Chapter 9

Click-and-mortar (example of partial EC)

businesses sell products both on Internet and in stores some e-commerce activities but primary business is carried out in the physical world (Examples: Walmart or buying a book from Amazon and shipping it)

Business-to-Business electronic commerce (B2B)

electronic commerce in which both the sellers and the buyers are business organizations comprises of the majority of EC volume. E-commerce: online business selling to other businesses

Domain Tasting

lets registrars profit from the complex money trail of pay-per-click advertising. companies register domain names that are very similar to their competitors' domain names in order to generate traffic from people who misspell Web addresses. Domain tasters exploit this policy by claiming Internet domains for five days at no cost. (ICANN)

reverse auctions

one buyer, usually an organization, wants to purchase a product or a service and buyer posts a request for quotation (RFQ) on its Web site or on a third party site. Prices tend to decrease over time.

brick-and-mortar organizations

purely physical organizations

Mobile commerce

refers to electronic commerce transactions that are conducted in a wireless environment, especially via the Internet Example: using cell phones to shop over the internet

Cybersquatting

refers to the practice of registering or using domain names for the purpose of profiting from the goodwill or the trademark that belongs to someone else

copyright

right to use software not distribute

forward auctions

sellers solicit bids from many potential buyers and prices tend to increase over time Buyers can be individuals or businesses.

Electronic business (e-business)

servicing customers, collaborating with business partners, and performing electronic transactions within an organization

Fraud on the internet

stocks, investments, business opportunities, auctions -setting up fake investments and setting up phantom business opportunities

degree of digitization

the extent to which the commerce has been transformed from physical to digital

business model

the method by which a company generates revenue to sustain itself

Electronic Checks

(e-checks), which are used primarily in B2B, are similar to regular paper checks. customer emails encrypted electronic check to seller

6 types of e-commerce

- Business-to-consumer (B2C) E-commerce: online businesses selling to individual consumers - Business-to-Business (B2B) E-commerce: online business selling to other businesses - Consumer-to-Consumer (C2C) E-commerce: consumers selling to other consumers - Mobile E-commerce (M-commerce): use of mobile devices to enable online transactions - Social E-commerce: e-commerce enabled by social networks and online social relationships - Local E-commerce: e-commerce that is focused on engaging the consumer based on his or her current geographic location

Ethical Issues

- Easier to store and transfer personal data comes at security risk - Tracking individual's activity - EC eliminates jobs

Major E-commerce mechanisms

- Electronic Catalogs - Electronic Auctions - E-storefronts - Emails - E-marketplaces

Thumbtack

- helps create efficiencies in the local commerce marketplace -Thumbtack divides jobs into 4 categories Home improvement Event Services Instruction Wellness -Problems: attracting customers and payment

Smart Cards

-Contain a chip that can store a considerable amount of information and are multipurpose -Can be used as a debit card, credit card, or a stored-value money card

Legal and ethical Issues specific to E-Commerce

-Fraud on the Internet -Domain Names -Cybersquatting -Taxes and Other Fees -Copyright Issues since buyers and sellers dont know each other. - Problems like virtual bank disappearing, stock prices being manipulated

Taxes and Other Fees

Federal, state, and local authorities are now scrambling to create some type of taxation policy for e-business within their jurisdictions.

Business-to-consumer electronic commerce (B2C)

Sellers are organizations Buyers are individuals E-commerce: online businesses selling to individual consumers

How e-credit works

1. Customer -> Merchant 2. Merchant -> Clearing House 3. Clearing House -> Card Issuer Bank(server) 4. Card Issuer Bank(server) -> Clearing House 5. Clearing House -> Merchant 6. Merchant -> Customer 7. Card Issuer Bank(server)-> Merchant's Bank 8. Card Issuer Bank(server) -> Customer 9. Merchant's Bank -> Merchant

Digital Wallet

Application used for making financial transactions Example: Paypal, Apple pay

Benefits and limitations of e-commerce

Benefits - National and international markets more accessible by lowering costs of processing, distributing, and retrieving information. - Customers can access a vast number of products and services -ability to easily deliver information, services and products to people in cities, rural areas, and developing countries. Limitations - lack of universally accepted security measures - telecommunications bandwidth is insufficent and accessing the web is expensive (nontechnolgical issues) - perceptions that EC is insecure, unresolved legal issues and lack of critical mass of sellers and buyers

Consumer-to-consumer electronic commerce

Electronic commerce in which both the buyer and the seller are individuals (not businesses). Examples: auctions, eBay and classified ads like craigslist E-commerce: consumers selling to other consumers

virtual (pure-play) organizations

Organizations that conduct their business activities solely online. (Examples: Buying e-book from amazon)

electronic storefront

The Web site of a single company, with its own Internet address, at which orders can be placed. Closely associated to B2C

electronic marketplace

a central, virtual market space on the Web where many buyers and many sellers can conduct e-commerce and e-business activities. (B2B)

Bitcoin

a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

virtual credit cards

allow customers to shop online and can be used only once in order to thwart criminals by using a different, random card number every time you shop online.

stored-value money cards

allow you to store a fixed amount of prepaid money and then spend it as necessary and each time you use the card, the amount is reduced by the amount you spent.

Electronic Cards

allows customers to charge online payments to their credit card account. primarily use B2C examples: electronic credit cards,virtual credit cards, smart cards

Business-to-employee (B2E)

an organization uses EC internally to provide information and services to its employees. Examples: employees buying insurance, tickets to events, travel packages on corporate intranet electronic corporate stores that sells company products to employees

Purchasing Cards

are the B2B equivalent of electronic credit cards and in some countries, purchasing cards are the primary form of payment between companies.

E-government

the use of electronic commerce to deliver information and public services to citizens, (called government-to-citizen or G2C EC) and to business partners, and suppliers of government entities (called government-to-business or G2B EC) and those working in the public sector also an efficient way of conducting business transactions with citizens and businesses and within governments themselves. Makes public services more effective

Domain Names

unique names which identify Internet sites and businesses delta and delta faucet example