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Introduction to E-commerce
By
Chnoor M. Rahman
April 2021
Outline
• Computer Networks
• E-commerce Definition
• The Origins of E-commerce
• Growth of E-commerce
• E-business and E-Commerce
• Difference between E-business and E-Commerce
• Advantages of E-business and E-Commerce
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Computer Networks
• Computer network, two or more computers that are
connected with one another for the purpose of
communicating data electronically.
• Two basic network types are local-area networks (LANs) and
wide-area networks (WANs). LANs connect computers
and peripheral devices in a limited physical area, such as a
business office, laboratory, or college campus, by means of
links (wires, Ethernet cables, fiber optics, Wi-Fi) that transmit
data rapidly.
Computer Networks (cont.)
• WANs connect computers and smaller networks to larger
networks over greater geographic areas, including different
continents.
• They may link the computers by means of cables, optical
fibers, or satellites, but their users commonly access the
networks via a modem (a device that allows computers to
communicate over telephone lines).
• The largest WAN is the Internet, a collection of networks and
gateways linking billions of computer users on every
continent.
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What is E-commerce
E-commerce, in full electronic commerce, maintaining
relationships and conducting business transactions that include
selling information, services, and goods by means
of computer telecommunications networks.
E-commerce consists of business-to-consumer and business-to-
business commerce as well as internal organizational
transactions that support those activities.
The Origin of E-Commerce
• E-commerce originated in a standard for the exchange of
business documents, such as orders or invoices, between
suppliers and their business customers. Those origins date to
the 1948–49 with a system of ordering goods primarily
via telex. Various industries develop upon that system before
publishing the first general standard in 1975.
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The Origin of E-Commerce (cont.)
• Ecommerce was introduced about 40 years ago in its
earliest form.
• 1982: Boston Computer Exchange launches. It was the world’s
first ecommerce company. Its primary function was to serve
as an online market for people interested in selling their used
computers.
• In 1991 most e-commerce shifted to the Internet.
The Origin of E-Commerce (cont.)
• 1995: Amazon launch.
• 1998: PayPal launches as an ecommerce payment system.
• 2000: Google introduces Google AdWords as an online
advertising tool. Google Adwords was introduced as a way for
ecommerce businesses to advertise to people using Google
search.
• 2005: Amazon introduces Amazon Prime membership.
Amazon launched Amazon Prime as a way for customers to
get free two-day shipping for a flat annual fee.
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The Origin of E-Commerce (cont.)
• 2011: Google Wallet introduced as a digital payment method.
Google Wallet was introduced as a peer-to-peer payment
service that enabled individuals to send and receive money
from a mobile device or desktop computer.
• 2011: Facebook rolls out sponsored stories as a form of early
advertising.
• 2014: Apple Pay introduced as a mobile payment method.
Growth of E-commerce
• 2017: Cyber Monday sales exceed $6.5B.
Ecommerce set a new record when online sales broke $6.5
billion on Cyber Monday — a 17% increase from the prior year.
• 2020: COVID-19 Drives Ecommerce Growth.
COVID-19 outbreaks around the globe pushed consumers online
to unprecedented levels. By May of 2020, ecommerce
transactions reached $82.5 billion — a 77% increase from
2019. It would have taken four to six years to reach that number
looking at traditional year-over-year increases.
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E-Business and E-Commerce
• Some people use the terms "e-business" and "e-commerce"
interchangeably, but they aren't synonymous. To put it simply,
e-commerce refers to buying and selling online, while e-
business encompasses all business conducted online.
• E-commerce can be viewed as a subset of e-business.
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What are the key differences between
e-commerce and e-business?
• Buying and selling things via the internet is known as E-
Commerce. On the other hand, E-Business isn’t limited to just
buying and selling activities. All the business activities that
conducted via the internet will be considered as E-Businesses.
For example, the information and computing technologies
used to enhance one’s business.
• E-Commerce is a main part of E-Business
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What are the key differences between
e-commerce vs. e-business? (cont.)
• Some people agreed that when business is completely carried
through an electronic medium, then it can be referenced as E-
Business. There is no need for an E-Business to has a physical
presence in the market. If a company owns an office, and along
with physical presence carries out their business activities via the
internet, then it can be referred as E-Commerce.
• E-Commerce includes any kind of business transaction which
related to money, but E-Business includes monetary and allied
activities.
• E-Commerce needs the internet to be able to connect with the rest
of the world. E-Business can use more than that. Other than the
internet, it also can take advantages of intranet and extranet to be
able to connect with the parties.
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The Advantages of E-Commerce & E-
Business
1. Reduce money and time spent for your business.
2. Flexible business hours
3. Remove location restriction
4. Easily track your business growth
5. Reach your customer faster
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