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Lecture 15 1

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worldbestin858
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Application of Information and

Communication Technologies
Lecture 15

M. Ali Shahid
Department of Computer Science
E-commerce:

 Overview
 E-commerce Basics
 Business Applications
 Global Trends; Impacts
 Impacts on Market & Retailers
 Impact on Supply Chain Management
 Impact on Employment
 Impact on Customers,
 Impact on Environment
 Impact on Traditional Retail
 Distribution Channels.
E-Commerce Overview

E-commerce refers to the buying and selling of goods and


services via the internet.

Key Features:
Online transactions
Digital storefronts
Internet-based services and digital goods
E-Commerce Basics
Business Models:
B2C (Business to Consumer): Amazon, Walmart.
B2B (Business to Business): Alibaba, wholesale suppliers.
C2C (Consumer to Consumer): eBay, Craigslist.
C2B (Consumer to Business): Stock photo websites, freelance platforms.

E-commerce Platforms:
Shopify, WooCommerce, Magento
Payment Systems:
PayPal, credit cards, mobile wallets (Apple Pay, Google Pay)
Business Applications of E-Commerce
Retailing:
Online stores offering products to consumers.
Digital Goods:
Selling downloadable products (e.g., music, software).
Service Providers:
Freelancers, consultants, digital agencies.
Marketplaces:
Amazon, eBay connecting buyers and sellers.
Global Trends in E-Commerce

Mobile Commerce (M-Commerce): Growth in shopping via mobile


apps.
Social Commerce: Integration of shopping features in social media
platforms.
AI and Personalization: AI-powered recommendations for a
personalized shopping experience.
Omni-channel Retailing: Combining online and offline shopping
experiences.
Subscription Models: Services like Netflix, Spotify, and meal kit
subscriptions.
Sustainability: Increasing focus on green e-commerce, sustainable
practices, and eco-friendly products.
Impact on Market and Retailers

Market Expansion:
Access to global markets for small and large businesses.
Increased Competition:
Pressure on traditional retailers as e-commerce stores dominate.
Lower Overhead Costs:
E-commerce eliminates the need for physical stores, reducing operating costs.
Price Transparency:
Easy price comparison across brands.
Impact on Supply Chain Management
 Automation: Use of AI, RFID, and drones for inventory
and logistics.
 Faster Fulfillment: Shorter delivery times with next-day
and same-day shipping.
 Global Sourcing: Increased access to international
suppliers and vendors.
Impact on Employment

 Job Creation: Growth in tech, logistics, digital marketing,


and customer support jobs.
 Job Losses in Retail: Decline in jobs in traditional retail
sectors as online shopping grows.
 Gig Economy: Increased demand for delivery services
and flexible work arrangements.
Impact on Customers

 Convenience: Shop 24/7 from anywhere with


a vast selection.
 Informed Decisions: Easy access to reviews,
ratings, and product comparisons.
 Personalization: Customized shopping
experiences based on preferences.
 Security Concerns: Risks related to fraud, data
privacy, and payment security.

10
Impact on Environment

 Carbon Footprint: E-commerce's environmental impact


includes packaging waste and transportation emissions.
 Sustainability Trends: Adoption of eco-friendly
packaging and carbon-neutral shipping.
 Reduced Physical Store Footprint: Fewer physical stores
may reduce energy consumption.
 Reverse Logistics: The impact of returns on
transportation and waste generation.
Impact on Traditional Retail

 Decline in Foot Traffic: E-commerce's rise leads to


reduced visits to physical stores.
 Adaptation: Brick-and-mortar stores integrating e-
commerce and omnichannel strategies.
 Competitive Pricing: Traditional retailers pressured to
match online pricing.
E-Commerce Distribution Channels

Direct-to-Consumer (D2C): Businesses sell directly through


websites or apps.
Third-Party Marketplaces: Platforms like Amazon, eBay
enable wider reach.
Retail Partnerships: Collaborations between online and
physical stores (e.g., click-and-collect).
Dropshipping: Retailers sell products without holding
inventory, using third-party suppliers.

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