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E commerce
Presentation 2009
By Niaz Ahmed
Asad Mazhar
Taha Yaseen &
Jawed
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C o n t e n t s • Acknowledgement
• What is E commerce
• E commerce Functions
• Types of E commerce
• Global E commerce
• Interpretation
• E commerce and Pacific
• Objectives
• Plans
• Examples
• Transactions
• Marketing your Website
• Conclusion
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What Is E commerce?
Electronic commerce or e-commerce refers
to a wide range of online business activities
for products and services. It also pertains to
any form of business transaction in which
the parties interact electronically rather than
by physical exchanges or direct physical
contact.
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What Is E commerce?
E commerce is enabling or achieving your
business objectives by using information technology to enhance or transform your
business processes.
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E commerce Functions
You may have thought about…
• Shopping online
• Purchasing online
• Selling or bidding
• Paying bills online
• Banking online
E-Commerce provides these functions
and many more.
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E commerce Functions
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Type of E commerce
Business to business (B2B)
automating supply
increasing business efficiency
Business to Consumer (B2C)
Retail Sales
Customer Support
Business to Government (B2G)
Online Auctions
Consumer to Consumer (C2C)
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Type of E commerce
Business to Business (B2B)
B2B e-commerce is simply defined as e-
commerce between companies.B2B typeof e-commerce that deals withrelationships between and amongbusinesses. About 80% of e-commerce isof this type, continue to grow faster thanB2C.
Automating supply
Increasin business efficienc
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Type of E commerce
Business to Consumer (B2C)
B2C commerce between companies andconsumers involves customers gatheringinformation; purchasing physical goodsi.e. tangible such as books or consumerproducts or information goods.
The more common application of this typeof e-commerce are in the areas of purchasing products and information.
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Type of E commerce
Business to Government (B2G)
B2G is generally defined as commercebetween companies and the public sector.
As it relates to the licensing procedures,and other government related operations.The size of the B2G commerce isinsignificant as government e-procurement systems remain undevelopedin the country.
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Type of E commerce
Consumer to Consumer (C2C)
C2C is simply commerce between privateindividuals or consumers.
This type of e-commerce is characterizedby the growth of electronic marketplaceand online auctions. Particularly in vertical
industries where firms/businesses can bidfor what they want from among multiplesuppliers.
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E commerce
ecommerce is more then just an onlineshop selling goods…. Businesses makehuge savings by more efficient interaction
with their suppliers or buyers. A local pharmacist orders 60% of his supplies from
an overseas pharmaceutical suppliers website andsaves 5% in his purchases - is this ecommerce?
A remote Fiji resort attracts guests from the USA
after several exchanges of email. Is this ecommerce?
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E commerce Global
400 million users of Internet worldwide
2000 US online retail sales - US$30bn.
2004 US online retail sales – US$6.9trillion
US Online buying will reach US$6.9 trillion
2008/2009.electronic payment of bills and banking
will cost US Postal Service $17bn over 10
years.
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Interpretation ?
Consumers are willing to spend money ononline transactions.
Despite the recent dot.com drop ininvestment - consumers continue to usethe Internet in growing numbers.
The US figures are only part of the globalpicture.
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What is Working?
Pornography
Travel / Tourism
Retail - items that don’t need personal touch -objectivity in product quality and performance
music, books, gifts, Computers, electronic items
Auctions
Real Estate - houses and investment properties.Customer support services
More efficient and effective processes betweenbusinesses (B 2 B)
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Demonstrations - Tourism
Tourism:www.tongaonline.com/sailingsafaris
Sailing Safaris - TongaOne boat operation in 1996 from small island
base
Competing with 2 multinational yacht
companies with global marketing network Since 1997 - 80% of business from web site.
This statistic 60-80% of bookings from webinquiries is common to Tourism operators inthe Pacific.
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Example 1 - Tourism
Pacificnavigator.com - Travel Portal
One stop shop for travel info and
bookings.9 Pacific Island Countries
Travel Information and Bookings
Sticky Items - bring people back to sitemessage boards for comments
News
Postcards
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Example 2 - Retail
Artifacts - Papua New Guinea
www.niugini.com - PNG Portal
Sticky FeaturesForums, News, Chat, Postcards, Info pages
Sells PNG artifacts.
Transactions via email and bank transfers
Great product but management andoperation issues and no online
transactions.
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Objectives?
Why get online?
Promote awareness of your Organization
Sell a productCustomer support
Information and contact page
NetworkingEveryone else has a web page
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Plan
What is your product?Electronic, Services or physical
Portable and inexpensive to deliver
Tourism
Who is your market?Overseas Fish buyers
Upper income art collectorsBudget travellers / Up market
Obstacles, Implementation and deadlines.
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Transactions
1. Getting paid online is very difficult in the Pacific. Manybanks will need a large deposit or a strong relationshipto allow a SME to open a merchant / credit card
processing account at a bank. Alternatives include:
Bank transfer / wire
Credit Cards
Merchant account Manual / Automated processing
Third party processing paypal.com
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Conclusion
Despite infrastructure limitations in the Pacific,the target market in developed countries arelikely to be Internet users.
If unsure, start small. An existing website helpsdevelop your capacity to interact with customersand measure web potential.
Lobby Government for effective IT Strategy thatdevelops infrastructure and builds local capacity.