local consumers
to their stores.
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Figure 1.7 The Growth of B2B E-commerce in the United States

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Figure 1.5 The Growth of B2C E-commerce in the United States

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Figure 1.8 The Growth of M-commerce in the United States

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E-commerce: A Brief History
1995–2000: Invention
Sale of simple retail goods
Limited bandwidth and media
Euphoric visions of
Friction-free commerce
First-mover advantages
Dot-com crash of 2000

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E-commerce: A Brief History
2001–2006: Consolidation
Emphasis on business-driven approach
Traditional large firms expand presence
Start-up financing shrinks
More complex products and services sold
Growth of search engine advertising
Business web presences expand

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E-commerce: A Brief History
2007–Present: Reinvention
Rapid growth of:
Web 2.0, including online social networks
Mobile platform
Local commerce
On-demand service economy
Entertainment content develops as source of
revenues
Transformation of marketing

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Figure 1.10 Periods in the Development of E-commerce

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Insight on Business: Rocket Internet
Class Discussion
What are the benefits of investing in a company that
Rocket Internet has launched?
Why is Rocket Internet controversial?
Is an incubator the best solution for start-ups to find
funding? Why or why not?

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Understanding E-commerce: Organizing
Themes
Technology:
Development and mastery of digital computing and
communications technology
Business:
New technologies present businesses with new ways
of organizing production and transacting business
Society:
Intellectual property, individual privacy, public
welfare policy

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Academic Disciplines Concerned with
Technology
Technical
Computer science, management science, information
systems

Behavioral
Information systems research, economics,
marketing, management, finance/accounting,
sociology

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