Overview of Electronic Commerce

Learning Objectives
1. Define electronic commerce (EC) and describe its
various categories.
2. Internet Commerce (I-Commerce)
3. Describe and discuss the content and framework of
EC.
4. Describe the major types of EC transactions.
5. E-Commerce Revenue Model

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Electronic Commerce:
Definitions and Concepts
electronic commerce (EC)
The process of buying, selling, or exchanging products,
services, or information via computer
e-business
A broader definition of EC that includes not just the
buying and selling of goods and services, but also
servicing customers, collaborating with business
partners, and conducting electronic transactions within
an organization

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Internet Commerce (I-Commerce)
Broad term covering all commercial activity on the
internet, including auctioning, placing orders, making
payments, transferring funds, and collaborating with
trading partners. Internet commerce is not a synonym
for electronic commerce (e-commerce) but one of its
subsets.

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Electronic Commerce:
Definitions and Concepts
MAJOR EC CONCEPTS
 Pure Versus Partial EC
 EC Organizations
 brick-and-mortar (old economy) organizations
Old-economy organizations (corporations) that perform their
primary business offline, selling physical products by means of
physical agents
 virtual (pure-play) organizations
Organizations that conduct their business activities solely online
 click-and-mortar (click-and-brick) organizations
Organizations that conduct some e-commerce activities, usually as an
additional marketing channel

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Electronic Commerce:
Definitions and Concepts
ELECTRONIC MARKETS AND NETWORKS
electronic market (e-marketplace)
An online marketplace where buyers and sellers meet to
exchange goods, services, money, or information
intranet
An internal corporate or government network that uses
Internet tools, such as Web browsers, and Internet
protocols
extranet
A network that uses the Internet to link multiple intranets

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The Electronic Commerce Field:
Classification, Content, and a Brief History
AN EC FRAMEWORK
EC applications are supported by infrastructure and by
the following five support areas:
1. People
2. Public policy
3. Marketing and advertising
4. Support services
5. Business partnerships

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Data on Malaysia Cyber user

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LAZADA Single Day Sales on 11
NOV 2019
The Single’s Day event generated more than RM100mil

of gross merchandise value (GMV)

10 million visits in a single day

1,400 transactions per minute

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The Electronic Commerce Field:
Classification, Content, and a Brief History
CLASSIFICATION OF EC BY THE NATURE OF THE
TRANSACTIONS AND THE RELATIONSHIPS
AMONG PARTICIPANTS
business-to-business (B2B)
E-commerce model in which all of the participants are
businesses or other organizations
business-to-consumer (B2C)
E-commerce model in which businesses sell to
individual shoppers
e-tailing
Online retailing, usually B2C

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The Electronic Commerce Field:
Classification, Content, and a Brief History
business-to-business-to-consumer (B2B2C)
E-commerce model in which a business provides some
product or service to a client business that maintains its
own customers
consumer-to-business (C2B)
E-commerce model in which individuals use the
Internet to sell products or services to organizations or
individuals who seek sellers to bid on products or
services they need

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The Electronic Commerce Field:
Classification, Content, and a Brief History
intrabusiness EC
E-commerce category that includes all internal
organizational activities that involve the exchange of
goods, services, or information among various units and
individuals in an organization
business-to-employees (B2E)
E-commerce model in which an organization delivers
services, information, or products to its individual
employees

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The Electronic Commerce Field:
Classification, Content, and a Brief History
consumer-to-consumer (C2C)
E-commerce model in which consumers sell directly to
other consumers
collaborative commerce (c-commerce)
E-commerce model in which individuals or groups
communicate or collaborate online
e-government
E-commerce model in which a government entity buys
or provides goods, services, or information from or to
businesses or individual citizens

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Internet Mediated Commercial
activity
Placing orders
Make Payment
Build brand name
Marketing tool
Collaboration
Searching for vendor/partner
Other..

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Revenue Model
Transaction Fee Revenue Model
Commission paid on volume of transaction
Subscription Revenue Model
Fixed amounts are charged, usually monthly/yearly.
Advertisement Revenue Model
Payment from advertiser
Sales Revenue Model
Revenue from sales of goods or services
Affiliate Revenue Model
Commission for referring customers

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