Exam 2 Review - SOM 210: EXAM 2 REVIEW E-COMMERCE...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
SOM 210: EXAM 2 REVIEW E-COMMERCE - Background o Changing everything: Used to be a specialty but now its a standard business o Simple Definition: Buying and selling of products or services over electronic systems such as the internet o Complex Definition: The industry is more than just selling, it consists of making money on the internet and creating value online! - Electronic Commerce (e-commerce) o Accelerated commerce o Information is moving fast but processed faster o Opportunities for businesses to enhance relationships with: Customers Supplies Partner - Business to Customer (B2C) E-Commerce: When a business sells products and services to individuals o Background Best known implementations of E-Commerce An alternative to a brick and mortar store Amazon is a pure on-line store An enhancement to the industry Best Buy uses a hybrid model o How does it work?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Select Payment Clear $ Approve $ Confirm $ Order Fulfillment Delivery o Cost Advantages False belief: On-line stores have a cost advantage because of low real estate costs (original thought) Actual belief: On-line stores make up their cost advantage through Large Advertising Costs Complicated Logistics Different Labor Cost Advantages to the hybrid model o What do people buy? Retail: On-line catalogs Specialty Stores: Used cars, Pharmacy Services: Banking, Delivery, Rental Digital Goods: Online music/video (iTunes), Download software, eBooks o What is not selling well?
Background image of page 2
Special Delivery Items: Ice Cream Non standard, custom order High volume, high trust items: Art and jewelry in the $millions o The same business practices that apply to commerce still apply to e- commerce Marketing and advertising Customer service Value proposition Competitive advantage o Payment Options Most popular: Credit Cards E-Payment Systems: PayPal Cell Phone Payment Security: Verification Protection Problems Online shopper does not sign a credit card slip Credit cards were not designed for on-line shopping o Authentication (what you know) o Authorization (what you have) PayPal problems: Fraudulent accounts o Order/Fulfillment/Delivery
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Internet created a new business Drop-ship – Why buy and sell if you can sell and buy and have your supplier ship for you? Definition: A supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to wholesalers, who then ship the goods directly to the customer. Delivery is a BIG business o New Industries: Make money servicing online stores Web hosting Software (catalogs and shopping carts) Interactive Customer Service Online advertising/marketing SEO o Advertising Banners (CPM): Pay for impressions Pay per Click: Pay only if your ad is clicked Pay for Action: Purchase, Download, Register Pay for results
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 27

Exam 2 Review - SOM 210: EXAM 2 REVIEW E-COMMERCE...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online