Advantages and Disadvantages - Technology in Commerce, Interdisciplinary issues in Indian Commerce Video Lecture | Interdisciplinary Issues in Indian Commerce - B Com

hello everybody this is winter Chen I'm
a professor of management information
system at Martin V Smith School of
Business and Economics as CSU Channel
Island and this is one of a series of
video lecture on electronic commerce and
in this segment we're going to talk
about some of the benefit of e-commerce
to post the seller and the buyer and
know so what what kind of good or
services or company may appropri in
terms of using e-commerce as a as a
marketing channel let's first talk about
some of the benefit of e-commerce to the
merchant or the seller and using
e-commerce certainly can help to expand
the marketing channel give firm
instantly a global reach to a wider
marketplace and such that they may
increase the sales of their product and
generate additional revenue also web is
also a very powerful tool which allow
company to target its customer in the
particular niche market and also once
you have a website the store is always
open open 24 hours as as the sign kind
of indicate and you don't actually have
hired that many people to run a website
other than some development effort
upfront maintenance effort as well as
some back-end logistic operation and on
the web you can collect a lot of data
about your customer which allow you to
establish better relationship with your
customer and also web is low cost
distribution channel for product or
service information to your
customer and on the web also you can
instant rate this the new product or
making price change and a change on can
can be done instantly so that increase
your response to the marketplace and
increase your speed to market the ticket
for new product and services the benefit
to the consumer is also quite attractive
first of all it's just the convenience
you don't have to drive around and make
comparison shopping by there's a
different store you don't have to wait
in line to check out and on the website
you can find numerous informative and
engaging presentation in terms of
product literature's or even on video
demonstration and and so the value of
the product service can be presented to
you up from there demo or even free
software download such that you can
experience the experience get a
well-designed website also make it very
easy for people to to kind of navigate
and follow step by step to get things
done when you have numerous products to
choose from
buta powerful search capability is is a
must and once at the end the website you
will find the most up-to-date
information if you have a chance visit
this webpage listed here and where you
will find a case of a company called
home Plus which is basically a grocery
store in Korea it's owned by a British
grocery straw
empire called Tesco you find out that
they have actually not just a website
they actually have posted of their
grocery item on a subway station that
using QR code which allowed people wait
for the subway trend to come come by to
browse and eventually use their
smartphone to placed on and take a shot
of the QR code and to place an order on
the home plus website and and the
grocery will be delivered to their home
once they they right at home so a
company certainly unmotivated
when ecommerce come around either by
fear or by by greed to move their
business online and and to.com your
company is almost consider imperative
and however company need to transform
the current business model by coming up
an innovative business model to take
advantage of what web and Internet has
to offer when you move online you do
need to study the internet law in in
late-night either's an internet Tax
Freedom Act which allow a lot of
internet company to be treated like
mail-order company which they don't have
to collect sales tax when they don't
have any physical operation at a
particular state and however in 2013 the
Congress passed a so-called the
Marketplace Fairness Act which
required ecommerce company to collect
sales tax if they have if they make
sales for more than a million dollars a
year so you just need to pay attention
to this complicated tax law and also you
may want to pay attention to the
interstate commerce law and the
international commerce law for instance
in some state you're not allowed to ship
wine across the state on borderline that
that actually applied to ecommerce
company and the challenge to any online
business is that your computer is just
one click away and certainly on the web
a lot of website present a broader
selection for the user to choose from
and however Sai we mentioned earlier the
shopper can easily go to a rival web
site to do comparison shopping and most
of the online web site offered free and
faster shipping option Amazon used to be
if you purchase something more than $25
the shipping is free and now I think
they recently raised that minimum
purchase price to $35 in order to
compete some of the traditional retail
store like Target Walmart or Best Buy
are responding by increased view have
their own online website increased its
online inventory and also for warm are
they encourage the worker to refer warm
our customer to warm on calm and they
give credit for individual store when
the online purchase was by customer
nearby and best I would also offer the
best customer free and expedited
shipping one of the challenge to the
traditional physical retail store is a
phenomena called
showrooming it's kind of a more recent
phenomenon which means people will go
online and shop around and once they
find something there interesting buying
although there are a nice picture they
can see a lot of time they will go to
physical store maybe Target Walmart or
Best Buy
to look at that new refrigerator or a CD
LCD TV in the physical store but if they
find a price from say amazon.com is
cheaper than Best Buy
they will actually go back on the online
website to purchase the store that the
products once they have seen and touch
the physical product at the traditional
retail store so this actually to a lot
of physical store it this is at a
challenge in its threat to their to
their success let's look at kind of
analysis bass sound based on the needs
for product information and and some of
the demographic dimension to see what
kind of product service or company has a
better technology fit to move to the
e-commerce for a list in the early day
we'll find out that product which
require a lot of detailed up-to-date
product information tends to move online
more aggressively those of so-called
early adopter and an Oso company whose
customers
ethics tends to be with high income and
better or higher education tends to move
on to the web kind of a business model
faster than others
although the demographic for people who
are online now seems to be normalized
which means people at a different
spectrum of the demographics in terms of
the income level education tends to all
have similar access to the internet
nowadays and one way to look at the ego
murmurs is certainly to look at your
business is it business to consumer or
is your business is business to business
and those who look at the goods and
services are you selling hot goods or
you you provide service or just the
digital goods and certain delivered
digital goods it's very convenient and
you you can deliver really fast and
cheaply without the complicated physical
logistic arrangement so that's one way
to kind of categorize different
opportunity for e-commerce operation
another phenomena that Wars paying
attention to is the moving from hard
goods to digital goods Netflix is a good
example Nicholas Negroponte eat coined a
term called Adams to bits if we look at
Netflix Netflix started as a DVD rental
through through mailing that's to some
extent Steve Adams a physical DVD in the
envelope has to be shipped to you you
have to ship it back but Neph
a few years ago started a streaming
video or movie streaming business
they're moving from atoms to bits in
this case and we we may study the
Netflix case in much more detail in this
course you can watch a video by Nicholas
Negroponte 8 describing this phenomenon
called not atoms to bits
another phenomena which is driving
incomers is what we may call asset light
generations if you follow this internet
trend report with a link listed here it
described a so-called shared economy and
instead of all say a lot of book people
tends to just buy e-books so you don't
really need physical bookshelf instead
of half the DVD tape or or I mean the
traditional tape or the DVD movie you
can just use Netflix streaming movie
service so you don't have to actually
store those movie physically and the
concept of so that's kind of we call it
asset lie so you don't have to store a
lot of physical goods there's a lot of
goods has been digital ties and the
share economy the post shower share
economy is Airbnb Airbnb allow
individual to rent their bedroom or even
their house true to traveller who may
not want to stay in the hotel and
because it's cheaper to just stay in
someone's apartment rented out a room to
them and and that's what we call shared
economy so Airbnb doesn't operate any
hotel
they just have people who listed their
room or house for for short-term rent
almost like a hotel and I think in
Silverlake in California a lady who ran
down one of her bedroom a really nice
bedroom and in the year she was making I
think thirty thousand dollars extra
income to make the ends meet so take a
look of Airbnb and certainly search some
of the news reporting some of the issue
this company has encountered ladling for
instance New York City is suing one of
its user for renting their room without
a license
Airbnb certainly supporting this user
however their website they are stated
they're not really responsible for any
loss or violation of a particular city
spell on that your house may be reside
ok we're going to close this sections
and when we come back next we're going
to talk about different kinds of
e-commerce business model in greater
detail see you next time