Factors that led to the spread of e-commerce
Google Revolution
During the early years of the emergence of e-commerce, it was influenced by many companies such as Amazon, eBay and Yahoo, but after 2001, e-commerce became greatly influenced by Google due to the emergence of what is called Google Ads, which constituted a major breakthrough in Google's life, as it made it easier for users to advertise and market their products using Google Ads. Google is no longer just a search engine, as there are many other services it provides such as Google Maps, book search, instant translation, Google Museum, Google Trips, Google Shopping and other services that have greatly contributed to the development and spread of e-commerce. Google is not the only one who has made a revolution, there are many other companies that provide marketing and advertising services.
The emergence of the second generation of the Internet - Web 2.0
Web2: It is the second generation of services related to the Internet and is a social network that relies heavily on users to add or modify content by changing or deleting information. Web2 Applications: Wiki is a website that allows multiple users online to collaborate in adding, deleting or editing content, and it also allows linking between any number of pages and uses wikis to facilitate the shared writing of documents with minimal restrictions. Wiki is a social software that has spread rapidly and has had an impact on the way knowledge is exchanged and shared across networks. The free, open, multilingual encyclopedia Wikipedia is the most famous application of the wiki program. Blogs are a web page that displays dated posts arranged in ascending chronological order, accompanied by a mechanism for archiving old posts. Each post has a permanent electronic address that does not change from the moment it is published on the network, so that the beneficiary can return to a specific post at a later time when it is no longer available on the blog's front page. Content may include hyperlinks and multimedia elements and may include personal, professional or academic information. Most blog applications allow archiving content, the ability to search between articles, and the opportunity for readers to comment. The most famous site provided by Google Blogger is the micro-blog site, which is derived from blogging, but differs from regular blogging in that it is limited to sending messages or updates with a maximum of 140 characters per message. This technology is based on giving each person the ability to write a blog of no more than 140 characters and publish it to interested parties and followers, where this blog reaches them either in the form of text messages to the mobile phone or in the form of an email or in the form of a message in an instant messaging program or using special programs, in addition to the site itself on the World Wide Web. Perhaps the most famous example of micro-blogging is the Twitter site. RSS service is a service for exchanging news coming from a forum, blog or any other site without the need to access it, and it is also good when roaming. Impact of Web 2.0 on Consumer Behavior
The emergence of Web 2.0 has affected the behavior of users as they have new tendencies including:
- Using new communication tools.
- Trusting advice provided electronically.
- Increasing the desire to buy electronically.
- The desire to provide feedback about a specific product or service.
- Benefiting from the comments of other users of a specific service or product.
Its concept
E-commerce is one of the modern expressions that has entered our daily lives to the point that it has become used in many life activities that are related to the revolution in information and communications technology. E-commerce is an expression that can be divided into two parts, where the first, which is "commerce", refers to an economic activity in which goods and services are traded between governments, institutions and individuals and is governed by several rules and regulations that can be said to be internationally recognized, while the second part, "electronic", refers to a description of the field of performing trade, and it means performing commercial activity using electronic media and methods such as the Internet
Its Requirements
Acquiring a computer. Or a smart phone
An Internet browser program.
An Internet subscription.
A purchase card for online shopping.
Characteristics of e-commerce
E-commerce applied on the Internet is described by several characteristics, the most important of which are:
There is no use of paper documents exchanged and used in conducting and implementing commercial transactions, and the processes of interaction and exchange between dealers are done electronically and no type of paper is used in it. Therefore, the electronic message is relied upon as a legal document recognized by both parties when any dispute occurs between dealers.
Through the e-commerce application, it is possible to deal with more than one party at the same time, so each party can send e-mails to a very large number of recipients at the same time, and there is no need to send them again.
The interaction between the two parties dealing with e-commerce takes place via the communications network, and what distinguishes this method is the presence of a high degree of interactivity without both parties being present on the network at the same time.
The lack of joint coordination between all countries for the purpose of coordination and issuing a specific law for each country, taking into account the laws of other countries, which in turn hinders the comprehensive application of e-commerce.
Intangible goods can be bought and sold directly and through the communications network, and thus e-commerce has distinguished itself from its counterparts of traditional means used in the buying and selling process, such as reports, research, studies, pictures, and the like.
The use of computer systems available in business institutions to flow data and information between the two parties without any direct intervention of human resources helps to complete the commercial process at the lowest costs and with high efficiency.
E-commerce Framework
The work of e-commerce applications revolves around two things:
Support services
People: buyers, sellers, brokers, etc.
Public policy: laws, taxes, technical standards.
Marketing and advertising: market research, promotion, website content, target markets.
Support services: order verification, security system development, etc.
Business partners: trade exchange, e-market, etc.
Infrastructure of telecommunications and information technology companies
Business model in the company:
Definition:
A way through which the company generates profits and revenues to maintain its survival.
Function:
Determines the performance of the company.
Helps in the feasibility study of the company.
Verifies the extent to which the work is proceeding properly and determines the company's profits and costs.
Structure and characteristics of the business model
Revenue system
Shared revenue models
Transaction Fees Model: A marketing strategy based on payment based on the size of the transaction.
Subscription Model: A marketing strategy based on a fixed subscription paid by the subscriber, usually monthly, for a specific service.
Advertising Model: A marketing strategy based on the company making its profits by displaying paid advertisements on its website.
Affiliate Model: A marketing strategy based on revenue sharing between two companies that communicate and promote each other.
Sales Model: A marketing strategy based on the company making its profits by selling its products or services.
