ecommerce

A set of technologies, applications, and processes that ink business and consumers to one another or each other

• Product: typically tangeible material object
• Process: Phyical interaction between buyers and sellers
• Agent: Co-located individuals(people in store)

• Product: tangible OR DIGITAL
• Process:ONLINE interactions between buyers and sellers
• Agent: LACK of co-location(web page or email)

• Consumer to Consumer (c2c) -like ebay
• Business to business (B2B) -retailer ordering from supplier
• Business to consumer (B2C) -Dell.com

• Peer to Peer (file sharing)
• Cottage Industry (Online garage sale)
• Centeralized online seller websites (craigslist)

• Founded by Craig Newmark in SF in 95
• Originally email newsletter
• Expanded into online classifieds

• Founded by Pierre Omidyar as Auction Wars
• 2 primary sources of revenue
• (1) sellers pay fee
• (2) Take a percentage from each sale

• No inventory
• No transportation
• No cost except website operation
• Owns 30% of primary competition (Craigslist)
• Revenue continues to rise!

• Inbound Logistics: acquiring materials
• Production: maufacture, assemble, train workers
• Outbound Log: deliver to retailers
• Marketing: advertise
• Sales: convince consumer to buy
• Customer support: after sale follow up

Manufacturer>Wholesaler/Distributer>Retailer>PA>Consumer

Increasing

Ex. netflix beats blockbuster

• Supplier opportunities
• Consumer benefit

• It is the future of global commerce
• -Due to an increased need to work closely with others across the states, time zones and nations

telepresent surgery and warfare

• increased productivity
• reduced travel expenses
• decreasing price of equipment