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.
Short answer
Long answer
Revise the answers in the full note.
Any questions?
Next Topic: Unit 1.3: Types of E-commerce