COURSE

E - COMMERCE

Lecturer: Nguyễn Thị Minh Hà

Email: nguyenthiminhha.cs2@ftu.edu.vn
 CONTENT

- Chapter 1: Introduction to e-commerce

- Chapter 2: The e-commerce business models
- Chapter 3: Building an e-commerce website
- Chapter 4: E-marketing
- Chapter 5: Digital signature
 GRADING CRITERIA

- Attendance: 10%
- Mid-term score: 30%, includes
+ 15%: mid-term test
+ 15%: Group project
- Final test: 60%
 GROUP PROJECT

• Idea: (50%)
+ Product? (10%)
+ Customer? (10%)
+ E-commerce business models? (30%)

• Technology: (50%)
+ Website: content (10%); context (10%)
+ Extensions (20%): at least 4
+ E-marketing tools (10%)
 Notice

- Attending on the presentation day is required. Anyone who

absent will get the grade deducted 30%. If you have a
suitable reason, the grade will be deducted 10%;
- Before the presentation, each group should examine the
possibility of connecting your computer to the projector;
- Preparing presentation before class to avoid wasting time to
correct mistakes.
 Notice

- Discussing with lecturer;

Agree
- Group discussion;
- Using electronic means
in group discussion.
 Notice

- Private talk in class;

Disagree
- Using electronic means
for private reason;
 REFERENCES

1. E-commerce textbook (published by Foreign Trade University)

2. E-commerce, 11th edition, Kenneth Laudon (e-book)
3. Vietnam E-commerce Report (from 2005 to 2015)
4. Vietnam E-business Index (from 2012 to 2018)
5. www.vecita.gov.vn (VN e-commerce Association)
6. www.idea.gov.vn (VN e-commerce and Digital economy
Agency)
7. Newspaper, books.....
 SCHEDULE

SESSION CONTENT

1 + 2 (11/3, 13/3) Chapter 1: Introduction to E-commerce

3 + 4 (15/3, 18/3) Chapter 2: The E-commerce Business Models

5 + 6 (20/3, 22/3) Chapter 3: Building an E-commerce website

Chapter 4: E-marketing
7 + 8 (25/3, 27/3)
Chapter 5: Digital signature

9 (29/3) Mid-term test (or visit Tiki/ Shopee)

10 (01/4) Project report

11 (03/4) Guess speaker + Review (7h30 – 11h30)

 OBJECTIVE

CONTENT OBJECTIVE

Chapter 1: Introduction to E-commerce Define the field/ product

Chapter 2: The E-commerce Business Models Define e-commerce model

Chapter 3: Building an E-commerce website Look for the ways to build website

Find out the tools to promote the

Chapter 4: E-marketing
website

Chapter 5: Digital signature Enable safe transactions

Guess speaker E-commerce in real

CHAPTER 1

INTRODUCTION TO E - COMMERCE
Chapter 1: Introduction to E-commerce

1 History of E-commerce

2 Definition of E-commerce

3 The overview of Vietnam E-commerce

4 Pros and Cons of E-commerce

 Group discussion

Discuss about the following question:

HOW HAS
E-COMMERCE
CHANGED
YOUR LIFE ?
 1. History of E-commerce

2007 – Present:
REINVENTION
2001 - 2006:
CONSOLIDATION

1995 – 2000:
INNOVATION
 1. History of E-commerce

1995 – 2000: INNOVATION

• A period of explosive growth and extraordinary innovation;
• Key e-commerce concepts were developed and explored;
• Thousands of dot-com companies were formed;
• The first widespread use of the web to advertise products;
• A period which was characterized by experimentation,
capitalization and hypercompetition;
1. History of E-commerce

... was launched in 1999

1. History of E-commerce

... was launched in 1994

 1. History of E-commerce

... was launched in 1995

 1. History of E-commerce

... was launched in 1997

 1. History of E-commerce

... was launched in 1995

 1. History of E-commerce

... was launched in 1996

 1. History of E-commerce

... was launched in 1995

 1. History of E-commerce

... was launched in 1996

 1. History of E-commerce

2001 - 2006: CONSOLIDATION

• A more business-driven approach rather than
technology-driven
• Strengthening became more important than
creating new things
• Financing shrunk as capital markets shunned start-
up firms
 1. History of E-commerce

2007 - Present: REINVENTION

• A period of reinvention involving the extension
of Internet technologies, the discovery of new
business models based on consumer-generated
content, social networking and virtual online
lives.
 EVOLUTION OF E-COMMERCE

1995 - 2000 2001 - 2006 2007 - Present

Mobile technology enables

Technology - driven Business - driven social, local, and
mobile commerce

Revenue growth Earnings and profits Audience and social network

emphasis emphasis connection emphasis

Smaller investments; early

Venture capital financing Traditional financing small firm buyouts by large
online players

Stronger regulation and Extensive government

Ungoverned
governance surveillance

Entrepreneurial social and

Entrepreneurial Large traditional firms
local firms
 EVOLUTION OF E-COMMERCE

1995 - 2000 2001 - 2006 2007 - Present

Proliferation of small online

Strengthening intermediaries renting
Disintermediation
intermediaries business processes of larger
firms

Continuation of online
Imperfect markets, brands market imperfections;
Perfect markets
and network effects commodity competition in
select markets

Return of pure online

Mixed “bricks and clicks” strategies in new markets;
Pure online strategies
strategies extension of bricks and clicks
in traditional retail markets
 EVOLUTION OF E-COMMERCE

1995 - 2000 2001 - 2006 20067- Present

First-mover advantages
Strategic follower
return in new markets as
First-mover advantages strength; complimentary
traditional web players catch
assets
up

Low complexity retail High complexity retail

Retail, services and content
products products
1. History of E-commerce
2. Definitions of E-commerce
2. Definitions of E-commerce
 2. Definitions of E-commerce

The narrow sense

The broad sense (Definition of UNCTAD)

 2.1. Definition of EC in narrow sense

E-commerce is the buying or selling

of goods and services over electronic
means and telecommunication
networks, especially computer and
the Internet .
 2.1. Definition of EC in narrow sense

E-commerce the use of the Internet,

the Web, and apps to transact
business. More formally, digitally
enabled commercial transactions
between and among organizations
and individuals.
Source: Laudon, 2015
 ELECTRONIC MEANS

An electronic means is a means that operates based on

electric, electronic, digital, magnetic, wireless, optical,
electro-magnetic technologies or similar technologies.
Source: Clause 10, Article 4, Law on e-transactions,
No. 51/2005/QH11
ELECTRONIC MEANS
TELECOMUNICATION NETWORKS

 Telephone networks;
 Television networks;
 Intranet;
 Extranet;
 Internet ;
 3G, 4G, 5G network;
 COMMERCIAL ACTIVITIES

Commercial activities mean activities for the purpose

of generating profits, including: sale and purchase of
goods, provision of services, investment, commercial
promotion and other activities for the profit purpose.
Source: Clause 1, Article 3, Commercial law,
No. 36/2005/QH11
2.2. Definition of EC from UNCTAD

Horizontal definition of E-commerce -

Enterprises’ concerns: MSDP

Vertical definition of E-commerce:

Governments’ concerns: IMBSA
MSDP
 E-Marketing

E-marketing activities
• Market research
• Website marketing
• E-mail marketing
• Search engine marketing
• Mobile marketing
• Social networks
• …
 E-sales

• Place an order online

• Shopping cart
• Customer database
• Traffic management
• Automated sales process
 E-distribution

Downloads (digital goods)

Effective improvement of distribution system

(traditional goods)
• E-logistics
• E-customs
• E-C/O
• E-warehouse
• E-supply chain management
• E-delivery management
 E-payment

E-commerce payment systems:

• Credit card
• Digital wallet
• Digital cash
• Online stored value payment
systems
• ....
E-payment

(Source: Vietnam E-commerce Report 2018)

IMBSA
 Infrastructure

Internet: an interconnected network

• 1961 – 1974: innovation phase
• 1975 – 1994: institutionalization phase
• 1995 – present: commercialization phase
World wide web / Web
• Web 1.0
• Web 2.0
• Web 3.0, 4.0
 Web 3.0

It is the “executable” phrase of Word Wide Web with

dynamic applications, interactive services, and
“machine-to-machine” interaction. Web 3.0 is a
semantic web which refers to the future. In Web 3.0,
computers can interpret information like humans and
intelligently generate and distribute useful content
tailored to the needs of users.
 Message

A data message means information created,

transmitted, received and stored by electronic
means.

Source: Clause 12, Article 4, Law on e-transactions,

No. 51/2005/QH11
 Message

Legal validity of data message

Information in data messages cannot have its
legal validity disclaimed for the sole reason that
it is expressed in the form of data messages.
Source: Article 11, Law on e-transactions,
No. 51/2005/QH11
Basic & Specific Rules

Basic
Rules

(Source: Vietnam E-commerce Report)

Basic & Specific Rules

Specific
Rules

(Source: Vietnam E-commerce Report)

Application

(Source: Vietnam E-commerce Report 2018)

 NOTE 1

1. “Brick and mortar” store: offline activities

2. Virtual (pure-play) store (click and browse):

online activities

3. “Click and mortar” (brick and click) store:

offline activities + online activities
 NOTE 2

Pure e-commerce Partial e-commerce

A company will sell a good

Everything happens on
through the internet but the
the Internet
fulfilment of the good will
need to take place in the
"real"
NOTE 2
 NOTE 3

E-commerce E-business

Primarily involves the

Primarily involves
application of digital
transactions that cross
technologies to business
firm boundaries
processes within the
firm
NOTE 3
 8 UNIQUE FEATURES OF E-COMMERCE TECHNOLOGY
Internet/Web is available everywhere: at work, at home
Ubiquity
and elsewhere via mobile devices, anytime
The technology reaches across national boundaries,
Global reach
around the Earth
There is one set of technology standards, namely
Universal standards
Internet standards

Richness Video, audio and text messages are possible

Interactivity The technology works through interaction with the user

The technology reduces information costs and raises

Information density
quality
Personalization/ The technology allows personalized messages to be
Customization delivered to individuals as well as groups

Social technology User content generation and social networking

 3. The overview of VN E-commerce
- ECVN portal hosted by the Ministry
of Industry and Trade was officially
put into operation from 8/2005
- Law on E-transactions was
approved in 11/2005 and effected
from 03/2006
- 6/2006: published Law on 2011
information technology
- 25/6/2007: Vietnam E-commerce 2009
Association was established
2007

2005
 Overview of VN E-commerce

2011
2009

2007 - 6/2008: establish Root Certification Authority

(belong to Authority of Information and
Communications application)
- Implement TrustVn program (13/6/2008)
2005 - E-payment gateway “Smartlink – MasterCard”
was launched on 16/3/2009
- Law on telecommunication was approved in
11/2009
 Overview of VN
- Enterprises E-commerce
strongly applied specialized software
(such as: CRM, SCM, ERP...) and started using
online public services provided by state agencies
(such as: electronic tax filling, electronic customs,
electronic import/export procedures, electronic
C/O...)

2011
2009

2007

2005
 Overview of VN E-commerce

2011
2009
- Marked the end of 5 years’
2007 implementation of the Master
Plan on E-commerce
Development for the 2006 –
2010 period.
2005
 Overview of VN E-commerce
- Implementing the Master
Plan on E-commerce
Development for the 2011-
2015 period and 2016-2020
period

2011
2009

2007

2005
 VN E-Business Index 2018

1. Rates of growth: still at high levels

2. Domains and websites: national or international?
SECTION I: 3. Blockchain and cryptocurrency: a constrast picture
OVERVIEW OF THE 4. Sharing economy: forward or backward?
2018 E-BUSINESS 5. Tax administration in e-commerce: the first turning
INDEX (EBI) point
6. The fourth industrial revolution: from will to
action
1. Enterprises in survey
SECTION II: 2. Infrastructure and human resources
OVERVIEW OF 2018 3. B2C E-commerce transactions
E-COMMERCE 4. B2B E-commerce transactions
5. G2B transactions

SECTION III: E-business Index by Province

4. Pros and Cons of E-commerce
 4. Pros and Cons of E-commerce - Pros

Reduce cost,
Increase revenue

Build and develop

To the customer relationship
Business

Improve
competitiveness
 4. Pros and Cons of E-commerce - Pros

Lower price

To the
Customer

More convenience
 4. Pros and Cons of E-commerce - Cons

Commercial problems

To the Technical problems

Business

Legal issues
 4. Pros and Cons of E-commerce - Cons

Lack of security

To the
Customer

Breakdown of
human relationships
4. Pros and Cons of E-commerce