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ctronic Funds Transfers (EFTs): Explain that, for mor e than 40 year s, banks have been using
electronic funds transfers (EFTs, also called wire transfers).
Electronic Data Interchange (EDI): Intr oduce the ter ms trading partners and value added network
(VAN).
There was also a time when it looked like all someone had to do was set up a website and they were in
business on the internet. This was the time of the Dot-Com Boom. This was followed by the Bust. Pets.com
provides a good example of what happened when a site is established, but the product or service can not be
delivered at a profit. What businesses learned through this period led to the Rebirth or business on the
internet. Businesses took what they learned from the failures and were able to recover. Today the one of the
main forcs driving the growth in online sales to consumers is the ever-increasing number of people who have
access to the Internet. In addition to the growth in the B2C sector, B2B sales online have been increasing
steadily for almost two decades. Figure 1-3 on page 11 depicts actual and estimated online sales in B2C and
B2B categories.
The Second Wave of Electronic Commerce
The first wave of electronic commerce was predominantly a U.S. phenomenon.
In the first wave of electronic commerce, easy access to start-up capital led to an overemphasis on creating
new large enterprises to exploit electronic commerce opportunities.
The increase in broadband connections in homes is a key element in the B2C component of the second wave.
The use of electronic mail (or e-mail) in the first wave was as a tool for relatively unstructured
communication. In the second wave, sellers are using e-mail as an integral part of their marketing and
customer contact strategies.
The increasing availability of wireless Internet connections has increased the volume and nature of B2B
electronic commerce.
The Third Wave Begins
The rise of mobile commerce (m-commerce) and the incr easing use of smart phones and tablet
computers is a big part of the Third Wave.
One of the most important changes brought about by fully operational handheld devices is that the Internet
becomes truly available everywhere.
Tracking technologies are increasingly integrated with each other and with communication systems allowing
companies to communicate with each other and share transaction, inventory level, and customer demand
information effectively.
This book is devoted to explaining technologies, the book’s focus is on the business of electronic commerce;
the technologies that enable the business processes.
The skills of merchandising and personal selling can be difficult to practice remotely. However, companies
must be able to transfer their merchandising skills to the Web for their Web sites to be successful.
A product that has a strong brand reputation is easier to sell on the Web than an unbranded item, because the
brand’s reputation reduces the buyer’s concerns about quality when buying that item sight unseen.
Electronic commerce is not something that every business should necessarily undertake.
One of the benefits of electronic commerce, is its ability to increase the speed and accuracy with which
businesses can exchange information, reducing costs on both sides of transactions.
Also the benefits of electronic commerce extend to the general welfare of society. Electronic payments of tax
refunds, public retirement, and welfare support cost less to issue and arrive securely and quickly when
transmitted over the Internet.
Most of the cautions and concerns regarding electronic commerce today, stem from the rapidly developing
pace of the underlying technologies and the reluctance of people to change the way they do things. These
barriers have disappeared for many types of online business and will continue to disappear as electronic
commerce matures and becomes more generally accepted.
A significant component of transaction costs can be the investment a seller makes in equipment or in the
hiring of skilled employees to supply the product or service to the buyer.
Businesses and individuals can use electronic commerce to reduce transaction costs by improving the flow of
information and increasing the coordination of actions.
electronic funds transfers (EFTs, also called wire transfers).
Electronic Data Interchange (EDI): Intr oduce the ter ms trading partners and value added network
(VAN).
There was also a time when it looked like all someone had to do was set up a website and they were in
business on the internet. This was the time of the Dot-Com Boom. This was followed by the Bust. Pets.com
provides a good example of what happened when a site is established, but the product or service can not be
delivered at a profit. What businesses learned through this period led to the Rebirth or business on the
internet. Businesses took what they learned from the failures and were able to recover. Today the one of the
main forcs driving the growth in online sales to consumers is the ever-increasing number of people who have
access to the Internet. In addition to the growth in the B2C sector, B2B sales online have been increasing
steadily for almost two decades. Figure 1-3 on page 11 depicts actual and estimated online sales in B2C and
B2B categories.
The Second Wave of Electronic Commerce
The first wave of electronic commerce was predominantly a U.S. phenomenon.
In the first wave of electronic commerce, easy access to start-up capital led to an overemphasis on creating
new large enterprises to exploit electronic commerce opportunities.
The increase in broadband connections in homes is a key element in the B2C component of the second wave.
The use of electronic mail (or e-mail) in the first wave was as a tool for relatively unstructured
communication. In the second wave, sellers are using e-mail as an integral part of their marketing and
customer contact strategies.
The increasing availability of wireless Internet connections has increased the volume and nature of B2B
electronic commerce.
The Third Wave Begins
The rise of mobile commerce (m-commerce) and the incr easing use of smart phones and tablet
computers is a big part of the Third Wave.
One of the most important changes brought about by fully operational handheld devices is that the Internet
becomes truly available everywhere.
Tracking technologies are increasingly integrated with each other and with communication systems allowing
companies to communicate with each other and share transaction, inventory level, and customer demand
information effectively.
This book is devoted to explaining technologies, the book’s focus is on the business of electronic commerce;
the technologies that enable the business processes.
The skills of merchandising and personal selling can be difficult to practice remotely. However, companies
must be able to transfer their merchandising skills to the Web for their Web sites to be successful.
A product that has a strong brand reputation is easier to sell on the Web than an unbranded item, because the
brand’s reputation reduces the buyer’s concerns about quality when buying that item sight unseen.
Electronic commerce is not something that every business should necessarily undertake.
One of the benefits of electronic commerce, is its ability to increase the speed and accuracy with which
businesses can exchange information, reducing costs on both sides of transactions.
Also the benefits of electronic commerce extend to the general welfare of society. Electronic payments of tax
refunds, public retirement, and welfare support cost less to issue and arrive securely and quickly when
transmitted over the Internet.
Most of the cautions and concerns regarding electronic commerce today, stem from the rapidly developing
pace of the underlying technologies and the reluctance of people to change the way they do things. These
barriers have disappeared for many types of online business and will continue to disappear as electronic
commerce matures and becomes more generally accepted.
A significant component of transaction costs can be the investment a seller makes in equipment or in the
hiring of skilled employees to supply the product or service to the buyer.
Businesses and individuals can use electronic commerce to reduce transaction costs by improving the flow of
information and increasing the coordination of actions.
