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ELEVENTH EDITION ELECTRONIC COMMERCE GARY P. SCHNEIDER Introduction to Electronic Commerce Chapter 1 1 © Cengage Learning 2015

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Introduction to electronic commerce, definition, and categories

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ELEVENTH EDITION

ELECTRONIC COMMERCE

GARY P. SCHNEIDER

Introduction to Electronic Commerce

Chapter 1

1© Cengage Learning 2015

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Learning Objectives

What is electronic commerce / electronic business

Types of eCommerce

Business to consumers (B2C)

Consumers to consumers (C2C)

Business to business (B2B)

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Electronic Commerce

• Digital commercial transaction between organization and individuals– Digital is use of internet and world wide wed (www)– Commercial transaction is the exchange of value for

merchant’s good or service

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Electronic Commerce and Electronic Business

• Electronic commerce– Shopping on the Web– Businesses trading with other businesses– Internal company processes– Broader term: electronic business (e-business)– Includes all business activities using Internet

technologies• Internet and World Wide Web (Web)• Wireless transmissions on mobile telephone network

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Business Processes

• Examples of business processes– Purchasing raw materials or goods for resale– Converting materials and labor into finished goods– Managing transportation and logistics– Hiring and training employees– Managing business finances

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FIGURE 1-9 Value chain for a strategic business unit© Cengage Learning 2015

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Electronic Commerce

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Electronic Commerce

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Categories of Electronic Commerce

• Business-to-consumer (B2C) • Consumer shopping on the Web

– Example: customer buys phone from Verizon

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Categories of Electronic Commerce

• Consumer-to-consumer (C2C)– Individuals buying and selling among themselves

• Web auction site– C2C sales included in B2C category

• Seller acts as a business (for transaction purposes)– Example: customer sells old phone to another

customer

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Categories of Electronic Commerce

• Business-to-business (B2B): – Transactions conducted between Web businesses,

like between a manufacturer and a wholesaler, or between a wholesaler and a retailer.

– Supply management (procurement) departments• Negotiate purchase transactions with suppliers

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FIGURE 1-2 Electronic commerce categories© Cengage Learning 2015