E-Commerce.ppt.ppt

Section 2-1Why It’s Important E-commerce has impacted the economy in countless ways. Successful e-commerce entrepreneurs are aware of the specific advantages and disadvantages of conduction business online and plan accordingly. Section 2-1 Key Terms e-business brand loyalty mass customization value chain elastic demand E-Commerce Environment Business in the old economy focused almost exclusively on manufacturing physical goods. Today, in the new, electronic economy, knowledge production is the primary business driver. E-Commerce versus E-Business In Chapter 1 you learned that e-commerce is business conducted via electronic methods. ? E-commerce also refers to electronic transactions involving the transferring of ownership of goods or services. The buyer and seller have to agree on an exchange, whether monetary or non-monetary. E-Commerce versus E-Business Government, not-for-profit organizations, and corporations all conduct e-business. Benefits and Characteristics of E-Commerce In the era of e-commerce, the number of potential buyers is limitless. Benefits and Characteristics of E-Commerce The electronic marketplace is open 24 hours a day, 7 days a week. In this respect, it has made the retail marketplace more customer-focused. ? All-hours e-commerce poses various challenges to businesses, which must now be able to operate effectively at any time. Benefits and Characteristics of E-Commerce E-commerce offers businesses a multitude of effective and inexpensive ways to reach new and existing customers. Benefits and Characteristics of E-Commerce Web sites enable businesses to track customers’ purchasing habits. Benefits and Characteristics of E-Commerce If a customer will not accept a substitute, even when there are many other comparable products available, he or she is demonstrating brand loyalty. Benefits and Characteristics of E-Commerce Online retailers may be able to bypass many difficult decisions regarding inventory. ? Customers can