SMALL BUSINESS MANAGEMENT

Chapter 9Small Business and Electronic

Commerce.

E-commerce

E-commerce: consists of the buying and selling of products or services over electronic systems such as: the Internet and other computer networks.

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Small Business and Electronic Commerce What Is Electronic

Commerce?. E-commerce is the use of computers

& electronic communication networks to connect with other relevant organizations.

Growth of E-Commerce:

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Small Business and Electronic CommerceGrowth of E-Commerce: 1979: Began shopping online. 1990: Global communications

network. 1995: Introduction security

protocols and allow to communicate through the Internet, and electronic payment services.

2000:  European  and U.S companies Offered products and services via the World Wide Web.

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Types of E-Commerce

Business to Consumer (B2C). Business to Business (B2B). Business to Government (B2G). Consumer to Consumer (C2C). Consumer to Business (C2B).

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E-Commerce Models1. Brokers.2. Advertising Model.3. Infomediary Model.4. Merchant Model.5. Manufacturer Model.6. Affiliate Model.7. Community Model.8. Subscription Model.9. Utility Model.

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Advantages of E-Commerce

Expand Markets.Maximize Customer Relationships.Create New Services.Reduce Costs.

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Problems with E-Commerce Security Concerns.

Authentication. Access control or authorization. Data integrity.

Copyright and Intellectual Property Threats.

Payment systems. E- cash. E – wallets. Smart Cards. Credit & Debit cards.

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Planning a Website Identify Objectives.

- level 1, level 2, or level 3. Strategies for Website Development.

1. Buy a readymade solution. 2. Rent space in a network based e-

commerce solution.3. Build the system from scratch.

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Choosing a Web Host Types of Hosts.

1. Shared Hosting.2. Dedicated Hosting.3. Collocated Hosting

Advantages of Using a Web Host:

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Attracting Customers to the Website

1. Register With a Search Engine.

2. Request Links on Industry Sites.

3. Designing an Attractive Web Site.

4. Capture Visitor E-mail Addresses.

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Attracting Customers to the Website (cont.)

5. Publish an E-mail Newsletter.

6. Launch a Web site in the E-mail Program.

7. Promote the Site in Mailing Lists and News Groups.

8. Begin an Affiliate Program.

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Concept Checks

1. What activities does e-commerce encompass?.

2. Why is market expansion a popular use for e-commerce?.

3. When developing a security policy, what concerns should be addressed?.

4. What are the different payment systems available to e-commerce?.

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Concept Checks

5. When developing a website what are some important aspects to consider?.

6. What are the methods of attracting customers to a website?.

7. What Is Electronic Commerce?.

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