IT 204: E-Commerce
By the end of this chapter, you will be able to:
E-commerce isn't just "shopping online." It's a fundamentally different commercial environment built on a unique technological foundation.
⚡ These 8 features have transformed business models, consumer behavior, and market structures.
Let's explore each one.
Definition: E-commerce is available everywhere, at all times, making it independent of a specific physical location.
Definition: E-commerce technology permits commercial transactions to cross cultural and national boundaries far more conveniently and cost-effectively than is true in traditional commerce.
🇳🇵 Nepal Context: A small handicraft shop in Thamel can use a platform like Shopify or Etsy to sell pashminas and thankas directly to customers in Europe or North America, reaching a global market without needing a physical store abroad.
Definition: The internet is built on a set of shared, universal technical standards (like TCP/IP, HTTP). This creates one common platform for all businesses and consumers.
Key Impact: It drastically lowers market entry costs for merchants and reduces search costs for consumers. Anyone can connect and play.
Definition: The complexity and content of a message. E-commerce allows for the delivery of rich media with text, audio, and video simultaneously to a vast audience.
Text & static images only. Low richness.
Video & audio. High richness, but a one-way message.
Video, audio, text, animation, and interactivity. Highest richness.
Definition: E-commerce technologies allow for two-way communication between merchant and consumer, creating a more dynamic and engaging experience.
Instead of searching for a store employee, a customer on a site like Daraz can use the live chat feature to ask a seller a question about a product in real-time, mimicking a face-to-face conversation.
Definition: The total amount and quality of information available to all market participants (consumers and merchants).
Merchants can target marketing messages to specific individuals by adjusting the message to a person’s name, interests, and past purchases.
Example: "Hello, Anjali! Here are new arrivals based on your recent views."
Changing the delivered product or service based on a user’s preferences or prior behavior.
Example: Dell's website allowing you to configure a laptop with the exact RAM and storage you need.
Select exactly 2 interests to get personalized recommendations:
Definition: E-commerce integrates with user-generated content and social networks, allowing users to become co-creators of value.
The unique features of e-commerce technology have created a more powerful marketplace for both consumers and businesses.
These features are the building blocks of the modern digital economy.
Any questions?
Next Topic: Unit 1.3: Types of E-commerce