Week 2: E-Commerce Mechanisms, Platforms, and Tools
Objectives:
Understand the main mechanisms, platforms, and tools in electronic commerce
(EC).
Explore e-marketplaces and their components.
Discussion question
1. What are the key differences between traditional marketplaces and e-
marketplaces? How do e-marketplaces facilitate the buying and selling process
compared to traditional methods?
Traditional
Criteria E-Marketplaces
Marketplaces
Location and buyers must visit in
anywhere at any time.
Accessibility person.
Geographical Limited to a local or
around the world.
Reach regional area.
Operating Operates 24/7 with no
Fixed operating hours
Hours time restrictions.
Products are physically Products are displayed
Product
displayed for customers through images, videos,
Display
to touch and try. and detailed descriptions.
credit cards, digital
Payment cash or via card at the
wallets, or other online
Methods point of sale.
payment systems.
Electronic Traditional advertising Online advertising (paid
catalogs (TV, flyers, outdoor ads, SEO, email
Traditional
Criteria E-Marketplaces
Marketplaces
ads). marketing, social media).
b.
Traditional
Criteria E-Marketplaces
Marketplaces
Buyers browse online, select
Buyers visit physical
Buying products, and pay through
stores, check products,
Method secure online payment
and pay at the counter.
systems.
Sellers rent physical Sellers list products online on
Selling space or own a platforms like Amazon, eBay,
Method storefront to display or Shopify, and handle
products. transactions digitally.
2. Describe the advantages of Web 3.0 over Web 1.0 and Web 2.0. Why are social
marketplaces considered to be a Web 2.0 application?
Advantages Over Web 1.0 and Web 2.0:
Decentralization: Removes reliance on centralized platforms (e.g., Google,
Facebook) and gives users more control over their data and interactions.
Increased Privacy and Security: With encryption, decentralized identity
management, and blockchain, users can have more secure and private
interactions.
Smarter, Contextual Understanding: AI and machine learning improve
search engines, personal assistants, and recommendation systems, making them
more accurate and context-aware.
User Empowerment: Blockchain allows users to have ownership and control
over digital assets, including content and data.
Improved Interoperability: Applications and services are designed to work
together more seamlessly, thanks to decentralized protocols.
Social Marketplaces (like Facebook Marketplace, eBay, Poshmark, and Etsy)
are considered Web 2.0 applications because:
1. User-Generated Content: Social marketplaces thrive on user-generated
content, where individuals create product listings, communicate with
buyers/sellers, and post reviews. This is a core characteristic of Web 2.0, where
user participation is key.
2. Interactivity: Users can interact with each other through comments, ratings,
and messaging. Web 2.0 emphasizes user engagement, which is evident in
social marketplaces where transactions are often complemented by social
interactions.
3. Collaboration and Social Features: These platforms are built around
communities of users who share products, feedback, and experiences. Social
networking features (e.g., profiles, friends, groups, etc.) are integrated into the
marketplace experience, another hallmark of Web 2.0.
4. Dynamic and Real-Time Data: The content on social marketplaces is
dynamic and updated in real-time, such as live chats, transaction updates,
product availability, and price changes. This level of interactivity is far beyond
the static nature of Web 1.0.
5. Personalization: Social marketplaces use algorithms to recommend products
based on user preferences, previous searches, or interactions. This form of
personalized content is a key feature of Web 2.0.
3. Debate: Social network services can provide good security to enterprise social
networks. However, security may limit users’ creativity and disrupt the
business. Should a company use such a service?
Multiple-Choice Questions
1. Which of the following best describes an e-marketplace?
o A. A physical store where transactions occur.
o B. An online platform that facilitates buying and selling.
o C. A traditional market where buyers and sellers meet in person.
o D. A catalog of products without any online transaction capability.
2. What is one of the main advantages of e-marketplaces over traditional
marketplaces?
o A. Limited operating hours
o B. Higher overhead costs
o C. Broader reach to a global audience
o D. Physical interaction with products
3. In the context of online purchasing, what is the primary role of a shopping
cart?
o A. To display advertisements
o B. To store selected items before checkout
o C. To provide customer reviews
o D. To compare product prices
4. Which of the following is a benefit of online auctions?
o A. Static pricing
o B. Limited market reach
o C. Dynamic pricing
o D. High setup costs
5. How does augmented reality (AR) enhance the online shopping
experience?
o A. By providing static images of products
o B. By enabling virtual try-ons and product visualization
o C. By limiting product selection
o D. By reducing website traffic
6. What is disintermediation in the context of e-marketplaces?
o A. The addition of intermediaries in a transaction process
o B. The reduction or elimination of intermediaries between buyers and
sellers
o C. The process of increasing transaction costs
o D. The introduction of new payment methods
7. Which of the following is an example of a virtual community in e-
commerce?
o A. A physical retail store
o B. An online forum where users discuss products and services
o C. A traditional market square
o D. A printed product catalog
Internet Exercise
1. Enter [Link].
(a) Find out what information is available to customers before they send a package.
(b) Find out about the “package tracking” system; be specific.
(c) Compute the cost of delivering a 10″ × 20″ × 15″ box, weighing 40 pounds, from
your hometown to Long Beach, California. Compare the cost for the fastest delivery
option with the lowest possible delivery cost.
(d) Prepare a spreadsheet using Excel for two different types of calculations available
on the UPS site. Enter data to solve for two different calculations
2. Enter [Link]. View the shopping cart demo. What features
impress you the most and why? What related services does it provide?
Compare it to [Link], [Link], and [Link].
3. Enter [Link] and [Link]. Prepare a list of the major products available
for building corporate portals.