3

MA’AM MEHWISH KHAN

 Group no 4
Madiha Jabeen (23)
Aisha Akram
(01) 4
4

Madiha Latif (24)

Fehmida Akram
(11)
Naveed Qamar (44)
 E-Commerce
The advent of this Internet-based electronic
commerce has given businesses an
unprecedented marketing opportunity.

Despite the economic slowdown, this

increased e-commerce activity has
translated in growing online sales revenue.
 E-Commerce
We are in the midst of a social, business, and
cultural revolution.

This revolution was enabled and accelerated

by technology change.

At the center of this change is the Internet,

and, more specifically, e-commerce.
 E-Commerce
“An electronic transaction is the sale or purchase of
goods or services, whether between businesses,
households, individuals, governments, and other
public or private organizations, conducted over
computer mediated networks. The goods and
services are ordered over those networks, but the
ultimate delivery of the goods or service may be
conducted on or off-line.”
 Development of e-commerce

Factors need to be considered when dealing

with e-commerce support/development:

c) web models
d) the type of merchandise that is being
offered
e) the information that will be made available
to the user of the e-commerce system and
its role in the business model
 web models

1. Pure-web play model where E-commerce

plays only the role of an intermediary
between server and buyers.
2. E-commerce portal combined with their
own delivery system, which can be
considered a counterpart to the standard
store-chains except that points of sale
exist only on the Web.
3. Click-an-mortar business model, where
the e-commerce presence is developed as
an extension to the physical store (-chain)
presence.
 type of merchandise

Physical commodities (cloths,

stereo equipments)
– Direct contact with the merchandiser is
typically considered as part of the purchasing
process

Virtual commodities (tickets for

sporting events)
– No physical contact with the merchandiser is
required.
 Information

• Direct sales related

advertising

• Indirect advertising

• “value-added” information
 Amazon.com, Inc. is an American e-
commerce company in Seattle,
Washington.
 It is America's largest online retailer.
 Founded by Jeff bezos in 1994
 Started as online bookstore.
• Amazon.com sells lots and lots of
stuff.
• DVD's. music online. video games,
software, home improvement
products, and gifts.
• Besides its tremendous product
range, Amazon makes every
possible attempt to customize the
buyer experience.
Both retailers and individual sellers utilize
the Amazon.com platform to sell goods.

Large retailers like Nordstrom and Target

use Amazon.com to sell their products in
addition to selling them through their own
Web sites.
The sales go through Amazon.com and end
up at Nordstrom.com, or Target.com for
processing and order fulfillment.

Amazon essentially leases space to these

retailers, who use Amazon.com as a
supplemental outlet for their online sales.
 E-commerce portals combined
with their own delivery
systems
• Amazon sales channel called
Amazon Advantage is a place
where people can sell new books,
music and movies directly from the
Amazon warehouse instead of from
their home or store.
• Sellers ship a number of units to
Amazon, and Amazon handles the
entire sales transaction from start to
finish.
Amazon has four software development
centers worldwide. These units are
constantly creating new features for
Amazon.com and developing the
technology to support them.
Expanded Geographical Reach
and Expanded Customer Base

• E-commerce helps
organizations to
market their
goods and
services
internationally,
nationally and
locally
• Easy access to
Reduction of Marketing
and Advertising Costs

Reduction in costs of
distribution

Reduced administration
overhead
Costs of creating the product

Cost of determining product

availability (inventory
management).

Low costs of storing

information and lower
telecommunication costs.
 Benefits to organizations that use
e-Commerce with their business
partners i.e. manufacturers and
service companies
It minimizes Supply
Chain inefficiencies
i.e.
 reduces inventories
 reduces delivery
delays
 enables efficient e-
procurement.
 Benefits to organizations that use e-
Commerce with…….

• Through EC
organizations can
build more
collaborative and
stronger
relationships with
suppliers. This
includes
streamlining and
automating the
Benefits to organizations that use e-
Commerce with…….

MAIN AREAS ARE:

 selling 
 direct
marketing 
 fulfillment 
 procurement
 replenishment
and 
 customer
Consumers can buy when they want from
more locations.

More choices and when you have more

choices you can decide on a product
with better features at a more competitive
price.

Quicker delivery
Customer can receive more information
about the product, make a more informed
decision.

More information also leads to enhanced

customer satisfaction because the
customer has a better idea how to use the
product.
• E-commerce can help to realize
customer needs and help to provide
new and better products or services.
• One of the important drivers for an
organization to adopt e-commerce is
the demand from its supply chain
members.
• As a result of adopting e-commerce
across the supply chain pipeline,
organizations are able to create
linkages with suppliers, service
providers, and customers
• Equipped with richer
information about
downstream markets,
e-business can improve
firm’s responsiveness
to market dynamics
and help to expand
sales channels hence
enhance revenue
opportunity
Government Incentives
E-government can take the form of
various online transactions such as
company registration, taxation,
and applications for a variety of
employee- and business-related
requirement.

Government can disseminate

information about e-business
policies, best practice and
obstacles in order to facilitate e-
commerce adoption.
Organizations want to adopt e
commerce:
 To improve coordination with
Customers
 To cope with intense global
Competition
 To enter new businesses or
market
 To expand market for existing
Products/service
 For digital convergence
( digitalization of traditional
 Key issues

 Low education level for

developing countries
 Infrastructure bottleneck
 Legal and regulatory obstacles to
private business and international
trade
 Key issues………….

Organization inability to
utilize net capabilities
Lack of Security in financial
transaction
Lack of trust in virtual sellers
 Key issues………….

Low bandwidth connections

Limited Internet/computer
experience
customer fear of personal
information being used
wrongly
 privacy issues
 Key issues………….

lack of trust and user

resistance
 fear of payment information being
unsecure
linguistic challenges
limitations of support services
 financial cost
 sourcing tech support in foreign
languages
 Key issues………….

 higher employee
training required
to be click and
mortar 
 people's
resistance to
change 
 people not used
to  faceless /
paperless / non-
physical
 key inhibitors
Organizational Resource
Organizational inability to
utilize Internet capabilities

The lack of experience

Management support to
motivate staff

Insufficient investments

Knowledge barriers
 key inhibitors……..

Business
Environment
Security and trust
are major
impediments for
organizations
Problems relating to
security
Consumers
concerns
 key inhibitors…………
Legal Policies:

Legal protection for

Internet purchase

Lack of specific laws

governing Internet banking
and internet purchases

Lack of supporting law

about electronic
documents as legal
evidence
 Other Inhibitors……

 Lack of
trust/confidence
among supply chain
members

 Credit card use in the

country
 key inhibitors…………..

Culture (resistance to
change)

Trust

Technophobia

Internet access still

limited
 Weaknesses of General E commerce
Infrastructure
 The greatest weakness is, there is no interaction
between Customer database and Supply Module so
current customers’ behavior is neglected in existing
infrastructure’s resource allocation which is a big
question mark.

 The whole infrastructure is based on current and

historical analysis of customers’ data so minor
manipulation attack can wobble the whole
infrastructure.
 Weaknesses of General E commerce
Infrastructure
There should be visitors’ behavior analysis
{why he/she didn’t purchase? They were just
surfers or just return back / drop the item in
registration phase configurations due to security
reasons?}

Download delays as it is a major problem in

case of digital products due to heavy traffic.

Language problem

Improper handling of customers’ complains

 Solutions
Concept of Postponement

Assuring the database security by using

firewalls

Visitors’ Behavior analysis software

Download accelerator {Region wise division}

Language converter Software

Email Management system

 CUSTOMER
DATABASE

7. Customer data stowing

SYSTEM-MANAGER 8. Current data analysis

EXCHANGE MODULE Regional Language
Converter
Postponement

CLEANER
SUPPLY MODULE 1.INPUT AGENT

14. Markets scouting 5. Customer data

EXPERT SYSTEM registration
15. Business partner selection
17. Sale strategy generation 6. Data preparation
16. Supply function

PERSONAL
AGENT
Visitors
COMODITY 2. Customer Behavior
DATABASE identification
analysis
3. Support strategy
10. Commodity and transaction
selection
registration

11. Current data analysis

EMS Download
Accelerator for
digital products

WAREHOUSE
TRANSACTION
12. Data archive(s) MODULE
creation / modification
4. OUTPUT
8. Transaction’s service
13. Data archive analysis
9. Transaction realization
ANY QUESTIONS…...?????