Section 1-3 Why It

1
Section 1-3Why Its Important

• E-commerce has revolutionized the business world,
  making it essential for companies in virtually
  every industry to have an online presence.
• Understanding the mechanics of the electronic
  marketplace will help you to appreciate its
  nature, scope, and importance.

Section 1-3
1
2
Section 1-3Key Terms

• electronic commerce
• bricks-and-mortar business

• multichannel retailer
• pure-play retailer

Section 1-3
2
3
The Evolution of Electronic Communication

• The introductory stage of the computer revolution
  lasted about four decades, when the Internet was
  still in the stages of development, revision, and
  refinement.
•  
• The permeation stage of the computer revolution
  began when computer usage took hold in personal
  lives, workplaces, homes, and schools. This
  continues today.

Section 1-3
3
4
Characteristics of E-Commerce

• A bricks-and-mortar business is a traditional
  business that does not engage in e-commerce.

bricks-and-mortar business a business with a
physical storefront
4
Section 1-3
5
Characteristics of E-Commerce

• A multichannel retailer has a physical location
  and an e-commerce component.

multichannel retailer a retailer that sells
its products via traditional channels (catalog,
bricks-and-mortar, and telephone) as well as via
an online channel
5
Section 1-3
6
Characteristics of E-Commerce

• While some companies generate sales from both
  real-world and online storefronts, pure-play
  retailers mainly sell online.

pure-play retailers retailers that sell
primarily through the Internet
6
Section 1-3
7
Purpose of E-Commerce

• The basic goal of e-commerce is to reach and
  transact business with customers using electronic
  means.
•  
• E-commerce is bringing new opportunities,
  challenges, and adventures to todays business
  world.

7
Section 1-3
8
Section 1-3 Review
1.

• How can the introductory and permeation stages of
  the computer revolution be differentiated?
• Describe how e-commerce has changed business.
• What jobs has e-commerce created?

2.
3.
8
Section 1-3
9
9