2.02 SUMMARIZE THE ECONOMIC IMPACT OF E-COMMERCE

SWBAT – EXPLAIN THE MANY SERVICES THAT CAN BE PROVIDED THROUGH E-COMMERCE. ALSO EXPLAINING HOW THESE SERVICES HAVE HELPED COMPANIES EXCEL IN THE 21ST CENTURY.

E-TailingElectronic Retailing or E-Tailing - is the sale of goods or services through the internet.

This can include: • business-to-business sales (B2B) or• business-to-consumer sales (B2C)

E-Tailing Revenue can come from the sale of products and services, through subscriptions to website content, or through advertising.

E-Tailers are not restricted solely to the internet.

Online retailing is normally referred to as e-tailing.

Social CommerceSocial Commerce - is a subset of electronic commerce that involves using social media, online media that supports social interaction, and user contribution to assist in the online buying and selling of products and services

In short social commerce is the use of social networks in the context of e-commerce transactions.

Examples: Customer ratings and reviews User recommendations and referrals Social shopping tools (sharing the act of shopping online) Forums and communites Social media optimization Social applications and advertising

A few places you can find these examples would be:Facebook.com, Twitter.com, Levis.com, Autotrader.com

Electronic Date Interchange (EDI)

Electronic Data Interchange (EDI) – is a document standard which when implemented acts as common interface between two or more computer applications in terms of understanding the document transmitted.

Common Use: Large companies for sending orders to warehouses or tracking their order.

Examples: Two Bank of America employees communicating via company messaging system in regards to checks being cleared.

E-mail & FaxElectronic Mail (e-mail) – a method of exchanging digital messages from an author to one or more recipients. Modern email operates across the internet or other computer networks.

Early E-Mail Systems: Required that the author and the recipient both be online at the same time, in common with instant messaging.

Today’s E-Mail Systems: are based on a store-and-forward model. E-mail servers accept, forward, deliver, and store messages. Neither the users nor their computers are required to be online simultaneously; they need connect only briefly, typically to an email server, for as long as it takes to send or receive messages.

Facsimile (Fax) – The telephonic transmission of scanned printed material normally to a telephone number connected to a printer or other output device. Note: Today you can also fax from your cell phone or e-mail

Business-to-Business (B2B)

Business-to-Consumer (B2C) – Transactions involving businesses such as a manufacturer and wholesaler, or a wholesaler and a retailer. Business to business refers to business that is conducted between companies, rather than between a company and individual consumers.

***FACT*** The overall volume of B2B transactions is much higher than the volume of B2C transactions.***Reason*** In a typical supply chain there will be many B2B transactions involving sub components or raw materials, and only one B2C transaction, specifically sale of the finished product to the end customer.

Examples:Cars a made of many parts that are purchased from different companies. They are then manufactured on an assembly line. The customer then receives the final product. But each part that was purchased was a business-to-business transaction between two companies.

Business-to-Consumer (B2C)

Business-to-Consumer (B2C) – business or transactions conducted directly between a company and consumers who are the end-users of it’s products or services.

***FACT*** The overall volume of B2C transactions is much lower than the volume of B2B transactions.

Examples:McDonald’s takes your order at the drive-thru window. You pay them at the window. Then you are given your order. This is one example of B2C sales.

How These Services Help Companies Excel in the 21st

CenturyEach of the services covered in 2.02 allows small businesses, larges businesses, conglomerates to: Reach millions of potential customers (who may not have known of them without e-commerce) Target Specific Demographic Convenience for consumers (if someone is FL and wants to purchase a dog from a NC seller the transaction can be completed without traveling) Quick Turnaround (email & fax allow for quick response vs having documents sent through mail or delivered face-to-face)

Note: Overall ease of transaction, convenience, and consumers knowing they have options is evidence your company is keeping up with 21st Century Technology!