The presentation is part of a series of Lectures on Management Information systems at the Department of Accounting, University of Jos. It elucidates the concept and practice of Ecommerce and its implications for the Accounting profession. DOI: http://dx.doi.org/10.13140/RG.2.2.24508.36486 Updated at: https://www.researchgate.net/publication/353654999_E-commerce

1. ACC 425: Management Information System
E-commerce
Prepared by: Erhomosele Osareme (B. Sc., M. Sc., ACA)
Department of Accounting, University of Jos, Nigeria

2. Table of Content
1. Meaning & scope
2. Critical factors
3. E-Accounting
4. Categories
5. Processes
6. Success factors
7. Process flow
8. Legal & regulatory
9. Pros & Cons
10. Challenges
11. Websites
12. Trends

3. Definition
E-commerce is the exchange of goods, services
and information via electronic networks. The
alternative to E-commerce is traditional
commerce; which does not involve electronic
networks.

4. E-commerce vs E-business
Although used interchangeably, E-commerce
describes primarily the act of buying and selling.
E-business, on the other hand, is a broader
concept that describes the process of carrying out
business functions and activities online.

5. E-commerce vs E-business
E-business
E-commerce

6. E-commerce vs E-business
Organizations are involved in more than just the
buying and selling of goods and services (E-
commerce). Other areas of E-business are; E-
accounting, E-marketing, E-publicity, Etc.

7. Origin
E-commerce originated in a standard
for the exchange of business
documents, such as orders or
invoices, between suppliers and their
business customers as far back as
1948–49.

8. E-commerce: The Stats
o In 2020, over two billion people
purchased goods or services online.
o In 2020 e-retail sales surpassed 4.2
trillion U.S. dollars worldwide.
o Globally, 57% of online shoppers buy
from retailers who are overseas.

9. E-commerce: The Stats

10. Critical Advancement Factors
These are factors which have contributed
directly and largely to the growth of E-
commerce globally. They provide the
fundamental infrastructure that have
shaped the ecommerce space.

11. Critical Advancement Factors
o Electronic Data Interchange (EDI)
o Electronic Funds transfer (ETF)
o Computer evolution
o World Wide Web (the Internet)
o Mobile phone evolution
o Social media emergence

12. E-Accounting
The emergence and growth of E-
commerce has forced the accounting
profession to re-think its practice models.
Now accounting is also practiced using
electronic models and platforms in order to
meet up with the accounting and financial
needs of clients.

13. Categories of E-commerce
E-commerce categorization is popularly
hinged on the flow of transaction from the
seller to the buyer. Consequently, multiple
E-commerce models have been
identified.

14. Categories of E-commerce
o Business to Business
o Customer to Customer
o Business to Customer
o Customer to Business
o Business to Authority
o Customer to Authority

15. E-commerce Processes
E-commerce processes are the logical steps
taken by both buyers and sellers from the start
to finish of an E-commerce transaction.

16. E-commerce Processes

17. E-commerce Success Factors
For E-commerce transactions to be
successfully carried out, certain factors need to
be given due consideration.

18. E-commerce Success Factors

19. E-commerce Process Flow

20. Legal & Regulatory Framework
Traditional business processes are usually
regulated by law and institutional regulators.
However, this has been a challenge in the area of
Ecommerce due to certain unique characteristics
and factors.

21. Legal & Regulatory Framework
o Prevalence
o Dynamism
o Architecture complexity
o Jurisdiction

22. Pros & Cons of E-commerce
There are advantages and disadvantages to
the use of ecommerce. Differentiating the
impact on buyer from the impact on seller is an
insightful way to measure the impact of E-
commerce.

23. Pros & Cons of E-commerce
ADVANTAGES DISADVANTAGES
Buyer Buyer
Seller Seller

24. Pros & Cons of E-commerce
Advantages: Buyer
 Speed
 Convenience
 Round the clock
availability
 Wide range of products
 May save cost
 Adequate information
 Product reviews and
ratings
 Price comparison across
multiple sellers

25. Pros & Cons of E-commerce
Disadvantages: Buyer
 Security risks
 Sometimes expensive
 Lack of personal touch
 Requires some technical
knowledge.
 Product limitation
 No product inspection

26. Pros & Cons of E-commerce
Advantages: Seller
 Wider market reach
 Time saving
 Cost saving
 Facilitates market research
 Supports collaboration
with other businesses
 Effective customer service
 Transaction efficiency

27. Pros & Cons of E-commerce
Disadvantages: Seller
 Risk of fraud
 Dependence on network
availability and security
 Risk of cyber attacks
 Extra responsibility for
security of customer data
 Logistics issues
 Tax and legal issues
 High level of competition

28. 1. Challenges of E-commerce Growth
in Nigeria
 Inadequate regulation
 Poor Electronic penetration
 Manpower shortage
 Power shortage
 Poor IT infrastructure

29. E-commerce Websites
Ecommerce can be implemented via various
platforms. However, the most popular platform is
an E-commerce website.

30. 1. E-commerce Website
A website is a set of interrelated web
pages, located under a single
domain name, typically owned by a
single person or organization, as a
tool for achieving specific objectives.

31. 1. E-commerce Website-Definition
An E-commerce website is a website
specifically designed and used for
the purpose of buying and selling
products (tangible, digital, services).
E. g Amazon, fiver, Etc.

32. 1. E-commerce Website-Components
1. Product
collection
2. Enquiry system
3. User database
4. Ordering system
5. Payment system
6. Shipping info.
7. Reviews/Rating
8. Sharing
9. Search feature
10. Filter feature

33. E-commerce Trends
Certain trends have emerged in the ecommerce
space . This is due to the dynamic nature of
technology. From an accounting perspective,
these trends are critical because the impact the
way accounting is being practiced.

34. 1. Cryptocurrency
Cryptocurrency (or “crypto”) is a
digital currency that can be used to
buy goods and services, but uses an
online ledger (blockchain) with strong
cryptography to secure online
transactions.

35. Cryptocurrency
Popular examples of cryptocurrencies
are Bitcoin, ethereum, teether,
binance coin, cardano, Etc.

36. Cryptocurrency
Cryptocurrency has become key in
Ecommerce due to its acceptability in
many regions. It remains however to
be seen how the legal and regulatory
issues around it would be addressed.

37. 2. Affiliate Marketing
Affiliate marketing is an advertising
model where third party agents
(affiliates) receive a commission for
generating traffic, leads or sales for a
company’s products.

38. 3. Social Media Advertising
The emergence of social media
platforms have opened up new
opportunities in the E-commerce
space. Buying and selling activities
can now be done on platforms such
as Facebook and Instagram.

39. 4. Cloud Computing
In a bid to improve security, efficiency
and speed; Ecommerce platforms
have made use of a service referred
to as cloud computing.

40. Cloud Computing
Cloud computing is the delivery of on-
demand computing services
(applications, storage and processing)
typically over the internet and on a
pay-as-you-go basis.

41. Conclusion
Clearly E-commerce has come to stay. The
covid-19 pandemic probably fast tracked the
growth of Ecommerce activities by at least a few
years. Accountants and businesses must begin
to align their strategy with this dynamic in order
to remain relevant.

42. ACC 425: Management Information
System
E-commerce
© 2021