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E-commerce presentation

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Georgina Draycott

on 16 December 2012

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Transcript of E-commerce presentation

What is e-commerce?? E-commerce is "a term for any type of business, or commercial transaction, that involves the transfer of information across the Internet. It covers a range of different types of businesses, from consumer based retail sites, through auction or music sites, to business exchanges trading goods and services between corporations. It is currently one of the most important aspects of the Internet to emerge."
http://www.networksolutions.com/education/what-is-ecommerce/ [Accessed 16/11/2012] Use of technology within the e-commerce environment - Technology is essential for the e-commerce environment as it allows you to analyse data in more depth and detail.
- The better the technology, the more effective the supply chain.
- Technology is used to ensure the supply chain flows well. Nature and form of business within the online environment - E-commerce is quickly becoming a vital part of business.
- Online shopping is becoming more popular than people using shops on the high street.
- If a company doesn't have a website, this may put potential customers off using that company as the business is not up to date and that may reflect on their sales techniques and products as they might be out of date too. Dynamic business models Dynamic business models are a tool used in e-commerce to generate a customer base, they do not necessarily generate more income at first.
A few examples of dynamic business models
- Freemium business models.

- Multi-sided platform models

- Long tail business models Impact of dynamic business models on traditional business models Dynamic business models are having a big impact on the more traditional business models as they are more up to date with modern technology and usually offer something traditional business models don't such as the option to try limited services or to pay for full services on a website (freemium business model) or allowing customers easier access to niche products through a website dedicated specifically to that product (long tail business model). Revenue models Companies that are successful have multiple revenue models, have multiple streams of revenue. The revenue model is different depending on what type of customer you are (buyer or seller).
There are three main revenue business models:
- Pay per view access,

- CPM (cost per mille or thousand),

- CPC (cost per click), Impact of revenue models on traditional business models Revenue models are having an impact on more traditional business models as they have found a way to gain revenue from information rather than having to produce and sell a physical product. This benefits the business because there will not be a supply chain, or there will be a very limited supply chain for that product or information. Revenue business models also give the owner of a website the ability to sell space on the website to other businesses for advertisement. An example of this is the million dollar website where Alex Tew had a website with space for 1 million adverts, he sold each of these for $1 and named his website the million dollar website. This was a very simple way for him to earn 1 million dollars. Characteristics of technology in the e-commerce environment -The more people we have in our supply chain, the more expensive that product becomes.
- The better the technology within a business, the supply chain will be faster and more responsive.
- Technology enhances the supply chain as it allows the different parts of the chain to communicate. How do these allow us to develop unique business opportunities? - This advance in technology allows business owners to develop new business opportunities as customers can now order online.
- Another way technology is allowing businesses to develop new opportunities is the way customers can call a business through skype for free which may encourage customers to contact businesses with queries.
- Customers can also track their orders online which makes the supply chain more interactive with the customers. References - NETWORK SOLUTIONS (N.D) What is e-commerce? [WWW] Available from: http://www.networksolutions.com/education/what-is-ecommerce/ [Accessed 16/11/2012]
- http://www.milliondollarhomepage.com/ [Accessed 16/11/2012] Critically analyse and discuss the nature and form of business within the online environment. Identify the impact of dynamic business and revenue models on traditional business models. What are the characteristics of technology that allow businesses to develop clear, distinct, online and unique opportunities?
E-commerce (Abdul Jabbar)
Georgina Draycott
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