IS E-Commerce

Social Search

Enabling an environment where consumers can ask their friends advice. Amazon's social recommender system can use can use your facebook social profile to recommend products based on your interests.

Portal

Entry points to the internet that users use as homepage. Contain an integrated package of content and service for no charge. Web portals generate revenue through ads because of the large audience. EX>Facebook, Yahoo, AOL, MSN)

Co-location

A kind of web site hosting in which firms purchase or rent a physical server computer at a hosting company's location in order to operate a web site

Social Technology

Allows users, non-experts, to distribute content on a large scale. Provides unique many-to-many models of mass communications

B2B E-Commerce

Automation of processes between businesses would save consumers money and firm could allocate resources more efficiently. Electronic data interchange enables computers to computer exchange between firms.

Ubiquity

Available anywhere, at all times. Marketspace, is a marketplace extended beyond a tangible place. Reduces transaction costs.

Electronic data interchange

B2B processes are exchanged between computers of different firms. Transactions are automatically transmitted from one information system to another through a network, eliminate printing and holding costs of paper at one end and inputting data in the other.

Richness

Complexity and content of information. Internet allows for a comprehensive message without reducing reach.

Subscription Revenue Model

Content providers often use this model, charges user periodically to ensure ongoing services of the software or service. Netflix, Hulu, Spotify, Match.com

Network Notification

Creating an environment where consumers can share their approval of products, services or content or share their geo-location. Twitter tweets and followers is an example.

Collaborative shopping

Creating an environment where consumers can share their shopping experiences. Friends can chat about brands, products or services

Free/Fremium Model

Firms offer basic services or content but charge more for a "premium" account. Attract huge audiences for free and then charge the dedicated users.

Sales Revenue Model

Generate revenues through selling a product or service Retailers: Amazon.com, Gap.com, LLBean.com Content Providers: Itunes, Microsoft Office

Location Services

Geosocial services, geo-advertising, geo-information services. 74% of smartphone users use location services. allowed by GPS usage.

Crowdsourcing

Netflix asked consumers to create a way to improve their movie suggestions, offered $1 million dollar prize. The turnout was amazing, and improved thier business significantly.

Service Provider

No longer a physical product we are selling. Cloud computing sites, G-mail, other SAAS

Universal Standards

Same rules and tech govern the entire body of the internet. Greatly lower market entry costs due to centralization.

Transaction Fee Model

Sell products or services then take a small fee per each transaction E-trade, Ebay

Global Reach

Shopping online allows for an extended marketplace, beyond local awareness

Net Marketplaces

e-hubs, provide a single, digital marketplace based on internet technology for many different buyers and sellers. They are industry owned or operate as independent intermediaries between buyers and sellers.

Dynamic Pricing

price of a product varies depending on demand characteristics of the customer, time of day, supply situation for seller, prior website visits

Geoinformation services

shows you products or prices, or deals that are locally exclusive

Geosocial service

tell where others in your network are

Indirect Goods

All other goods not directly involved in production, such as office supplies or products for maintenance

Disintermediation

Allowed through e-commerce, removes an organizations or business process layers that are responsible for creating intermediate steps in the value chain

Types of E-Commerce

Business to Consumer (B2C), Business to Business (B2B), Consumer to Consumer (C2C)

Content Provider

Charges to stream or download intellectual property such as music, movies, tv, software, ITunes, Netflix, Hulu, Spotify

E-Commerce Revenue Models

Describes how a firm will earn revenue, generate profits and produce a superior return on investment. Advertising Revenue Model, Sales Revenue, Subscription, Free/Fremium, Transaction Fee, Affiliate Revenue Model

Information Density

E-commerce allows for readily available information for both customers and merchants. Price transparency, cost transparency, price discrimination.

Digital Social Graph

Mapping of all significant online social relationships. It is synonymous with the idea of a "social network" used to describe offline relationships. Preliminary map of users social networks.

E-Commerce Marketing

Marketing is the most affected business operation by the internet

Exchanges

Marketplace independently owned by a third party. Net marketplace that connects thousands of suppliers and buyers. ALIBABA

Personalization/Customization

Merchants can target their marketing messages to specific individuals by adjusting the message to a person's clickstream behavior, name, interests and past purchases. Also allows for changes in a product or service based on specific customer preferences

Transaction Broker

Online Travel sites (Expedia.com, Kayak.com) or financial servides (E-trade, TDameritrade). Reduced price of traditional services.

Prediction market

Online betting with peers, users can make predictions or buy shares of them

Market Creator

Online marketplaces developed for users in which buyers and sellers are connected. EBAY, craigslist

Advertising Revenue Model

Only works if website can generate a large numbers of visitors consistently. Most widely used model in e-commerce. Price Based on large viewership, specialization or "stickiness"

E-Commerce Business Models

Portal, E-tailer, Content Provider, Transaction Broker, Market Creator, Service Provider, Community Provider

Digital Goods

Products that can be purchased online such as music, movies, software, newspapers, books, games. Available though digital streams or downloads. Has no variable costs essentially.

Procurement

Purchasing goods and sourcing them, negotiating with supplies, paying for good, and making delivery arrangements. Can communicate with suppliers via internet when finding the lowest cost supplier, search online, catalogs of supplier products, negotiate, place orders, make payment and arrange transportation/

Behavioral Targeting

Refers to tracking clickstreams of potential consumers on thousands of websites for the purpose of understanding their interests and intentions, and exposing them to ads that are uniquely suited to their behavior. Can be considered an invasion of privacy.

Long-tail marketing

Strategy that allows marketers to find consumers for products where demand is low. Allows firms to find niche spread out markets. I.e. Independent music, Netflix indie movies

Wisdom of Crowds

Theory that creating sites with a large numbers of people can make better decisions than representatives or individuals. Can use them to crowdsouce or prediction

Interactivity

Two-way communication between merchant and customer. Allows almost "face-to-face" communication

E-Commerce Advantages

Ubiquity, Global Reach, Universal Standards, Richness, Interactivity, Information Density, Personalization/Customization, Social Technology

Private Industrial Networks (Private Exchange)

Using a secure website to link with suppliers and other key partners. Network is owned by the buyers, and permits the firms and designated suppliers, distributors and partners to share product design and development, marketing, production schedule, inventory management, and unstructured communication.

E-tailer

Varied set of merchants across the internet. Convenient, low-cost, 24/7. EX: Amazon, Alibaba, Bluenile

Social Sign on

Websites allows users to sign to sign into their sites through other social network pages on facebook or twitter. this allows these websites to receive valuable info about individual networks of consumers

Affiliate Revenue Model

Websites that steer users to other websites hoping they will make a purchase. They receive a kickback from these retailers in return for their correct direction of traffic. *Yelp, Epinions

Information Asymetry

When one party in a transaction has more information ,that is important for the transaction, than the other party

Community Provider

World of warcraft, Facebook, Google +, Tumblr, LinkedIn

Geo-advertising Services

allows businesses to target you based on your location

Direct Goods

components used in production process