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E-commerce
E-commerce
From Wikipedia, the free encyclopedia
Electronic commerce, commonly known as e-commerce, is a type of industry where buying and selling of product or service is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce,electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices social media, and telephones as well.
Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions.
E-commerce can be divided into:
• E-tailing or "virtual storefronts" on websites with online catalogs, sometimes gathered into a "virtual mall"
• The gathering and use of demographic data through Web contacts and social media
• Electronic Data Interchange (EDI), the business-to-business exchange of data
• E-mail and fax and their use as media for reaching prospective and established customers (for example, with newsletters)
• Business-to-business buying and selling
• The security of business transactions
Contents
[hide]
• 1 Timeline
• 2 Business applications
• 3 Governmental regulation
• 4 Forms
• 5 Global trends
• 6 Impact on markets and retailers
• 7 Distribution channels
• 8 See also
• 9 References
• 10 Further reading
• 11 External links
[edit]Timeline
A timeline for the development of e-commerce:
• 1979: Michael Aldrich invented online shopping[1]
• 1981: Thomson Holidays, UK is first B2B online shopping[citation needed]
• 1982: Minitel was introduced nationwide in France by France Telecom and used for online ordering.
• 1984: Gateshead SIS/Tesco is first B2C online shopping and Mrs Snowball, 72, is the first online home shopper[2]
• 1984: In April 1984, CompuServe launches the Electronic Mall in the USA and Canada. It is the first comprehensive electronic commerce service.[3]
• 1985: Nissan UK sells cars and finance with credit checking to customers online from dealers' lots.[citation needed]
• 1987: Swreg begins to provide software and shareware authors means to sell their products online through an electronic Merchant account.[citation needed]
• 1990: Tim Berners-Lee writes the first web browser, WorldWideWeb, using a NeXT computer.[4]
• 1992: St. Martin's Press publishes J.H. Snider and Terra Ziporyn's Future Shop: How New Technologies Will Change the Way We Shop and What We Buy.[5]
• 1992: Terry Brownell launches first fully graphical, iconic navigated Bulletin board system online shopping using RoboBOARD/FX.
• 1994: Netscape releases the Navigator browser in October under the code name Mozilla. Pizza Hut offers online ordering on its Web page. The first online bank opens. Attempts to offer flower delivery and magazine subscriptions online. Adult materials also become commercially available, as do cars and bikes. Netscape 1.0 is introduced in late 1994 SSL encryption that made transactions secure.
• 1995: Thursday 27 April 1995, the purchase of a book by Paul Stanfield, Product Manager for CompuServe UK, from W H Smith’s shop within CompuServe’s UK Shopping Centre is the UK’s first national online shopping service secure transaction. The shopping service at launch featured WH Smith, Tesco, Virgin/Our Price, Great Universal Stores/GUS, Interflora, Dixons Retail, Past Times, PC World (retailer) and Innovations.[6]
• 1995: Jeff Bezos launches Amazon.com and the first commercial-free 24 hour, internet-only radio stations, Radio HK and NetRadio start broadcasting. Dell and Cisco begin to aggressively use Internet for commercial transactions. eBay is founded by computer programmer Pierre Omidyar as AuctionWeb.
• 1996: IndiaMART B2B marketplace established in India.
• 1998: Electronic postal stamps can be purchased and downloaded for printing from the Web.
• 1999: Alibaba Group is established in China.Business.com sold for US $7.5 million to eCompanies, which was purchased in 1997 for US $149,000. The peer-to-peer filesharing softwareNapster launches. ATG Stores launches to sell decorative items for the home online.
• 2000: The dot-com bust.
• 2001: Alibaba.com achieved profitability in December 2001.
• 2002: eBay acquires PayPal for $1.5 billion.[7] Niche retail companies Wayfair and NetShops are founded with the concept of selling products through several targeted domains, rather than a central portal.
• 2003: Amazon.com posts first yearly profit.
• 2004: DHgate.com, China's first online b2b transaction platform, is established, forcing other b2b sites to move away from the "yellow pages" model.[8]
• 2005: Yuval Tal founds Payoneer - a secure online payment distribution solution.[citation needed]
• 2007: Business.com acquired by R.H. Donnelley for $345 million.[9]
• 2009: Zappos.com acquired by Amazon.com for $928 million.[10] Retail Convergence, operator of private sale website RueLaLa.com, acquired by GSI Commerce for $180 million, plus up to $170 million in earn-out payments based on performance through 2012.[11]
• 2010: Groupon reportedly rejects a $6 billion offer from Google. Instead, the group buying websites went ahead with an IPO on November 4, 2011. It was the largest IPO since Google.[12][13]
• 2011: Quidsi.com, parent company of Diapers.com, acquired by Amazon.com for $500 million in cash plus $45 million in debt and other obligations.[14] GSI Commerce, a company specializing in creating, developing and running online shopping sites for brick and mortar businesses, acquired by eBay for $2.4 billion.[15]
• 2012: US eCommerce and Online Retail sales projected to reach $226 billion, an increase of 12 percent over 2011.[16]
• 2012: Us eCommerce and Online Retail holiday sales reach $33.8 billion, up 13 percent. [17]
[edit]Business applications
An example of an automated online assistant on a merchandising website.
Some common applications related to electronic commerce are the following:
• Document automation in supply chain and logistics
• Domestic and international payment systems
• Enterprise content management
• Group buying
• Automated online assistants
• Instant messaging
• Newsgroups
• Online shopping and order tracking
• Online banking
• Online office suites
• Shopping cart software
• Teleconferencing
• Electronic tickets
[edit]Governmental regulation
In the United States, some electronic commerce activities are regulated by the Federal Trade Commission (FTC). These activities include the use of commercial e-mails, online advertising and consumer privacy. The CAN-SPAM Act of 2003 establishes national standards for direct marketing over e-mail. The Federal Trade Commission Act regulates all forms of advertising, including online advertising, and states that advertising must be truthful and non-deceptive.[18] Using its authority under Section 5 of the FTC Act, which prohibits unfair or deceptive practices, the FTC has brought a number of cases to enforce the promises in corporate privacy statements, including promises about the security of consumers’ personal information.[19] As result, any corporate privacy policy related to e-commerce activity may be subject to enforcement by the FTC.
The Ryan Haight Online Pharmacy Consumer Protection Act of 2008, which came into law in 2008, amends the Controlled Substances Act to address online pharmacies.[20]
Internationally there is the International Consumer Protection and Enforcement Network (ICPEN), which was formed in 1991 from an informal network of government customer fair trade organisations. The purpose was stated as being to find ways of co-operating on tackling consumer problems connected with cross-border transactions in both goods and services, and to help ensure exchanges of information among the participants for mutual benefit and understanding. From this came econsumer, as an initiative of ICPEN since April 2001. www.econsumer.gov is a portal to report complaints about online and related transactions with foreign companies.
There is also Asia Pacific Economic Cooperation (APEC) was established in 1989 with the vision of achieving stability, security and prosperity for the region through free and open trade and investment. APEC has an Electronic Commerce Stearing Group as well as working on common privacy regulations throughout the APEC region.
In Australia, Trade is covered under Australian Treasury Guidelines for electronic commerce,[21] and the Australian Competition and Consumer Commission[22] regulates and offers advice on how to deal with businesses online,[23] and offers specific advice on what happens if things go wrong.[24]
Also Australian government ecommerce website[25] provides information on ecommerce in Australia.
In the United Kingdom, The FSA (Financial Services Authority)[26] is the competent authority for most aspects of the Payment Services Directive (PSD). The UK implemented the PSD through the Payment Services Regulations 2009 (PSRs), which came into effect on 1 November 2009. The PSR affects firms providing payment services and their customers. These firms include banks, non-bank credit card issuers and non-bank merchant acquirers, e-money issuers, etc. The PSRs created a new class of regulated firms known as payment institutions (PIs), who are subject to prudential requirements. Article 87 of the PSD requires the European Commission to report on the implementation and impact of the PSD by 1 November 2012.[27]
[edit]Forms
Contemporary electronic commerce involves everything from ordering "digital" content for immediate online consumption, to ordering conventional goods and services, to "meta" services to facilitate other types of electronic commerce.
On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic commerce.
Aside from traditional e-Commerce, m-Commerce as well as the nascent t-Commerce[28] channels are often seen as the current 2013 poster children of electronic I-Commerce.
[edit]Global trends
In 2010, the United Kingdom had the biggest e-commerce market in the world when measured by the amount spent per capita, even higher than the USA.[29]
Amongst emerging economies, China's e-commerce presence continues to expand. With 384 million internet users, China's online shopping sales rose to $36.6 billion in 2009 and one of the reasons behind the huge growth has been the improved trust level for shoppers. The Chinese retailers have been able to help consumers feel more comfortable shopping online.[30] eCommerce is also expanding across the Middle East. Having recorded the world’s fastest growth in internet usage between 2000 and 2009, the region is now home to more than 60 million internet users. Retail, travel and gaming are the region’s top eCommerce segments, in spite of difficulties such as the lack of region-wide legal frameworks and logistical problems in cross-border transportation.[31] E-Commerce has become an important tool for businesses worldwide not only to sell to customers but also to engage them.[32]
[edit]Impact on markets and retailers
Economists have theorized that e-commerce ought to lead to intensified price competition, as it increases consumers' ability to gather information about products and prices. Research by four economists at the University of Chicago has found that the growth of online shopping has also affected industry structure in two areas that have seen significant growth in e-commerce, bookshopsand travel agencies. Generally, larger firms have grown at the expense of smaller ones, as they are able to use economies of scale and offer lower prices. The lone exception to this pattern has been the very smallest category of bookseller, shops with between one and four employees, which appear to have withstood the trend.[33]
[edit]Distribution channels
E-commerce has grown in importance as companies have adopted Pure-Click and Brick and Click channel systems. We can distinguish between pure-click and brick and click channel system adopted by companies.
• Pure-Click or Pureplay companies are those that have launched a website without any previous existence as a firm.
• Bricks-and-Clicks companies are those existing companies that have added an online site for e-commerce.
2.
What is a profit and loss sheet?
A P&L sheet is a key weapon in your bookkeeping arsenal, but what is it?
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A profit and loss sheet details your business transactions, subtracting the total outgoings from the total income to give you a reading of how much, if any, profit you have made.
A profit and loss sheet, unlike a balance sheet, displays the financial health of your company for a period of time – a month, a quarter or a year. A balance sheet only represents your finances at a particular moment in time.
If your company is incorporated, you are required by law to produce a profit and loss sheet for each financial year. If your business is not trading as a limited company you don’t have to produce one, but the information you give to HMRC to work out your tax bill will amount to the same thing anyway. Even if you’re not required to produce one, the P&L sheet is useful to show owners, investors and shareholders how your business is doing at a glance.
You can find an example of a basic P&L sheet below:
£ £
Sales/Turnover 60,894
Opening stock (1st of month) 3,000
Add purchase made 24,253
27,253
Less closing stock (30/31st of month) 4,278
Cost of goods sold 31,531
Direct labour costs 7,364
38,895
Gross Profits 29,363
Overheads
Rent and rates 3,294
Heat, light and power 783
Insurance 106
Indirect wages and salaries 7,296
Marketing costs 571
Printing, stationery and consumables 1,951
Computer costs 758
Telephone 939
Depreciation of assets 3,697
Legal and professional fees 750
Bank and finance charges 264
20,409
Net Profit Before Tax 8,954
3.
Profit
For companies, shorten the distance, the expansion of markets, business partners jeringan expansion and efficiency, in other words speed up service to customers, and more responsive service, and reduce the costs associated with paper, such as letter postage, printing, reports, etc. so as to increase revenue.
For Consumers, effective, physically safe and flexible
For the Public, reducing pollution and environmental pollution, open up new job opportunities, benefit the academic world, improve the quality of human.
Loss
Increasing INDIVIDUALISM, in electronic trading and mendapatan one can transact goods / services as needed without meeting anyone.
Potential Disappointment Sometimes, what is seen a computer monitor screen sometimes different from what is seen by naked eye
No HUMANE, often once a person goes into a shop & MALL not just want to satisfy their need for goods / services, but could possibly also for refreshing, meet friends and family and so on.
WEAKNESS AND CONSTRAINTS OF E-COMMERCE
According to a survey conducted by CommerceNet http://www.commerce.net/ buyers / shoppers have not put their trust in e-commerce, they can not find what they are looking at e-commerce, there is no way an easy and simple to pay. In addition, surfing in e-commerce has not been completely smooth. Customer e-commerce is still afraid there is a credit card thief, confidential personal information they become open, and poor network performance.
Generallybuyers are still not convinced that it would be advantageous to connect to the Internet, search for shopping sites, wait for the download pictures, trying to understand how to order something, and then must takut whether the number of their credit cards taken by the hackers. It seems to convince these customers, e-merchants must do a lot of customers pemandaian process.
Nevertheless Gail Grant, head of research at CommerceNet http://www.commerce.net/ predict most buyers will successfully overcome the barrier after a few years. Grant says if only on a Web page can be created labels that provide information about products and prices, would be very easy for search engines to find a product online. It has not happened is because most merchants want people to discover not only their products but its competitors, especially if it turns out that given the price of cheaper competitors.
For a system of business-to-business, the issue is not sepelik above, but still there are serious issues. Like many entrepreneurs do not have a good model how to set up an e-commerce sites, they have difficulties to make sharing between information obtained online with other business applications. Problems that might be the main obstacle is the idea of sharing business information to customers and suppliers – this is the main strategy in the e-commerce business to business.
The main key to solving the problem is the merchant must stop thinking that way propped himself on Java applets then all problems will be solved, but the truth is actually the merchant would have to restructure their operations to take maximum advantage of e-commerce. Grant said, “E-commerce is just like any automation – it amplifies problems with Their operation They already had.”
4.
Defining Marketing for the 21st Century
________________________________________
The 21st century has seen the advent of the new economy, thanks to the technology innovation and development. To understand the new economy, it is important to understand in brief characteristics and features of the old economy. Industrial revolution was the start point of the old economy with focus on producing massive quantities of standardized products. This mass product was important for cost reduction and satisfying large consumer base, as production increased companies expanded into new markets across geographical areas. The old economy had the organizational hierarchy where in top management gave out instructions which were executed by the middle manager over the workers.
In contrast, the new economy has seen the buying power at all time thanks to the digital revolution. Consumers have access to all types’ information for product and services. Furthermore, standardization has been replaced by more customization with a dramatic increase in terms of product offering. Purchase experience has also changed as well with the introduction of online purchase, which can be done 24 × 7 with products getting delivered at office or home.
Companies have also taken advantage of information available and are designing more efficient marketing programs across consumers as well as the distribution channel. Digital revolution has increased speed of communication mobile, e-mail SMS, etc. This helps companies take faster decisions and implement strategies more swiftly.
Marketing is art of developing, advertising and distributing goods and services to consumer as well as business. However, marketing is not just limited to goods and services it is extended to everything from places to ideas and in between. This brings forth many challenges within which marketing people have to take strategy decisions. And answer to these challenges depends on the market the company is catering to, for consumer market decision are with respect to product, packaging and distribution channel. For business market, knowledge and awareness of product is very essential for marketing people as businesses are on the lookout to maintain or establish a credential in their respective market. For global market, marketing people have to consider not only culture diversity but also be careful with respect to international trade laws, trade agreement, and regulatory requirements of individual market. For non for profit organization with limited budgets, importance is related to pricing of products, so companies have to design and sell products accordingly.
Marketing philosophy employed by any given company has to be mix of organization interest, consumer interest and societal interest. In production philosophy, companies focus is on numbers, high production count, which reduces cost per unit and along with mass distribution. This kind of concept is usually making sense in a developing market where there is the need of product in large numbers. The product philosophy talks about consumers who are willing to pay an extra premium for high quality and reliable performance, so companies focus on producing well made products. The selling concept believes in pushing consumers into buying of products, which under normal circumstance, they would be resistant. The marketing concept believes consumer satisfaction, thereby developing and selling products keeping focus solely on customer needs and wants. The customer philosophy believes in the creation of customized products, where in products is design looking at historical transaction of consumers. The last philosophy is the societal concept which believes in developing products, which not only generate consumer satisfaction but also take into account well being of society or environment.
Digital revolution and 21st century have made companies fine tune the way they conduct their business. One major trend observed is the need of stream lining processes and systems with the focus on cost reduction through outsourcing. Another trend observed in companies is, encouragement to entrepreneur style of work environment with glocal (global-local) approach. At the same time, marketers of companies are looking forward to building long term relationship with consumers. This relationship establishes platform understanding consumer needs and preference. Marketers are looking at distribution channels as partners in business and not as the customer. Companies and marketers are making decisions using various computers simulated models.
To summarize 21st century marketing is challenge, which is to keep up pace with changing time.
5.
Introduction to E Commerce and Internet
We are living in the age of technological advances. Development in our society began to happen post the World Wars, where in Industrial revolution started changing the face of economies. With evolution of Information Technology we first heard the Radio and later the TV that could capture pictures from the air and show it on the TV box. Then came the ‘Computer’ which was aptly the magic box. Computers and advancement of information and communication technology heralded the arrival of ‘Internet’ or ‘World Wide Web’ technology.
What a difference the Internet has made to our lives. No other invention has had such a mass transformational power over the entire human society, enterprise, business, economy as well as the political systems, education and the world communities and nations at large. The internet is rightly called the highway that has managed to erase the borders between countries and societies and taken the human society to a different level altogether.
Take a look at our lives today. There is no aspect of our life that is not interfaced with internet in one way or the other. From an individual’s need to find a date or a suitable life partner to one’s banking, insurance and other payments as well as dining out and not to forget the online shopping, internet has managed to become the mainstream facilitator to each and every individual.
Today millions of users access and use the internet for various purposes throughout the day. They use the internet for searching, browsing, writing & communication, listening, watching news, videos, publishing copying, printing, discussions, trading and selling etc. The list of activities and choices that the internet has got to offer to individuals is ever expanding. With millions of users actively looking for various products, information and services, there is a huge opportunity for the businesses to jump on to the internet bandwagon and cash in on the business opportunity that is presenting itself every minute.
Technology has helped build a platform that has enabled the businesses to cash in on the huge population and market that is now accessible over the internet and sell to them. Take the case of Online Banking, Mobile Banking, Debit| Credit Cards, ATMs as well as online trading and other business transactions, all these have grown and happened as a result of technological advancement in terms of communication, software as well as hardware technologies. From the time that one connected to Internet using a desktop, model and a telephone line to the Wi-Fi technology of today, we have graduated very fast making it possible to buy and sell at the click of a button. At another level the Business Processes as well as ERP coupled with various software and applications besides EDI, have enabled businesses to go ‘On Line’ with their business models.
Today no business, be it Business to Business or Business to Consumer, can ignore the huge ‘Online Market’ that exists on the internet. E Commerce was inevitable. Physical markets have literally been replaced with ‘Virtual Markets’. E Commerce has had far reaching impact on business organisations for it has redefined ‘Market’. E Commerce has made it possible for sellers to reach out to planet wide markets and consumers, thus changing the way business is conducted. For every prospective Management Professional, the in depth understanding of ‘Online Marketing’ and ‘E Commerce’ have become very important. Marketing managers have got to go back to the class rooms to learn the new rules of game in handling Online Marketing which is drastically and totally different from the traditional marketing, selling, distribution and advertising strategies. Understanding all about Internet, E Commerce mechanisms, technologies, learning how to market online, understanding E Customer and learning to identify, build and nurture a relationship with the E Customer become the building blocks of one’s new learning.
From Wikipedia, the free encyclopedia
Electronic commerce, commonly known as e-commerce, is a type of industry where buying and selling of product or service is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce,electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices social media, and telephones as well.
Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions.
E-commerce can be divided into:
• E-tailing or "virtual storefronts" on websites with online catalogs, sometimes gathered into a "virtual mall"
• The gathering and use of demographic data through Web contacts and social media
• Electronic Data Interchange (EDI), the business-to-business exchange of data
• E-mail and fax and their use as media for reaching prospective and established customers (for example, with newsletters)
• Business-to-business buying and selling
• The security of business transactions
Contents
[hide]
• 1 Timeline
• 2 Business applications
• 3 Governmental regulation
• 4 Forms
• 5 Global trends
• 6 Impact on markets and retailers
• 7 Distribution channels
• 8 See also
• 9 References
• 10 Further reading
• 11 External links
[edit]Timeline
A timeline for the development of e-commerce:
• 1979: Michael Aldrich invented online shopping[1]
• 1981: Thomson Holidays, UK is first B2B online shopping[citation needed]
• 1982: Minitel was introduced nationwide in France by France Telecom and used for online ordering.
• 1984: Gateshead SIS/Tesco is first B2C online shopping and Mrs Snowball, 72, is the first online home shopper[2]
• 1984: In April 1984, CompuServe launches the Electronic Mall in the USA and Canada. It is the first comprehensive electronic commerce service.[3]
• 1985: Nissan UK sells cars and finance with credit checking to customers online from dealers' lots.[citation needed]
• 1987: Swreg begins to provide software and shareware authors means to sell their products online through an electronic Merchant account.[citation needed]
• 1990: Tim Berners-Lee writes the first web browser, WorldWideWeb, using a NeXT computer.[4]
• 1992: St. Martin's Press publishes J.H. Snider and Terra Ziporyn's Future Shop: How New Technologies Will Change the Way We Shop and What We Buy.[5]
• 1992: Terry Brownell launches first fully graphical, iconic navigated Bulletin board system online shopping using RoboBOARD/FX.
• 1994: Netscape releases the Navigator browser in October under the code name Mozilla. Pizza Hut offers online ordering on its Web page. The first online bank opens. Attempts to offer flower delivery and magazine subscriptions online. Adult materials also become commercially available, as do cars and bikes. Netscape 1.0 is introduced in late 1994 SSL encryption that made transactions secure.
• 1995: Thursday 27 April 1995, the purchase of a book by Paul Stanfield, Product Manager for CompuServe UK, from W H Smith’s shop within CompuServe’s UK Shopping Centre is the UK’s first national online shopping service secure transaction. The shopping service at launch featured WH Smith, Tesco, Virgin/Our Price, Great Universal Stores/GUS, Interflora, Dixons Retail, Past Times, PC World (retailer) and Innovations.[6]
• 1995: Jeff Bezos launches Amazon.com and the first commercial-free 24 hour, internet-only radio stations, Radio HK and NetRadio start broadcasting. Dell and Cisco begin to aggressively use Internet for commercial transactions. eBay is founded by computer programmer Pierre Omidyar as AuctionWeb.
• 1996: IndiaMART B2B marketplace established in India.
• 1998: Electronic postal stamps can be purchased and downloaded for printing from the Web.
• 1999: Alibaba Group is established in China.Business.com sold for US $7.5 million to eCompanies, which was purchased in 1997 for US $149,000. The peer-to-peer filesharing softwareNapster launches. ATG Stores launches to sell decorative items for the home online.
• 2000: The dot-com bust.
• 2001: Alibaba.com achieved profitability in December 2001.
• 2002: eBay acquires PayPal for $1.5 billion.[7] Niche retail companies Wayfair and NetShops are founded with the concept of selling products through several targeted domains, rather than a central portal.
• 2003: Amazon.com posts first yearly profit.
• 2004: DHgate.com, China's first online b2b transaction platform, is established, forcing other b2b sites to move away from the "yellow pages" model.[8]
• 2005: Yuval Tal founds Payoneer - a secure online payment distribution solution.[citation needed]
• 2007: Business.com acquired by R.H. Donnelley for $345 million.[9]
• 2009: Zappos.com acquired by Amazon.com for $928 million.[10] Retail Convergence, operator of private sale website RueLaLa.com, acquired by GSI Commerce for $180 million, plus up to $170 million in earn-out payments based on performance through 2012.[11]
• 2010: Groupon reportedly rejects a $6 billion offer from Google. Instead, the group buying websites went ahead with an IPO on November 4, 2011. It was the largest IPO since Google.[12][13]
• 2011: Quidsi.com, parent company of Diapers.com, acquired by Amazon.com for $500 million in cash plus $45 million in debt and other obligations.[14] GSI Commerce, a company specializing in creating, developing and running online shopping sites for brick and mortar businesses, acquired by eBay for $2.4 billion.[15]
• 2012: US eCommerce and Online Retail sales projected to reach $226 billion, an increase of 12 percent over 2011.[16]
• 2012: Us eCommerce and Online Retail holiday sales reach $33.8 billion, up 13 percent. [17]
[edit]Business applications
An example of an automated online assistant on a merchandising website.
Some common applications related to electronic commerce are the following:
• Document automation in supply chain and logistics
• Domestic and international payment systems
• Enterprise content management
• Group buying
• Automated online assistants
• Instant messaging
• Newsgroups
• Online shopping and order tracking
• Online banking
• Online office suites
• Shopping cart software
• Teleconferencing
• Electronic tickets
[edit]Governmental regulation
In the United States, some electronic commerce activities are regulated by the Federal Trade Commission (FTC). These activities include the use of commercial e-mails, online advertising and consumer privacy. The CAN-SPAM Act of 2003 establishes national standards for direct marketing over e-mail. The Federal Trade Commission Act regulates all forms of advertising, including online advertising, and states that advertising must be truthful and non-deceptive.[18] Using its authority under Section 5 of the FTC Act, which prohibits unfair or deceptive practices, the FTC has brought a number of cases to enforce the promises in corporate privacy statements, including promises about the security of consumers’ personal information.[19] As result, any corporate privacy policy related to e-commerce activity may be subject to enforcement by the FTC.
The Ryan Haight Online Pharmacy Consumer Protection Act of 2008, which came into law in 2008, amends the Controlled Substances Act to address online pharmacies.[20]
Internationally there is the International Consumer Protection and Enforcement Network (ICPEN), which was formed in 1991 from an informal network of government customer fair trade organisations. The purpose was stated as being to find ways of co-operating on tackling consumer problems connected with cross-border transactions in both goods and services, and to help ensure exchanges of information among the participants for mutual benefit and understanding. From this came econsumer, as an initiative of ICPEN since April 2001. www.econsumer.gov is a portal to report complaints about online and related transactions with foreign companies.
There is also Asia Pacific Economic Cooperation (APEC) was established in 1989 with the vision of achieving stability, security and prosperity for the region through free and open trade and investment. APEC has an Electronic Commerce Stearing Group as well as working on common privacy regulations throughout the APEC region.
In Australia, Trade is covered under Australian Treasury Guidelines for electronic commerce,[21] and the Australian Competition and Consumer Commission[22] regulates and offers advice on how to deal with businesses online,[23] and offers specific advice on what happens if things go wrong.[24]
Also Australian government ecommerce website[25] provides information on ecommerce in Australia.
In the United Kingdom, The FSA (Financial Services Authority)[26] is the competent authority for most aspects of the Payment Services Directive (PSD). The UK implemented the PSD through the Payment Services Regulations 2009 (PSRs), which came into effect on 1 November 2009. The PSR affects firms providing payment services and their customers. These firms include banks, non-bank credit card issuers and non-bank merchant acquirers, e-money issuers, etc. The PSRs created a new class of regulated firms known as payment institutions (PIs), who are subject to prudential requirements. Article 87 of the PSD requires the European Commission to report on the implementation and impact of the PSD by 1 November 2012.[27]
[edit]Forms
Contemporary electronic commerce involves everything from ordering "digital" content for immediate online consumption, to ordering conventional goods and services, to "meta" services to facilitate other types of electronic commerce.
On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic commerce.
Aside from traditional e-Commerce, m-Commerce as well as the nascent t-Commerce[28] channels are often seen as the current 2013 poster children of electronic I-Commerce.
[edit]Global trends
In 2010, the United Kingdom had the biggest e-commerce market in the world when measured by the amount spent per capita, even higher than the USA.[29]
Amongst emerging economies, China's e-commerce presence continues to expand. With 384 million internet users, China's online shopping sales rose to $36.6 billion in 2009 and one of the reasons behind the huge growth has been the improved trust level for shoppers. The Chinese retailers have been able to help consumers feel more comfortable shopping online.[30] eCommerce is also expanding across the Middle East. Having recorded the world’s fastest growth in internet usage between 2000 and 2009, the region is now home to more than 60 million internet users. Retail, travel and gaming are the region’s top eCommerce segments, in spite of difficulties such as the lack of region-wide legal frameworks and logistical problems in cross-border transportation.[31] E-Commerce has become an important tool for businesses worldwide not only to sell to customers but also to engage them.[32]
[edit]Impact on markets and retailers
Economists have theorized that e-commerce ought to lead to intensified price competition, as it increases consumers' ability to gather information about products and prices. Research by four economists at the University of Chicago has found that the growth of online shopping has also affected industry structure in two areas that have seen significant growth in e-commerce, bookshopsand travel agencies. Generally, larger firms have grown at the expense of smaller ones, as they are able to use economies of scale and offer lower prices. The lone exception to this pattern has been the very smallest category of bookseller, shops with between one and four employees, which appear to have withstood the trend.[33]
[edit]Distribution channels
E-commerce has grown in importance as companies have adopted Pure-Click and Brick and Click channel systems. We can distinguish between pure-click and brick and click channel system adopted by companies.
• Pure-Click or Pureplay companies are those that have launched a website without any previous existence as a firm.
• Bricks-and-Clicks companies are those existing companies that have added an online site for e-commerce.
2.
What is a profit and loss sheet?
A P&L sheet is a key weapon in your bookkeeping arsenal, but what is it?
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A profit and loss sheet details your business transactions, subtracting the total outgoings from the total income to give you a reading of how much, if any, profit you have made.
A profit and loss sheet, unlike a balance sheet, displays the financial health of your company for a period of time – a month, a quarter or a year. A balance sheet only represents your finances at a particular moment in time.
If your company is incorporated, you are required by law to produce a profit and loss sheet for each financial year. If your business is not trading as a limited company you don’t have to produce one, but the information you give to HMRC to work out your tax bill will amount to the same thing anyway. Even if you’re not required to produce one, the P&L sheet is useful to show owners, investors and shareholders how your business is doing at a glance.
You can find an example of a basic P&L sheet below:
£ £
Sales/Turnover 60,894
Opening stock (1st of month) 3,000
Add purchase made 24,253
27,253
Less closing stock (30/31st of month) 4,278
Cost of goods sold 31,531
Direct labour costs 7,364
38,895
Gross Profits 29,363
Overheads
Rent and rates 3,294
Heat, light and power 783
Insurance 106
Indirect wages and salaries 7,296
Marketing costs 571
Printing, stationery and consumables 1,951
Computer costs 758
Telephone 939
Depreciation of assets 3,697
Legal and professional fees 750
Bank and finance charges 264
20,409
Net Profit Before Tax 8,954
3.
Profit
For companies, shorten the distance, the expansion of markets, business partners jeringan expansion and efficiency, in other words speed up service to customers, and more responsive service, and reduce the costs associated with paper, such as letter postage, printing, reports, etc. so as to increase revenue.
For Consumers, effective, physically safe and flexible
For the Public, reducing pollution and environmental pollution, open up new job opportunities, benefit the academic world, improve the quality of human.
Loss
Increasing INDIVIDUALISM, in electronic trading and mendapatan one can transact goods / services as needed without meeting anyone.
Potential Disappointment Sometimes, what is seen a computer monitor screen sometimes different from what is seen by naked eye
No HUMANE, often once a person goes into a shop & MALL not just want to satisfy their need for goods / services, but could possibly also for refreshing, meet friends and family and so on.
WEAKNESS AND CONSTRAINTS OF E-COMMERCE
According to a survey conducted by CommerceNet http://www.commerce.net/ buyers / shoppers have not put their trust in e-commerce, they can not find what they are looking at e-commerce, there is no way an easy and simple to pay. In addition, surfing in e-commerce has not been completely smooth. Customer e-commerce is still afraid there is a credit card thief, confidential personal information they become open, and poor network performance.
Generallybuyers are still not convinced that it would be advantageous to connect to the Internet, search for shopping sites, wait for the download pictures, trying to understand how to order something, and then must takut whether the number of their credit cards taken by the hackers. It seems to convince these customers, e-merchants must do a lot of customers pemandaian process.
Nevertheless Gail Grant, head of research at CommerceNet http://www.commerce.net/ predict most buyers will successfully overcome the barrier after a few years. Grant says if only on a Web page can be created labels that provide information about products and prices, would be very easy for search engines to find a product online. It has not happened is because most merchants want people to discover not only their products but its competitors, especially if it turns out that given the price of cheaper competitors.
For a system of business-to-business, the issue is not sepelik above, but still there are serious issues. Like many entrepreneurs do not have a good model how to set up an e-commerce sites, they have difficulties to make sharing between information obtained online with other business applications. Problems that might be the main obstacle is the idea of sharing business information to customers and suppliers – this is the main strategy in the e-commerce business to business.
The main key to solving the problem is the merchant must stop thinking that way propped himself on Java applets then all problems will be solved, but the truth is actually the merchant would have to restructure their operations to take maximum advantage of e-commerce. Grant said, “E-commerce is just like any automation – it amplifies problems with Their operation They already had.”
4.
Defining Marketing for the 21st Century
________________________________________
The 21st century has seen the advent of the new economy, thanks to the technology innovation and development. To understand the new economy, it is important to understand in brief characteristics and features of the old economy. Industrial revolution was the start point of the old economy with focus on producing massive quantities of standardized products. This mass product was important for cost reduction and satisfying large consumer base, as production increased companies expanded into new markets across geographical areas. The old economy had the organizational hierarchy where in top management gave out instructions which were executed by the middle manager over the workers.
In contrast, the new economy has seen the buying power at all time thanks to the digital revolution. Consumers have access to all types’ information for product and services. Furthermore, standardization has been replaced by more customization with a dramatic increase in terms of product offering. Purchase experience has also changed as well with the introduction of online purchase, which can be done 24 × 7 with products getting delivered at office or home.
Companies have also taken advantage of information available and are designing more efficient marketing programs across consumers as well as the distribution channel. Digital revolution has increased speed of communication mobile, e-mail SMS, etc. This helps companies take faster decisions and implement strategies more swiftly.
Marketing is art of developing, advertising and distributing goods and services to consumer as well as business. However, marketing is not just limited to goods and services it is extended to everything from places to ideas and in between. This brings forth many challenges within which marketing people have to take strategy decisions. And answer to these challenges depends on the market the company is catering to, for consumer market decision are with respect to product, packaging and distribution channel. For business market, knowledge and awareness of product is very essential for marketing people as businesses are on the lookout to maintain or establish a credential in their respective market. For global market, marketing people have to consider not only culture diversity but also be careful with respect to international trade laws, trade agreement, and regulatory requirements of individual market. For non for profit organization with limited budgets, importance is related to pricing of products, so companies have to design and sell products accordingly.
Marketing philosophy employed by any given company has to be mix of organization interest, consumer interest and societal interest. In production philosophy, companies focus is on numbers, high production count, which reduces cost per unit and along with mass distribution. This kind of concept is usually making sense in a developing market where there is the need of product in large numbers. The product philosophy talks about consumers who are willing to pay an extra premium for high quality and reliable performance, so companies focus on producing well made products. The selling concept believes in pushing consumers into buying of products, which under normal circumstance, they would be resistant. The marketing concept believes consumer satisfaction, thereby developing and selling products keeping focus solely on customer needs and wants. The customer philosophy believes in the creation of customized products, where in products is design looking at historical transaction of consumers. The last philosophy is the societal concept which believes in developing products, which not only generate consumer satisfaction but also take into account well being of society or environment.
Digital revolution and 21st century have made companies fine tune the way they conduct their business. One major trend observed is the need of stream lining processes and systems with the focus on cost reduction through outsourcing. Another trend observed in companies is, encouragement to entrepreneur style of work environment with glocal (global-local) approach. At the same time, marketers of companies are looking forward to building long term relationship with consumers. This relationship establishes platform understanding consumer needs and preference. Marketers are looking at distribution channels as partners in business and not as the customer. Companies and marketers are making decisions using various computers simulated models.
To summarize 21st century marketing is challenge, which is to keep up pace with changing time.
5.
Introduction to E Commerce and Internet
We are living in the age of technological advances. Development in our society began to happen post the World Wars, where in Industrial revolution started changing the face of economies. With evolution of Information Technology we first heard the Radio and later the TV that could capture pictures from the air and show it on the TV box. Then came the ‘Computer’ which was aptly the magic box. Computers and advancement of information and communication technology heralded the arrival of ‘Internet’ or ‘World Wide Web’ technology.
What a difference the Internet has made to our lives. No other invention has had such a mass transformational power over the entire human society, enterprise, business, economy as well as the political systems, education and the world communities and nations at large. The internet is rightly called the highway that has managed to erase the borders between countries and societies and taken the human society to a different level altogether.
Take a look at our lives today. There is no aspect of our life that is not interfaced with internet in one way or the other. From an individual’s need to find a date or a suitable life partner to one’s banking, insurance and other payments as well as dining out and not to forget the online shopping, internet has managed to become the mainstream facilitator to each and every individual.
Today millions of users access and use the internet for various purposes throughout the day. They use the internet for searching, browsing, writing & communication, listening, watching news, videos, publishing copying, printing, discussions, trading and selling etc. The list of activities and choices that the internet has got to offer to individuals is ever expanding. With millions of users actively looking for various products, information and services, there is a huge opportunity for the businesses to jump on to the internet bandwagon and cash in on the business opportunity that is presenting itself every minute.
Technology has helped build a platform that has enabled the businesses to cash in on the huge population and market that is now accessible over the internet and sell to them. Take the case of Online Banking, Mobile Banking, Debit| Credit Cards, ATMs as well as online trading and other business transactions, all these have grown and happened as a result of technological advancement in terms of communication, software as well as hardware technologies. From the time that one connected to Internet using a desktop, model and a telephone line to the Wi-Fi technology of today, we have graduated very fast making it possible to buy and sell at the click of a button. At another level the Business Processes as well as ERP coupled with various software and applications besides EDI, have enabled businesses to go ‘On Line’ with their business models.
Today no business, be it Business to Business or Business to Consumer, can ignore the huge ‘Online Market’ that exists on the internet. E Commerce was inevitable. Physical markets have literally been replaced with ‘Virtual Markets’. E Commerce has had far reaching impact on business organisations for it has redefined ‘Market’. E Commerce has made it possible for sellers to reach out to planet wide markets and consumers, thus changing the way business is conducted. For every prospective Management Professional, the in depth understanding of ‘Online Marketing’ and ‘E Commerce’ have become very important. Marketing managers have got to go back to the class rooms to learn the new rules of game in handling Online Marketing which is drastically and totally different from the traditional marketing, selling, distribution and advertising strategies. Understanding all about Internet, E Commerce mechanisms, technologies, learning how to market online, understanding E Customer and learning to identify, build and nurture a relationship with the E Customer become the building blocks of one’s new learning.