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Introduction to E-Commerce - Chapter 1 pt. 2

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Ian Neblett

on 4 July 2013

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Transcript of Introduction to E-Commerce - Chapter 1 pt. 2

We looked at ...
Types of E-Commerce
trends in e-commerce and social e-commerce
e-commerce vs e-business
features/benefits of e-commerce
web 1.0 and web 2.0
Mobile Commerce
most common
2011 - $310 bn
Largest form of e-commerce
3.3 Trillion transactions in US
Huge potential
consumers sell to each other
2011 - $80 bn
users share files
no intermediary required
use of wireless device for transactions
lets that a closer look at b2c ...
Are there potential limitations with B2C?
Expensive technology
You need special skills
People like traditional ways
No PCs, Cells, or TV services is some places
lets take a closer look at b2b ...
10 times the size of b2c
2015 projected to be about $4.4 tr.

Fiction-Free Commerce
First Mover
Network Effect
Write a definition you can understand within your groups (15 min)
Has E-commerce been a success or a failure?
Friction Free?
sometimes are prices lower but sometimes sold below cost
sometimes prices are higher than in-store because of shipping
´hit and run´and ´bait and switch´pricing
Are transactions efficient (as expected)?
overall transaction cost remains high
customers still have many questions
questions send people to the store or to the phone
Opportunities Created?
Middlemen were able to transfrom
how? bringing info, products, services into portals and search engines
i.e. Yahoo, MSN, and Amazon
First Mover Advantage?
´fast-follower´firms established better support systems
most - out of business

The ´e´in E-Commerce does not mean ´Easy´
What does the future hold for E-commerce?
technology will continue to grow
prices will rise to cover costs
margins will rise and mirror typical retailers
players will change
number of successful pure OLC will remain small
Regulations will continue to grow
Chapter 1 Homework:
In your own words
- Describe the 3 major themes underlying the study of e-commerce.

2. Define ¨Social E-Commerce¨ and describe why it is a new form of advertising, search, and commerce?

3. Search the Web for an example of each of the five major types of e-commerce described in Section 1.1. Create an electronic presentation, and explain why it fits into one of the five types of e-commerce.

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