ecommerce p2

Summary

This lecture explores key aspects of e-commerce systems, focusing on digital payment methods, security, and the role of intermediaries in online transactions. It covers topics such as electronic fund transfers, credit card payments, digital wallets, and fintech. The lecture also delves into B2B e-commerce, digital marketplaces, and their significance in e-commerce. Key success factors like customer service, advertising, and security are discussed, alongside the benefits and challenges of e-commerce, such as lower transaction costs and privacy concerns. Finally, the lecture highlights the state of e-commerce in ASEAN and Brunei, touching on local online shopping trends and opportunities for growth.

Takeaways

• 😀 E-commerce involves buying and selling goods/services over the internet, with electronic payments playing a key role in transactions.
• 😀 Common digital payment methods include Electronic Fund Transfer (EFT), credit/debit cards, micropayments, and FinTech solutions.
• 😀 Security is crucial in e-commerce, with encryption (SSL) and digital wallets being common measures to protect credit card details during transactions.
• 😀 In a secure payment system, customers interact with merchant servers through encrypted connections, ensuring secure transaction processing.
• 😀 B2B (Business-to-Business) e-commerce enables businesses to buy, sell, or trade with other businesses, often involving integrated e-business systems.
• 😀 Digital intermediaries like infomediaries and digital marketplaces play important roles by facilitating information flow and connecting buyers with sellers.
• 😀 E-commerce business models include one-to-many (one seller, many buyers), many-to-one (one buyer, many suppliers), and many-to-many (multiple buyers and sellers).
• 😀 Digital marketplaces such as Alibaba, eBay, and Zalora unite buyers and sellers, enabling easier transactions and interactions.
• 😀 Success factors for e-commerce include product selection, competitive pricing, website usability, customer service, community engagement, and robust security systems.
• 😀 Benefits of e-commerce include cost savings, global access, faster response times, improved quality, and better customer relations.
• 😀 E-commerce faces challenges like customer retention, security concerns, integrating technological standards, and achieving long-term profitability.
• 😀 The global e-commerce market is growing rapidly, with regions like ASEAN expected to see significant growth by 2025, driven by a young, digital-savvy population.
• 😀 In Brunei, B2C e-commerce is dominant, with platforms like eBay, Zalora, and Amazon being popular, but local e-commerce is not yet very widespread.

Q & A

What are the four common types of digital payments in e-commerce?

The four common types of digital payments in e-commerce are electronic funds transfer, online payments using credit or debit cards, micro payments, and fintech-based payments.

Why is securing electronic payments important in e-commerce?

Securing electronic payments is crucial because payment information, such as credit card details, is vulnerable to interception by cybercriminals. Security measures like encryption and secure servers are needed to protect sensitive data during online transactions.

What is the role of Secure Socket Layers (SSL) in securing e-commerce transactions?

SSL is a security protocol that encrypts data passing between the customer's web browser and the merchant's server, ensuring that sensitive information like credit card details remains protected during online transactions.

How does a digital wallet enhance the security of electronic payments?

A digital wallet stores payment details and uses encryption to secure transactions. It acts as a secure software add-on that helps protect the user's financial information by reducing exposure during the transaction process.

What is B2B e-commerce and how does it benefit businesses?

B2B e-commerce refers to the buying and selling of goods and services between businesses. It benefits businesses by streamlining supply chains, improving customer relationships, and integrating e-commerce systems with existing business operations like supply chain management and CRM systems.

What are infomediaries and how do they contribute to e-commerce?

Infomediaries are intermediaries that control and manage the flow of information between buyers and sellers. They aggregate information and sell it to others, helping businesses and consumers make more informed decisions.

What is the role of digital marketplaces in e-commerce?

Digital marketplaces serve as platforms where multiple buyers and sellers interact and transact. These marketplaces provide a venue for businesses to reach a larger audience and offer goods or services in a structured, secure environment.

What are some success factors of e-commerce?

Success factors of e-commerce include product selection and value, website performance and service, advertising and incentives, personalization, community relationships, and the security and reliability of the platform.

What are the benefits of e-commerce for businesses?

E-commerce benefits businesses by reducing costs (e.g., lower logistics and storage costs), providing global access to customers, saving time (e.g., quicker response times), and improving product quality and customer relations.

What challenges does e-commerce face in terms of customer trust and security?

E-commerce faces challenges in customer trust, especially concerning the security of transactions and privacy. Many customers are hesitant to make large purchases online due to fears about data breaches, fraud, and the release of personal information.

How is e-commerce growing in the ASEAN region, and what factors contribute to this growth?

E-commerce in ASEAN is growing rapidly, with an expected increase in market value from $50 billion in 2017 to over $200 billion by 2025. Contributing factors include a young, digital-savvy population, increased internet access, and mobile-first platforms.

Why are local e-commerce platforms in Brunei not popular, and can they survive in the future?

Local e-commerce platforms in Brunei are not popular due to limited online shopping activity and reliance on international marketplaces like eBay and Amazon. However, there is potential for growth as the market matures, mobile access increases, and payment systems improve.